Tuesday Nov 05, 2024
FT
Tuesday Nov 05, 2024
Thursday, 15 August 2024 05:48 - - {{hitsCtrl.values.hits}}
The Free Trade Zone Manufacturers Association (FTZMA) has called on the Finance Ministry to urgently approve and implement a proposed container clearing yard with a capacity of 3,000 containers.
This project, recommended by a 2020 Asian Development Bank (ADB) study, aims to address severe cargo congestion at the Colombo Port but has yet to receive the necessary green light from the ministry.
The call for action follows a recent meeting between FTZMA representatives and high-ranking officials of Sri Lanka Customs (SLC).
The discussion revealed that while the Colombo port releases around 1,400 to 1,500 containers daily and the Customs Department can currently clear only about 45% of them, equivalent to 600 containers.
These containers are then sent to three existing clearing yards: Grayline 1 Yard, RCT Yard in Orugodawatta, and Grayline 2 Yard in Grandpass.
Customs officials also highlighted that the proposed yard, which is based on a comprehensive feasibility study conducted in 2020, would significantly alleviate the country’s ongoing cargo congestion issues.
The study identified a 25-acre land in Kerawalapitiya, owned by the Urban Development Authority (UDA), as the ideal site for the new facility. This new yard would have a much higher capacity than the current combined capacity of the three private container yards, potentially holding up to five times more containers.
FTZMA insists on the urgent need for the project, citing that the current congestion is costing millions of rupees daily and causing significant delays in production schedules, particularly for companies operating under the Board of Investment (BOI) due to the lack of raw materials.
They claimed that the prolonged delays have also led to vessels bypassing Sri Lanka, further jeopardising the country’s export commitments and damaging its economic reputation.
The FTZMA suspects that interference from private cargo clearing yard owners may be contributing to the delay in the Finance Ministry’s approval of the project.
Despite acknowledging that Sri Lanka Customs is operating with a 30% staff deficiency, which hampers its ability to process goods swiftly, the FTZMA insists that the Government must prioritise commissioning the new yard to mitigate the ongoing congestion and address the undue delays in container examination.
“This is particularly crucial for managing perishable and freezer containers, which are currently subjected to the same delayed procedures as non-perishable goods, highlighting a significant gap in priority management,” they pointed out.
