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Speaking at an interactive forum organised by The Shippers’ Academy Colombo (SAC) in partnership with Sri Lanka Apparel Exporters Association (SLAEA) last week, Sri Lanka Ports Authority (SLPA) Chairman Dr. Priyath Bandu Wickrama noted that the sector aspires to become the leading contributor to the national economy by 2020.
“Today our revenue is at $ 330 million, handling 65 million tons. We have only close to $ 3 billion investment in the ports sector. We have to almost triple our targets during the next seven years,” he said adding that the authority is confident of achieving this through its seven year plan.
The plan, launched at a gala ceremony last July has already been implemented. “We are now trying our best to achieve each and every yearly target as set, and we will evaluate performance of all our employees including senior managers depending on the achievements made during the year.”
While all ports located in various parts of the country are to be developed to support the growth process, the Wickrama placed emphasis on the Colombo and Hambantota ports, which will be key in attracting investment and business.
CICT operational by August
Outlining some of strategies in the 14-point approach as in the 2020 plan, Wickrama noted that the Colombo International Container Terminal (CICT) of the Colombo Port is likely to be operational during the year, with work expected to be completed in five months.
Construction is now underway and the hope is to complete this as soon as possible due to the huge demand for deep berths in Colombo. Equipment is now being finalised. Contractor Hyundai Engineering and Construction Company plans to finish the project by June this year. “If we can do so, we can start operation in August this year,” Wickrama stated.
Multimodal transportation network
To support this, SLPA is also set to play a leading role in developing a multimodal transportation network with other relevant agencies in the near future.
Congestion, especially during peak-hours in Colombo, adversely affects container movements in and out of the port. “We are trying to eliminate this by creating a multimodal network especially by rail.”
Acknowledging that this plan is still at the conceptual level, Wickrama added that according to designs, a rail link is to be created connecting specific dry ports in the country. “Initially we will develop a rail link from Colombo port to the Peliyagoda cargo village and from there, there will be three more dry ports close to Colombo – in Rathmalana, Veyangoda and later to Anuradhapura or even Trincomalee.”
Work on internal roads within the Colombo Port is nearly completed as well. A step taken during 2013, this helps reduce internal traffic congestion during peak-hours.
Cargo village in Peliyagoda
“We have already commenced construction work on the cargo village in Peliyagoda to facilitate importers and exporters,” Wickrama said.
The purpose is to take all import and export containers out of the port, and create another area where all cargo related activities including delivery and pickup (even FCA – free carriers) is managed. This would further minimise container movements coming from the city to port.
“We are also planning to introduce a privilege card for best customers working with us,” he expressed. “They will get a separate green channel, separate facilities and a special pass to clear any service without hassle through a dedicated counter. We are now preparing the final documents to introduce the privilege card system.”
Separate building for SLPA
Hoping to ensure an integrated and efficient system in terms of the Ports Authority, plans are underway to construct a separate building for the SLPA.
Wickrama said: “In Colombo we currently do not have a proper building and our offices are scattered all over the port. Generally five to ten locations need to be visited for a specific purpose.”
In the new building, they are also trying to allocate some 200,000 square feet of space for customers to set up their offices. The office spaces will have a direct online link to the ports authority system ensuring better facility for those in the building.
Extending passenger terminal for tourism
In order to facilitate the expanding tourism industry, steps would be taken to extend the passenger terminal in the Colombo port. The current terminal is not sufficient to handle all the passenger vessels calling in Colombo. The length is said to be limited. “The hope is to extend the terminal and create the necessary environment for tourists.”
He stated that there will be another hotel project just in front of the port which the SLPA is planning to extend their support to, to further facilitate better service for the tourists. The extended and developed terminal will be linked to the hotel with a supporting bridge. “It will take some time, but plans and concepts are there. However the passenger terminal will be completed as soon as possible due to the demand from passenger ships.”
Calling tenders for west terminal
“Investors in the ports sector will be happy to learn that we will take action to call tenders at the appropriate time for the development of west terminal in Colombo,” the Ports Authority Chairman announced.
