Colombo Port spearheads capacity by 2026
The Port of Colombo has expectations of sustaining its position in the region despite the possibility of a looming threat of losing business to the recently established Port of Vizhinjam in India.
In the backdrop of the Red Sea crisis, the Colombo Port has been handling volumes above its capacity, Sri Lanka Ports Authority (SLPA) Chairman Keith Bernard said adding that it is those vessels that cannot be handled at the port that call at the Vizhinjam Port.
“They are not taking business from the Port of Colombo in fact it is only ad hoc business that is going to the Vizhinjam Port,” he said.
He explained that the Colombo Port has been operating its normal services and whatever excess that could be handled at the Port is taken in and that which cannot be accommodated will not be taken in. In this respect, it is this excess that cannot be handled at the Colombo Port that have shifted to the new regional port.
Mr. Bernard noted that the Colombo Port has plans to increase its capacity upto 14-15 million TEUs by 2026 with the new East Container Terminal (ECT) and the West Container Terminal (WCT) adding 3 million TEUs each to the port’s capacity.
This clearly highlights that the Port of Vizhinjam will not be an immediate threat to the Colombo Port, it was noted. He also pointed out that while Vizhinjam has reduced its prices the Colombo Port is operating within their existing capacity and as such do not need to undercut others in the region.
Commenting on vessels bypassing Colombo, Mr. Bernard explained that this was mainly due to the fact that there were delays at other ports.
Sri Lankan logistics industry analysts point out the looming threat to Colombo Port from the Port of Vizhinjam lies in the lower rates offered at the Kerala port with free storage periods.
However, it was pointed out that the Vizhinjam Port is a relatively small port with its capacity very low like one of the terminals at the Colombo Port. In this respect, Colombo remains by and large very competitive.
But the industry is exerting pressure on the authorities to focus on developing the ECT and obtain the yard cranes and rails to ensure increased services and to cater to the increasing demand at the Colombo Port without losing business to its other terminals.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!