Rs.4 bln loss to SLPA from ECT
The East Container Terminal (ECT) has reported an estimated loss of Rs.4 billion to the Sri Lanka Ports Authority (SLPA) due to its inactiveness over the past two years, Ports and Shipping Minister Mahinda Samarasinghe said on Thursday.
Dodging the crucial questions on how the ECT would be run, the minister insisted that the government intends on fast-tracking the project and make it operational.
Minister Samarasinghe was addressing the industry at a panel discussion of the Chartered Institute of Logistics and Transport (CILT) at the Kingsbury in Colombo on Thursday.
He noted that the present Jaya Container Terminal (JCT) was insufficient to handle deep draft vessels, which could only be accommodated currently at the Colombo International Container Terminal (CICT).
“It’s a shame we have wasted two years,” the minister said noting that they were currently also paying attention to the concerns mentioned in a cabinet paper submitted by former Minister Arjuna Ranatunga regarding the Expressions of Interest (EOI) for the ECT.
The minister also said that they had the capacity to run the ECT adding however, that should the government believe it is necessary to bring in an outside equity it will do so. But ownership as of now is with the SLPA adding that they would continue developing the terminal.
Meanwhile the SLPA, which has already spent US$175 million in servicing the Hambantota port project loan, would be compelled to take on the Foreign Direct Investment (FDI) by China Merchant Holdings to help pay off these loans.
The SLPA Act would not be amended to suit a particular situation and the minister assured they would put in place an agreement without endangering the country’s national integrity.
He dismissed as “bunkum” allegations of “selling” the Hambantota port to the Chinese insisting however, that the government was conversely trying to get itself out of the “debt trap.”
SLPA Chairman Dr. Parakrama Dissanayaka addressing the industry said that they were currently talking to stakeholders in a bid to draw up the maritime master plan.
He called for the warfare between the South Asia Gateway Terminal (SAGT), the SLPA-run JCT and the CICT run by China Merchant to stop as the authorities were “embarking on a national port master plan.”
In this respect, the government has taken the initiative to launch a programme to re-brand the Colombo Port, Dr. Dissanayaka said.
Modernisation of the JCT is expected with more modern equipment; a cargo distribution centre at Bloemendhal Road and a logistics corridor for which land along the port access road would be used, the Chairman explained. In addition the yacht marina in Galle port and a ship repair and maintenance centre would also be established.