Three terminals are listed under the Colombo Port Expansion Project as the South, East and West Terminals. The former two are in place with its plans and for the latter, tenders will be called to build the west terminal in time.
“At the completion of all three terminals, the capacity will go up from five million TEUs to 13 million TEUs. There is provision to extend one more berth, adding an additional 2.4 million TEU capacity to the current 13 million TEU capacity; creating a total capacity of 15.5 million TEUs within the port of Colombo.”
CICT has the world’s largest container handling equipment guaranteeing best performance in its services. The East Terminal will be built with the same kind of equipment.
All this is likely to improve Colombo’s position with the introduction of new technologies and equipment which will improve efficiency as well.
Marketing strategies
He said: “It has been observed that the strategic location of Sri Lanka has potential for attracting business opportunities. With the additional value of cargo provided, we will successfully introduce investor oriented marketing strategies and volume oriented marketing strategies.”
The requirement to have a good marketing strategy comes with the development of infrastructure, creation of industrial zones and free ports, etc.
The marketing strategy will be divided in two – free zones and ports. A separate marketing strategy has been formulated to attract investors.
There are different marketing strategies for each region as well, for the likes of China, India, the Middle East and USA. “We have initiated a few steps and will look at expanding that and going out and promoting ourselves, and the opportunities we are going to create in the future.”
Responding to the question of why create so much capacity, Wickrama outlined that taking into consideration the Indian, East African and Middle Eastern growth, there is huge potential for Sri Lanka to develop its port.
“We were earlier the leading port in this part of the world; we lost that title due to lack of infrastructure and we now need to market ourselves,” he reflected.
Using government ties to attract volume
If done correctly, Sri Lanka can easily welcome east coast volume flows to Europe via its ports. A separate marketing strategy will be in place to attract those volumes.
He acknowledged that they are now discussing tying up with Bangladesh, Pakistan and East Africa to get business to Sri Lanka – to convert Sri Lanka as their transhipment hub and using government-to-government bilateral relationships to promote the idea. “Especially with Bangladesh and Pakistan, we are going to give a different structure to attract them initially.”
Shipping lines are working very closely with the SLPA, he maintained. “There are few new services popping up in this region in port related sectors, and many more services will operate within the region in time to come. We can get major shipping lines carrying over 18,000 TEUs to come to Sri Lanka.”
With the proper network the authority is going to introduce in the future, there will easily be a shift to port of Colombo or even Hambantota from other regional ports.
Diversifying business operations
In the rapidly expanding global maritime trade, SLPA has diversified its business activities in areas such as logistic service, infrastructure development, facility services and leisure industry by ensuring the development of required facilities for its core businesses of terminal development, operation of cargo and container handling activities.
SLPA, over and above its other operations is also trying to facilitate oil exploration process as well.
In Colombo we have already created a facility for this,” Wickrama said. “In the future, not only Colombo, Hambantota, Trincomalee and Kankesanthurai will play a big role in assisting this exploration work. We are trying our best to promote these ports as service providing centres.
We are also planning to go out and buy shares, get involved in terminal operation, terminal building and operations, consultancy services – go out and sell these capabilities in other regions as well,” he added.
Restructuring administrative methodologies
SLPA as a modern and efficient ports operator has already initiated the restructuring of its administrative methodologies and is looking at introducing advanced financial management systems to enhance efficiency and productivity of the services provided to stakeholders.
“This has been identified as an important aspect to have better connectivity with our customers.”
Introduced in 2013, 80% of the online connectivity network is now in place and is likely to be completed within the year. “After which you can communicate with us, without having to come to the port, but buy accessing us through an electronic gateway provided.”
The objective of SLPA is to transform Sri Lanka in to a strategically important maritime centre in the world. In realising this objective, an organisational culture that encourages employees has been pursued. Recognition has been given to officials and employees who develop new innovative ideas. This culture of quality has become a guideline principle as officials and employees within the organisation understood and subscribed to the continuous practice of standards of business within the work environment.
