Colombo Port in crisis: delays and rising costs

Delays are leading many cargo ships to bypass the port, causing economic losses for the country and higher costs for importers. Maritime authorities have reported two to three days delays in berthing due to low terminal capacity and obstacles in slow clearance operations.

Colombo (AsiaNews) – Colombo Port, Sri Lanka's foremost maritime hub, is facing a serious congestion crisis that is compromising its operations and international competitiveness.

Despite government directives last week to expedite container customs clearance, the situation remains critical.

Significant delays have led many cargo ships to bypass the port altogether, generating economic losses for the country and increased costs for importers, who ultimately bear extra demurrage costs and customs fees due to delays.

Port authorities currently report two-three days in berthing delay from lack of capacity.

According to Australia-based shipping experts Dushyantha Weerasekara and Manilal Samarasinghe, "the main cause of congestion is the availability of only three deep-draft berths at the Colombo International Container Terminal (CICT), while the East Container Terminal is still partially operational."

Such delays are pushing ships to opt for other ports, in India or Singapore, causing Sri Lanka to lose its competitive advantage.

“Although, there are multiple factors leading to congestion at the Port, strict inspection of cargo is also a major reason leading to disembarking delays,” port officials explained.

Goods from India, which normally reach Sri Lanka in eight hours, take up to 10 days to reach local markets.

In the past five to six months, about 25 to 30 ships bypassed Colombo, said Tuan Ghouse Arfin, president of the Customs House Agents and Traders Association, who also complained about slow customs operations, aggravated by staff shortages and stricter inspections.

This issue has led to wharf clerks having a hard time clearing consignments at prices quoted to clients as extra payments have to be made due to delays.

“Customs officials, who are required to work 24 hours a day, often work until 3 am and then resume at 8 am, accumulating overtime and increasing operating costs to clear the backlog," former customs superintendents Nihal Vithanage and Damith Punchihewa explained.

To overcome the problem, port infrastructures need to be expanded and customs operations reorganised.

“It is necessary to increase port capacity and customs inspection points," the former superintendents explained, specifying that demurrage charges at customs for delays range from 15,000 to 20,000 rupees per day (US$ 50-65), depending on the length of the container

Port congestion is also likely to have a direct impact on consumers, with a possible 20 per cent increase in import costs.

The Container Transport Owners Association (CTOA) reported that 800 to 1,000 vehicles are stuck at the port, with drivers forced to wait up to a week for customs clearance.

• sri lanka
• colombo port
• delays
• losses
• costs