Despite recent efforts by Sri Lanka Customs, the Colombo Port faces severe congestion, causing delays and financial strain on stakeholders. As of January 16, 1,615 containers were released from terminals, but only 1,337 exited the port, illustrating the bottleneck. The government’s 24-hour customs operation initiative has yet to deliver tangible improvements.
Key Challenges
Persistent Inefficiencies
While container handling at terminals has improved, delays in customs clearance and insufficient staffing persist. In 2024, the port handled 7.7 million containers (a 12.3% increase) with growing transshipments to the Middle East. However, inefficiencies are forcing shipping lines to bypass Colombo, harming its reputation as a regional hub.
Stakeholder Struggles
Importers face demurrage charges, customs fees, and transportation delays, while truck drivers endure poor working conditions and long wait times. The backlog also disrupts the supply chain for export processing, exacerbating financial losses.
Inadequate Infrastructure and Resources
The port operates with only two scanners, and customs typically closes by 3 a.m., far from the promised 24/7 schedule. Some shipments take up to eight days to clear, despite originating from nearby locations like India. Internal disputes among stakeholders and political factors further worsen the situation.
Export-Import Imbalance
Export containers face significant delays due to priority given to imports by a private terminal operator. Exporters, who pay standard fees for port access, see their rights violated, causing disruptions in foreign exchange earnings and national output.
Short-Term Solutions
24/7 Customs Operations
Customs, along with inspection authorities like the Food Control Department and Quarantine Services, must operate round-the-clock until the backlog clears.
Emergency Resource Allocation
Deploy additional resources for inter-terminal trucking and container storage, including establishing secure off-site depots.
Incentives for Transporters
Short-term incentives will have to be encouraged transporters to move released containers out of the port promptly.
Improved Coordination
It has to facilitate better communication between customs and inspection agencies to streamline clearance processes.
Long-Term Solutions
Capacity Expansion and Modernization
Increase inspection points, upgrade technology, and adopt best practices from other Asian ports. Enhanced use of intelligence tools and blacklisting non-compliant traders can boost efficiency.
Systematic Improvements
Establish a mechanism for real-time communication between customs, industry stakeholders, and government organizations to prevent recurring issues.
Strategic Policy Review
Analyze recurring and seasonal port challenges, as well as regional policy impacts, to proactively mitigate congestion.
Cultural and Operational Shift
Encourage a paradigm shift in business practices within customs and port operations, fostering a more business-friendly environment.
Consequences of Inaction
Failing to address the congestion threatens Colombo’s status as a key logistics hub. Delays could drive foreign investors away, while inefficiencies risk long-term economic damage. Industry experts argue that these systemic issues could have been resolved without involving President Anura Kumara Dissanayake, who recently convened a top-level meeting to tackle the crisis.
Lessons from the Past
Port congestion is not new to Colombo. Previous crises were mitigated through coordinated efforts between customs, the Shippers Council, and industry leaders. Revisiting these solutions and adopting international best practices are crucial to restoring Colombo Port’s position as a vital regional and global trading center.
