The Cololmbo Port congestion and delay issue will be eased soon after the lands in Kerawalapitiya and Bloemendhal are used for activity, said President Anura Kumara Dissanayake.
The President was speaking at an event in Colombo last week on the current crisis in the Colombo Port which resulted in many ships diverting to other ports.
“The lands identified in Bloemendhall and Kerawalapitiya will be used for the port work soon and that will ease the congestion at the Colombo port,” the President said.
Ports and Highways Minister Bimal Ratnayake said that a large number of ships that were supposed to call at the Colombo Port bypassed it due to delays in clearance which caused a substantial loss to the port income anrepuation.
The Colombo Port is well known for transshipment business.
The Colombo Port, the country’s main maritime hub during the past month faced a major congestion crisis that compromised its operations and global competitiveness.
The situation remained unresolved last week despite the government intervening with directives to expedite container clearance.
When delays in container clearance occur the loss generated is through extra demurrage and Customs fees.
Port authorities said two-three days in berthing delay from lack of capacity had caused a considerable loss to Port revenue.
According to ports and shipping experts the main cause of congestion is the availability of only three deep-draft berths at the Colombo International Container Terminal while the East Container Terminal is still partially operational.
Such delays are compelling ships to opt for other ports, in India or Singapore, causing Sri Lanka to lose its competitive advantage.
They noted that although, there are multiple factors causing congestion at the Port, strict inspection of cargo is also a major reason leading to disembarking delays.
Goods from India, which normally reach Sri Lanka in eight hours, take up to 10 days to reach local markets.
In the past five to six months, about 25 to 30 ships bypassed Colombo, said president of the Customs House Agents and Traders Association, Tuan Ghouse Arfin, who also complained about slow Customs operations, aggravated by staff shortages and stricter inspections.
This issue has led to wharf clerks having a hard time clearing consignments at prices quoted to clients as extra payments have to be made due to delays. “Customs officials, who are required to work 24 hours a day, often work until 3 am and then resume at 8 am, accumulating overtime and increasing operating costs to clear the backlog,” former Customs Superintendents Nihal Vithanage and Damith Punchihewa said.
To overcome the problem, port infrastructures need to be expanded and customs operations reorganised.
Experts said that it is crucial to expand port capacity and customs inspection points.
They said that demurrage charges at customs for delays range from 15,000 to 20,000 rupees per day depending on the length of the container. Port congestion is also likely to have a direct impact on consumers, with a possible 20 percent increase in import costs. The Container Transport Owners Association reported that 800 to 1,000 vehicles are stuck at the port, with drivers forced to wait up to a week for Customs clearance.
