By: Staff Writer
March 10, Colombo (LNW): The Sri Lankan government has designated the Eastern Container Terminal (ECT) at Colombo Port as a special project, following approval from the Cabinet of Ministers on March 21 2024.
This decision aligns with a 2021 Cabinet resolution to develop the terminal in phases under the complete ownership of the Sri Lanka Ports Authority (SLPA). The construction contract has already been awarded, and work is currently in progress.
The procurement process for acquiring cranes has been successfully completed, ensuring that the necessary infrastructure is in place to enhance the terminal’s operational capacity. Additionally, various tax incentives granted to private terminal operators and service providers under the Strategic Development Act and Board of Investment Law will be extended to ECT.
Once completed, the terminal will feature a 1,400-meter-long jetty, enabling the simultaneous berthing of three large vessels.
A total of $585 million has been allocated for the terminal’s development, with China Engineering and Access Engineering appointed as construction contractors.
ECT will be equipped with 12 gantry cranes and 40 transfer cranes, spanning a container yard of approximately 75 hectares. The terminal is designed to handle up to three million containers annually and will operate as a semi-automated facility incorporating digital technology.
Despite government commitments to commence operations by July, delays persist. Shipping lines and ship agents have raised concerns about inefficiencies at the port, particularly regarding inter-terminal trucking delays during peak hours.
This congestion has led to operational slowdowns, with approximately 30,000 containers currently awaiting transfer between terminals.
If these delays are not addressed, shipping companies may opt for alternative routes, incurring additional costs due to extended waiting times.
The Chairman of the Ceylon Association of Shipping Agents (CASA), Shano Sabar, has emphasized the need for immediate intervention to improve port efficiency.
Infrastructure and Equipment Challenges
A significant contributing factor to delays is the deteriorating road conditions leading to the container yard. The port’s container movement rate has dropped to fewer than 20 moves per hour—well below the optimal 30 moves per hour.
Addressing these infrastructure challenges is crucial for attracting higher shipping volumes to Colombo.
Another pressing issue is the shortage of essential equipment. The ECT, originally slated to be operational by mid-2024, has faced setbacks due to delays in acquiring necessary machinery. Previously awarded tenders were canceled by the current administration, further complicating the process.
One critical requirement for smooth operations is the use of straddle carriers, which transport containers between the quay and yard efficiently. Although tenders had been issued for twin-lift straddle carriers capable of handling two twenty-foot equivalent units (TEUs) simultaneously, they were later revoked.
Industry experts warn that alternative solutions, such as relying solely on prime movers instead of straddle carriers, may not be feasible and could result in severe logistical challenges. Authorities are now exploring cost-effective alternatives, including new procurement processes.
However, if the government proceeds with re-tendering and ordering straddle carriers now, it could take up to 14 months for them to be manufactured and delivered, potentially causing further delays.
The ongoing challenges in bringing ECT online pose a significant risk to Sri Lanka’s position as a key maritime hub.
If the commissioning of the terminal is delayed further, international shipping lines may divert to competing ports, such as the Vizhinjam Port in southern India, which is managed by Adani Ports and also oversees the West Container International Terminal (WCIT).
Addressing these issues promptly is essential to ensure the successful completion and operation of the ECT, reinforcing Colombo’s status as a strategic port in the region.
