Sri Lanka Ports Authority expects 40% revenue surge with East Container Terminal
The Morning: Despite the reduction in international freight rates in 2022 and 2023, Sri Lanka Ports Authority (SLPA) anticipates 40% revenue increase following the construction of the East Container Terminal (ECT) which would be completed by mid-2024, The Daily Morning Business learnt.
Speaking to The Daily Morning Business, SLPA Chairman Keith D. Bernard said: “Currently, the Ports Authority is generating a handsome amount of foreign exchange. With the East Container Terminal ready within about half a year, that will definitely increase or expand the capacity of the Sri Lanka Ports Authority by at least about 3 million TEU (Twenty-foot Equivalent Unit) per year, and that will most certainly bring much more revenue to the country.”
Moreover, In the future, the ECT will bring larger vessels which were not able to come to Colombo in earlier instances, making the Colombo Port one of the most important and busy hub ports in the region.
Compared to 2021, the freight rates, at international-level, have declined because there has been excess capacity in the shipping lines, which has affected the Colombo port as well.
According to the Amtrak report, in 2024, they anticipate an annual revenue growth of about 2.4% in the industry.
According to SLPA, the said Terminal will be the first semi-automated terminal in the port of Colombo. Mainly, the yard area equipment will be with the latest technology. The new cranes will be about 55 meters high when compared to the old ones which are only 45 to 50 meters high and will be able to reach about 26 boxes.
Moreover, a total of $ 585 million has been allocated for the development of the terminal through financial provisions by the SLPA. China Engineering and Access Engineering of Sri Lanka are the appointed construction contractors.
He explained that Colombo port, the hub of the region is also looking at the future plans for the port such as construction of the West Container Terminal under the Adani group, and SLPA looks forward to the Colombo North Port development.
According to the World Bank and Standard and Poor’s Market Intelligence, Sri Lanka’s Colombo Port has been ranked 22 in the world and first in South Asia in 2022. However, SLPA anticipates being ranked in the 14th position in the next two years,” Bernard said.
OSL take:
Sri Lanka’s maritime industry, especially the ports, shipping and logistics sectors, are on a constant growth path resulting in the expansion of business/investment opportunities covering these sectors. Sri Lanka’s geographical positioning in the Indian Ocean, the close proximity to international maritime routes and the many trade agreements as well as trade concessions enjoyed with other countries have helped the expansion in the local maritime industry. Sri Lanka’s development programmed also includes the development and expansion of Ports, shipping and logistics sectors in the ports covering all parts of the island. The port of Colombo, the northern port of Kankesanthurai and the eastern port of Trincomalee are three of the key ports in the country while the government of Sri Lanka is also focused on developing ports in other areas as well. The development in the maritime industry has also supported other key economic sectors including trade and tourism. With Sri Lanka working towards becoming an emerging business destination in the South Asian region, the opportunities in the maritime industry would see a further expansion. Given the growing business potential in Sri Lanka’s maritime industry, foreign businesses/investors could explore the expanding opportunities in this industry.
| Article Code : | VBS/AT/20231212/Z_5 |