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World container demand leaves Sri Lanka in the lurch
POSTED: 10:05 a.m. EDT, May 16,2007
Because of the huge demand for container capacity, Sri Lanka is being left behind as the country's exporters hunt every week for 600-650 TEU for Europe that just isn't there, says Sri Lanka Shippers Council chairman Jayanath Perera.
Speaking to the Colombo Sunday Observer, Mr Perera said lack of space has created a severe demand for shipping space resulting in rate increases to US$300 per TEU.
Some shipping lines have withdrawn Sri Lankan services completely because conditions are more attractive elsewhere. Hanjin Shipping, which operated two services to Europe, has pulled out one. "K" Line and UASC were Hanjin's joint partners. Norasia with Zim has also withdrawn its weekly Europe service.
Discouraging the ocean carriers is the congestion and delays at the Port of Colombo, resulting from inadequate infrastructure and a lack of cargo handling facilities. The badly needed Colombo South Harbour Expansion Project will not be ready until 2010.
Meanwhile India's Jawaharlal Nehru and Cochin ports have upgraded tremendously and now pose a threat to Colombo status in the major port league.
"Shipping lines prefer to call on ports equipped with better facilities," Mr Perera said. "India has developed its ports in the last three years ago, but we have failed to develop ours."
The time spent on end-to-end container cargo clearance averages 24-36 working hours at Colombo. Delays in container and truck turnarounds have increased from two hours in 2004 to eight hours today due to traffic congestion and increasing land use restrictions, he said. |
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