The East Container Terminal (ECT) will add 500 more jobs to the country and increase the Colombo port’s viability to global shipping lines, but it has brought about concerns by port workers against the inclusion of foreign partners in the running of the terminal. “Once the MOC (Memorandum of Cooperation) was signed there was objection [...]

Business Times

Colombo Port ECT moves ahead amid concerns

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The East Container Terminal (ECT) will add 500 more jobs to the country and increase the Colombo port’s viability to global shipping lines, but it has brought about concerns by port workers against the inclusion of foreign partners in the running of the terminal.

“Once the MOC (Memorandum of Cooperation) was signed there was objection from one trade union. But I’m meeting them and trying to take away the mystery,” Sri Lanka Ports Authority (SLPA) Chairman Kavan Ratnayaka said at a media briefing held in Colombo on Monday. With 500 more jobs on offer once the new company is established this would add to the existing 9900 already employed at the Colombo port.

SLPA will have a stake of 51 per cent in the Terminal Operating Company (TOC) formed as part of the agreement with the rest to be held jointly by Indian and Japanese partners in the project.

It is the Japanese that brought in the Indians into the equation, Mr. Ratnayaka said adding that the Japanese are the leading partners in the terminal. Sri Lanka has put forward certain conditions like the inclusion of a shipping consortium as one of the partners from India.

However, authorities also noted that India being a party to the agreement was crucial for Sri Lanka since 70 per cent of the transshipment traffic calling at the Colombo port were for India.

Expected to commence in 12-18 months, the chairman said that the final agreement on the TOC and the share split between Japan and India would be worked out within a period of three months.

Mr. Ratnayaka noted that most in the industry had identified this move of getting the ECT underway as a “positive development” like the Ceylon Association of Ship’s Agents (CASA) and the Sri Lanka Association of Vessel Operators (SLAVO) that had come out in support of the venture.

“It’s better business to sell 49 per cent to reduce the debt loan,” Mr. Ratnayaka said adding that this was required in order to undertake future investments as well in line with further port expansions into the second phase of the ECT, the West Container Terminal (WCT) by 2030 and a North Port by 2050.

It was pointed out that eventually the Jaya Container Terminal (JCT) that is mainly a feeder will become redundant in the future and operationalising ECT was imperative for the continuation of the JCT.

JCT is currently operating with 30 year old cranes and “if we use our own funds,” the chairman said they would be able to modernise the JCT terminal to give it a longer life that had been infused with a Rs.110 million investment.

Authorities have already spent US$100 million on construction work of the ECT and a further $120 million on purchase of equipment that were said to be bought at a fair price due to the Japanese involvement in the project.

In addition, the authorities would be given a loan component of $500 million for the work to be carried out on ECT 1 and 2.

Mr. Ratnayaka was confident that the workers at the Colombo port would comply and that they would also be allowed to act as observer in entering into the agreement.

Quay length of the existing ECT is 440 metres with a capacity of 800,000 TEUs and a draft of 18 metres that would ensure it could accommodate some of the ultra large vessels plying this route that are currently accommodated only at the Colombo International Container Terminal (CICT).

New SLPA 17-storey head office worth US$20 m
Sri Lanka Ports Authority (SLPA) will be setting up its new 17-storey head office building at a cost of US$20 million scheduled for completion in two years.

Work on the project has already commenced, Port Development Director Susantha Abeysiriwardena announced at a media briefing held in Colombo on Monday at the SLPA Chairman’s office.

He noted that they had decided to have a head office building that would be located opposite the Customs building in Fort.

In this respect, they would also have to demolish buildings inside the port for the establishment of the Maritime Facilitation Centre that would be where officials not required on the ground would be housed in addition to serving the entire industry from this one office.

This is also part of the port elevated highway project that would also help to ease the traffic congestion within the port. It would also help to connect to the main highway and have a connecting road underground via Galle Face to Marine Drive. Awarding of the contract on the project would be carried out in July, he said.

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