Business Times

Colombo port slips in growth to 2.34% in first 9-month period

By Sunimalee Dias

Growth rates at the Colombo Port have dropped sharply with the first nine months of the year (to September 2011) showing a growth of only 2.34% against the same period in 2010 whereas the growth in the same comparative periods in 2010 vs 2009 showed 19.96 %. Some industry players attributed the drop in growth to lack of efficiency.

Volumes totalled 3.16 million TEUs in the nine months to September 2011 against 3.09 million last year (9-month period). In September, volumes dropped from 355, 639 TEUs (2010) to 340, 596 TEUs (2011) and industry sources told the Business Times that this (drop) was observed in the months of May and July as well.

Similarly, it was pointed out that transshipment volumes at the port also recorded a drop amounting to 247, 549 TEUs in September 2011 compared to 268, 897 TEUs last year, sources said. Industry sources blamed the current developments on ships bypassing the Colombo port due to congestion that has been attributed to low productivity levels.

While container volumes are slow at the Colombo port some of the ports in the region have witnessed a significant increase in the same period (January-September). Colombo recorded an increase of 2.34% while other regional ports showed a growth of 6% in Chennai, 11% in Kandla, 50% in Paradip, 6% in Tuticorin, 10% in Shanghai and 20% in New Mangalore.

Industry observers point out the need to “put the house in order by increasing efficiency at the Sri Lanka Ports Authority (SLPA) managed berths before taking on new projects”. However, others in the industry observe that while ships are not really bypassing Colombo, they are on the other hand not calling at the port as they continue to call at other regional ports as part of a short term measure due to changes in schedules to accommodate volumes in vessels.

Further, they also pointed out that while the Colombo port had dropped in its productivity levels some time back this was not the case at present. They noted that with the Colombo port installing gantries productivity levels have increased with moves per hour also increasing by about 20%.

However, they do agree that there is a drop in transshipment volumes this year, which is quite likely because of ships going direct to the other ports without engaging in transshipment at the Colombo port.
Industry officials point out that however, the Colombo port should strive towards achieving a crane productivity of 30 moves per hour whereas the SLPA managed terminal currently does only around 18 moves per hour.

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