ECONMYNEXT – Sri Lanka’s state run container terminals in Colombo has grown its container volumes in the last quarter of 2015, arresting a trend that began with the entry of a Chinese owned terminal, a top official said.
Chairman of Sri Lanka Ports Authority said the management has started a program to cut costs and win new business in a bid to improve profits at Sri Lanka Ports Authority, which is burdened by loans taken to build a port in Hambantota.
"In October we arrested our decline and we are showing a growth in revenue as well as in volume," SLPA Chairman Dhammika Ranatuga said.
Sri Lanka’s existing SLPA and South Asia Gateway Terminals owned by listed John Keells Group lost market share to after the Colombo International Container Terminals (CICT), a Chinese state-run company opened for business in 2014.
With a slowdown in Indian and Pakistan traffic, SLPA and SAGT later also lost absolute volumes.
SLPA’s Jaye and Unity terminals which handled up to 55 percent of Colombo’s total volumes in January 2014 saw market share drop to 39 percent by August 2015, while CICT went up from 6.6 percent to 33.9 percent, with some business apparently shifting from both older operations.
By December SLPA has boosted its share to 43.4 percent. In 2015 Sri Lanka’s Colombo port had handled 5.185 million containers up 5.7 percent from 2014. Import-export volumes were up 8.1 percent to 1.217 million and transhipment volumes were up 4.9 percent.
Ranatunga said he was in talks with the heads of both SAGT and CICT to jointly market Colombo port in a bid to boost business.
He has also brought it zero-based budgeting in a bid to make SLPA more cost efficient. (Colombo/Jan18/2016)