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| Saturday, 6 March 2004 |
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PA achieved high-water mark in port development by a Correspondent Sri Lanka an island nation strategically located in the Indian Ocean is at the centre of East-West maritime routes and international time zones. The Port of Colombo has over 20 major shipping lines and several feeder services in operation, and is considered one of the most efficient streamlined ports in the region.
However, the Colombo Port's true potential to develop as a shipping hub was not tapped to its full till the PA Government took an initiative to get private sector support to develop the Colombo Port as the regional hub. Significant private funding during President Chandrika Bandaranaike Kumaratunga's Government from 1994 to 2000 led to dramatic growth in both the manufacturing and service sectors. Kumaratunga, who was elected as president for a second term in December 1999, embarked on a radical program of privatisation. It is in marked contrast to the nationalisation plans followed by her prime minister father before he was assassinated in 1959, which were subsequently continued by her mother. Colombo Port was nationalised by her father and Kumaratunga embarked on the partial privatisation of the port. In the late-90s, the PA government took a decision to develop and position Sri Lanka as a regional shipping and logistics hub similar to Dubai, Singapore and Hong Kong. As a first step, the Port of Colombo was to be improved and modernised to meet the needs of the shipping industry both domestically and globally. Accordingly, in 1999 the development and expansion of the Queen Elizabeth Quay as a BOT was handed over to a private sector consortium headed by P&O (Netherlands/Australia) and John Keells Holdings - a local blue chip conglomerate. This was the first time that the private sector became involved in port development activities and the consortium is referred to as the South Asian Gateway Terminals (SAGT). This project was expected to increase the then cargo handling capacity of the port by over 50 per cent and the total investment was valued at US$ 240 million. The salient features of this development project included: * Additional cargo handling capacity of over one million TEU's. * Construction of three new berths - each berth dredged to 14 metres to meet the needs of the largest container vessels. * Construction of a new/additional quay length/wharf of 940 metres. * Construction of a new container yard of 20 hectares with capacity for handling 27,000 TEU's. * Adoption of fast, efficient, innovative and professional services to meet the needs of customers and clients. * Reefer points 540 (container loading/unloading points) Work is also currently underway to develop the north pier of the port and would be completed by the end of 2002/early 2003. Sri Lanka relies on its principal port in Colombo for its international trade links. The port has the potential to create synergies leading to the expansion of economic activities centred on port, shipping and related activities, and has been geared to keep pace with the accelerated activity in the other sectors of the economy. Technological and structural changes in shipping, particularly containerization, have brought new opportunities and the Port of Colombo has established itself as a premier trans-shipment port for the south Asian region. Thanks to the PA Government's timely initiatives. For Sri Lanka to emerge as a premier maritime centre in the region, it is necessary to have a successful hub port complemented with the full range of ancillary services. The PA Government actively sought private sector participation in the development of port infrastructure. New equipment and greater efficiency have enabled a private container terminal operator at Sri Lanka's Port of Colombo to post a new handling record. Following the privatisation, the South Asia Gateway Terminals (SAGT) broke its own record when it handled 30,598 TEUs at the former Queen Elizabeth Quay (QEQ). According to a statement from the company, this is the first time that QEQ berths 4/5/6 have handled more than 30,000 TEUs in one month. The previous record of 28,002 TEUs was set in May. Container handling in October was up 58% over the same month in 1999. SAGT handled 70 vessels in October, of which three were new services to Colombo.Also in October, SAGT established a new 24-hour shift record of 1,767 TEUs. The company's productivity levels have improved with the introduction of a radio data terminal network (RDT) to vessel and yard operations. The operator has invested in equipment from Teklogix, and related software modules for Navis SPARCS yard and vessel planning systems, as well as training staff on using the new information technology tool. Initially, SAGT will use RDT equipment for wharf and deck controlling, yard position confirmations for receivals and deliveries, damage recording and seal checks, and the monitoring of refrigerated containers. The system is updated as terminal activities are performed, minimizing incorrect data input, paperwork, and also the need for voice communication between the planners and terminal staff. In March, SAGT plans to implement RDT in terminal trucks and rubber-tired gantry cranes with automatic position detection, when Stage 1 of the new terminal is expected to be ready. The terminal company is a consortium of Sri Lankan conglomerate John Keells Holdings, and partners P & O Netherlands and P & O Nedlloyd. Other shareholders include Evergreen of Taiwan, the Sri Lanka Ports Authority, the International Finance Corporation, the Asian Development Bank and the Commonwealth Development Corporation of the United Kingdom. The terminal operator's task is to redevelop and re-equip the container facilities at Colombo Port's Queen Elizabeth Quay and provide modern, efficient container terminal facilities benchmarked to international standards. The completion of the total project is scheduled for March 2003. Then, the QEQ will have a capacity of one million TEUs, placing it on a par with the world's most advanced container terminals. Before Sri Lanka began reforming port operations in 1995, its ports were costly and inefficient. Restrictive trade practices coupled with user-friendly labour regulations led to high terminal and labour costs. Colombo Port was open rather than terminal based, leading to inefficient operating practices and unnecessary costs for cargo handling and storage. As a result of all these problems, Indian exporters and importers, who share a large portion of total trade of Colombo Port, were suffering. There was no alternative for Indian traders to send their goods abroad through some other port. In 1997, the PA Government brought out the National Ports and Shipping Policy, committing to convert Colombo as the gateway port to South Asia. Colombo's share in global transshipment traffic increased. In 1997, the port handled 1.27 million TEUs of transshipment traffic. In the same year, Colombo attracted 67 per cent of Indian total box traffic. Colombo has emerged as the gateway port for India, and virtually for the entire South Asia. Now it has three dedicated terminals for main line vessels South Asia Gateway Terminal (SAGT), run by P&O Ports, Jaya Container Terminal (JCT) and Unity Container Terminal (UCT), run by the Sri Lankan Ports Authority (SLPA). (Source: Internet) |
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