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By Holly Maycock

The government owned Sri Lankan Ports Authority (SLPA) has recently signed an agreement with six of the largest shipping companies in the world. The Chairman of the SLPA Parakrama Dissanayake told the Daily News that the companies have "committed their current and future services solely to the SLPA" the American President Line, Maersk Sealand and Hanjin Shipping being some of the well renowned companies. This exclusive and definite business will increase the Colombo Ports capacity from 2.2 million TU's per annum to 3.4 million TU's per annum, currntly making it the largest container Port in South East Asia.

This increase in productivity will keep the SLPA on level ground with the success of the privately owned South Asia Gateway Terminal (SAGT), helping to keep the entire Port in tough competition with the rest of South Asia.

The continuing sucess of the Peace talks has enhanced the confidence levels of the Shipping companies involved. The peace dividends have enhanced their enthusiam and been very important to the agreements progress.

Although the SLPA ensures that any change in the talks will not affect the enactment of the agreement. The productivity of the port has only recently recovered in the last few months, seeing a 16% rise in October alone, after the war risk crisis and surcharges on lines for a nine month period. The Agreement also has very positive implications on the country's economy. As it is a profit making organisation the increased revenue is beneficial for the country as a whole, contributing Rs 12 billion to the Treasury enhancing both economic and social aspects of Sri Lanka.

Although the SLPA is simultaneously downsizing and streamling thier 18000 strong staff, these redundancies are allowing the company increased efficiency, saving around Rs 800 million. The Agreements have the strong support and approval of the government due to the income generating oppotunities created by the increased productivity.

The Ministry of Finance have been in close contact with the SLPA while the agreement was being formulated. As the Chairman said "Sri Lanka being an island means that the Ports are one of the most important industries in the country and this agreement bodes well for their future sucess". The six companies future service will help Colombo become one of the largest and most competative Ports in South Asia.

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