Seventh Symposium (Presentation of Colombo : Sri Lanka Ports Authority)

Encountering the Global Challenges THE SLPA WAY

Sri Lanka, having a population of over 20 million with a literacy rate of about 95% depends on mainly on her shipping activities as a key component in the country’s economy. Though international trade is being carried out through five sea ports in the country, Port of Colombo is the largest and also the largest container Port in the South Asia Region. All sea ports are vested with the Sri Lanka Ports Authority(SLPA).

Due to the contemporary trends & future perspectives in the supply chain, the competitive dynamics in regional and global shipping has made a tremendous impact on carriers, ports and other related logistics.

Supply chain starts from the demand end, thus determining the stock needed at the final point and working backwards.
If we are talking of finished goods, the final supply to the markets is more likely through a “Distribution Center” -DC- Warehouse.
With globalized supply chains, the number/location of DCs will depend on the geographic spread of the end user. It’s certainly important to locate the DCs close to effective transport links. Hence transshipment Hubs will certainly play a major roll at all times in sea transportation.



Trend in building Mega Ships and lines using alliances and consortias as a means of achieving greater market reach has demanded the evolvement and development of Mega Carriers and Mega Ports. These huge ships cannot deviate from the main route and go into ports which don’t have sufficient depths, crane reach hence the cost factor.


It’s now identified that there will be a at least 5 mega hubs in the East-West beltway located at Far East, SE-Asia, West Mediterranean, Caribbean and Central America.
Ships carrying over 9000 TEUS are already riding the waves.

Port business can be lost due to four factors:-

・ Lack of Capacity

・ Harbour Restrictions

・ Poor Productivety

・ Lack of Marketing

Colombo Port under the Sri Lanka Ports Authority handled 2.2 million TEUS (24.5 million metric tones), 2.8 million metric tones of General Cargo and 04 million metric tones of Petroleum in 2004.

Currently, the container volume in Colombo is growing at a rate of 12%.


“What are Colombo’s Plans to cope with these Universal Challenges? ”

Short Term-

Enhance capacity & infrastructure to cater to large vessels which will be cruising in the near future. This project will complete by 2007.

・ Lengthening the terminal quay wall to accommodate larger vessels of and over 350m. LOA.
・ Filling up areas to obtain more yard capacity.
・ Procuring additional quay cranes to handle super post panamax vessels.
・ Dredging the Harbour Basin further to increase the depth.

Long Term-

Construction and development of “Colombo South Harbour”

Phase I - New breakwater and 3 container terminals to be built in stages.
Phase I has 3 stages, each stages having a 1200 meter quay wall
and a capacity of 2.4 million TEUs.

Total of 3 terminals with 7.5 million TEUS having a harbour depth of
18m

Schedule

Stage I   - 2009
Stage II  - 2016
Stage III - 2021

Phase II- Extend breakwater and build another terminal of 1200 m. quay
length with 2.4 million TEUs

Schedule

- 2025
“AIR-SEA HUB”

Guide lines are being drawn up to set up an AIR/SEA Cargo Logistic Centre.
This logistic center will have independent direct access through to Air Port and Sea Port facilities.

This facility will be e-controlled and geared with warehouses, a quarantine unit for ＭＣＣ Operations and Entrepot Trade.




“NET WOKING”

Under the Sister Port concept, we could look at exchanging of views and develop the networking linking ;

- Infrastructure Development & Maritime Policy
Possibility in investment in each country’s ports, by way of share holding etc., Maritime sector development, engagement of marine fleet etc., could be considered through bilateral agreements.

- Joint Venture Partnerships
Attracting shipping lines with Joint Terminal Agreements, thus securing and enhancing cargo volumes.

- Cruise Shipping
Last year, more than 10.9 million took to cruising holiday. By
2010 it is expected to grow up to 17 million.

Asian Region offers an exiting and diverse mixture of cultures,
scenic beauty and variety of cuisine, all of which can be enjoyed
in a friendly atmosphere of tropical splendour.


Sri Lanka Ports Authority

7TH Symposium of International Network of Affiliated Ports (INAP)
October 24-26, 2005, Colombo Sri Lanka