Sri Lanka’s Colombo Port sees an increase in oil sales
The Morning: Colombo Ports have seen an increase in oil sales in recent weeks as vessels come in for refuelling to take the longer route avoiding the Red Sea, The Daily Morning Business learnt.
Speaking to us, Sri Lanka Ports Authority Chairman Keith Bernard said there had been an increase in the number of vessels refuelling at the oil bank at the Jaya Container Terminal (JCT) as vessels take the longer route around South Africa.
According to Bloomberg, Colombo is one of the ports providing an option for refuelling vessels as the vessels are taking the longer route to avoid the Red Sea situation.
The Red Sea shipping crisis is making waves in Singapore as the disruption to global shipping patterns has pushed fuel sales at the world’s busiest ports by 12% in January.
That’s the second month of sharp gains as the confrontation in the region sends vessels scrambling to top up fuel at the Asian hub.
“Demand in Singapore has increased as it’s almost the last stop before heading to the Indian Ocean,” ship-refuelling consultancy SDE International Executive Director Simon Neo told Bloomberg, adding that other ports such as Fujairah in the United Arab Emirates and Sri Lanka may also be options for rerouted vessels.
SLPA data showed that by mid-January, the Colombo Port had experienced an 80% increase in volume, handling nearly 200,000 containers due to the Red Sea crisis.
According to Xeneta, an ocean and air freight data firm, about 90% of the usual container ship capacity passing through the Red Sea and Suez Canal has been rerouted around the southern tip of Africa so far in 2024, while the rerouting of vessels has increased the transit time of vessels by 30%.
OSL take:
Sri Lanka’s strategic positioning in the Indian Ocean in close proximity to the international maritime lanes has continuously increased the growth of the country’s maritime industry. The expansion in the maritime industry has resulted in the overall growth in opportunities in the ports, shipping and logistics sectors. The rerouting of ships due to the ongoing Red Sea crisis has resulted in a further increase in vessels calling at the Colombo Port. It is in such a backdrop that the oil sales in the port has seen an increase. The supply of oil and other necessities of the vessels that call at local ports has become an emerging business opportunity. Sri Lanka’s target of becoming a maritime hub in the South Asian region has resulted in the Sri Lankan government looking at further developing the key ports around the country as well as other sub ports. The development work in the ports sector has also presented a host of new business/investment opportunities. Given the growing business potential in Sri Lanka’s maritime industry, foreign businesses/investors could confidently explore the growing opportunities in the industry.
| Article Code : | VBS/AT/20240228/Z_1 |