ECT agitation continues unabated
View(s):The East Container Terminal (ECT) has become a crucial factor in the running of the operations at the Colombo Port as the industry fears a spiraling of tensions by trade unions and wants the government to make its decisions known clearly as authorities continue to grapple with the concession document.
A number of announcements are being made by the government regarding the agreement entered into between India, Japan and Sri Lanka on the running of the operations of the deep water terminal that is likely to generate higher volumes and act in competition to other terminals and ports.
Since the agreement on the Memorandum of Cooperation (MOC) was entered into in 2018 much water has flowed under the bridge as the agreement is today turning out to engage only one partner which is India and through them the Adani group.
In this respect, the 2018 document has vastly changed as according to the Cabinet paper submitted last year, it was stated that “it is necessary to adopt a strategy that will maintain Sri Lanka, Japan and India relations, consider MOC framework, not in the basis of loan but as a foreign investment to develop the ECT and recover expenditure incurred by SLPA and invest that in JCT and fast track the development of the Colombo Port.” The cabinet paper further states that Sri Lanka will maintain 51 per cent in the ECT and will support a FDI with no space for further borrowing or providing guarantees adding that the presence of a new investor with the support of India will “improve its business outlook and value through transshipment activities drawing Indian and Japanese cargo”.
However, there seems to be a lack of know-how even in carrying out the work on the concession document and the government is still grappling with coming up with the paper.
“The critical factor is the government taking a decision on the ECT because what we are afraid is that there is a bit of an agitation and hope that won’t go into a big strike,” Ceylon Association of Shipping Agents (CASA) Chairman Iqram Cuttilan told the Business Times.
Prime Minister Mahinda Rajapaksa told Parliament this week that no decision has been taken so far to hand over the terminal to a foreign operator.
Meanwhile India in its communiqué last week during the visiting Indian External Affairs Minister S. Jaishankar stated that they are “ready to enhance Sri Lanka’s capabilities to meet growing maritime and security challenges.”
The release noted further that in the “days ahead” they hope to expand their “domain of cooperation” in terms of ensuring safety and security in maritime cooperation.
Meanwhile, port workers staged a picketing campaign on Thursday opposite the Khan clock tower at the entrance to the Colombo Port asking the government to clearly state their stance on the ECT and to refrain from handing over of the operations of the terminal to an Indian company.
They noted that a terminal that could be run with generating high revenues for the Port of Colombo must be retained within the government to ensure that it continues to bring in profits to the people of the country.
Port trade unions believe they still can exert influence on the authorities to refrain from entrusting the ECT terminal’s operations to an outside party.
Further on January 11 a front is to be established combining forces from the government and opposition against the ECT handover, trade unions stated.
Meanwhile Sri Lanka Ports Authority Chairman Gen. Daya Ratnayaka said the project committee report on the ECT is expected within one or two weeks following which the Cabinet Appointed Negotiating Committee (CANC) can work on the ECT cabinet paper.
He noted that they were still at an initial stage in their discussions and that there was not much progress was made on the matter. (SD