Strikes, congestion force vessels to bypass Colombo Port
View(s):By Sunimalee Dias
The Colombo Port is currently facing a crisis due to the increased congestion and drop in volumes in June as a result of which vessels are likely to bypass Colombo with certain shipping lines expressing interest in moving to newly opened Indian ports likely to cause stiff competition to Sri Lanka.
The Colombo Port has recorded an increase of 12.5 per cent in the number of vessels calling at the port during the first half of this year but June volumes have recorded a drop.
The total cumulative number of TEUs from January to June 2024 is 3,883,997 TEUs which is an increase of 432,674 TEUs compared to 3,451,323 TEUs generated during the same period last year, statistics from the Sri Lanka Ports Authority (SLPA) indicate.
However, interestingly there has been a slowdown in volumes for the month of June when the volumes reduced in total by a marginal 0.2 per cent that totalled to 1,513 TEUs from 634,125 TEUs in June 2023 to 632,612 TEUs in 2024.
Vessels calling at the Colombo Port are said to have to wait for nearly five days to berth with about four days at the CICT and around three days at the SAGT.
The yard is “absolutely congested” as a result of which the ships operations are delayed and the recent Customs strike also added to the congestion as now clearing is held up.
Industry sources, point out that the drop volumes was a result of the work to rule campaign started by the Customs workers and cargo will take at least three months to be completely cleared.
The turnaround time for a vessel that usually took about 24 hours is now taking about 38 hours or even more at the Colombo Port.
In fact a crane that would handle about 30 containers per hour is now said to be taking a longer time which has become a major problem going forward.
The East Container Terminal (ECT) that was expected to be able to handle any increased traffic at the Colombo Port alongside ultra large vessels is today struggling to get its yard operations in order.
Currently old UCT gantries are being used for this yard which is today operating as a temporary container storage yard area. The ECT yard still has work to be done with the laying of rail tracks to ensure that the rail mounted gantries that were delivered to the Colombo Port from China last month could be fixed.
Some of the transshipment volumes are being discharged elsewhere as vessels are said to bypass Colombo Port due to the growing congestion at the port, sources said.
SLPA Chairman Keith Bernard told the Sunday Times Business that as a result of the congestion the Colombo Port’s terminals need to be “selective” in bringing in vessels to the port.
The drop in volumes during June he said is a result of the Customs work to rule campaign that led to cargo hoarding up at the Colombo Port.
On Wednesday a meeting had been called with the main terminals and the SLPA on how to overcome the future possibility of vessels bypassing Colombo.
Mr. Bernard said that one of the measures taken will be to open the internal roads to provide better movement between the terminals for Inter Terminal Trucking (ITT).
The delays in operationalising the ECT yard was blamed by the SLPA on the silting that has taken place in the yard area. The yard is likely to be operational by December, Mr. Bernard said.
The consignment of 12 new rail mounted gantries received last month will be awaiting another 10 more. The plan is to have 40 rail gantries in place, Mr. Bernard said.
Vessels bypassing Colombo due to the congestion are likely to also tap ports like the Vizhinjam port in Kerala run by the Adani Group that on Thursday commenced operations opening up to welcoming vessels. The Adani Group is also involved in the running of the West Container Terminal (WCT) at the Colombo Port set to become operational by January 2025.
Ships bypassing Colombo will lead to a space crunch and send freight rates skyrocketing as currently exporters are in dire need for more space on ships since they are skipping Colombo. Due to lack of space freight rates are doubling and even tripling in some cases.
Mr. Bernard agreed that the ECT will not be fully operational until the end of this year – “we will have to wait for the next six months.” Commenting on the opening up of the Vizhinjam port, he noted that this will be complementary in the region and observed that there will be ample capacity for both to carry out operations.
Sri Lanka needs to wait till October 2025 for the ECT to become fully operational which is a lost opportunity, he noted.
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