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Wednesday February 1st, 2023

China terminal handles 40-pct of Sri Lanka’s Colombo port box volume

ECONOMYNEXT- A terminal controlled by China’s CM Ports said said it handled 2.9 million containers at Sri Lanka’s Colombo Port,up 8.6 percent from a year earlier which was 40 percent of total volumes in 2019.

Colombo International Container Terminals (CICT) said its volumes had growth four-fold or 322 percent over the past five years, from 686,639 TEUs handled in its first year in 2014.

CICT’s performance helped the Port of Colombo increase its total throughput by 2.6 per cent in 2019, despite the slower growth of maritime transport in the region.

CICT said ultra large container carriers of a size that only CICT is capable of handling, had contributed approximately 72 per cent to the volumes the terminal achieved for 2019.

“We believe that our unwavering commitment to efficiency and other key performance indicators coupled with our deep water capacity enabled us to grow faster than some of the other terminals in the region,” CICT Chief Executive Jack Huang said in a statement.

“True to our mandate, we continue to explore ways of maximising capacity utilisation to generate growth for the Port of Colombo.”

CICT said it was named the best container terminal in Asia in the Under 4 million TEUs category at the Asian Freight, Logistics and Supply Chain (AFLAS) Awards for the third consecutive year in 2019 .

In 2019 CICT commissioned a 1.5 million US dollar dangerous goods storage facility in 2019 with an investment of 1.5 million US dollars which it said was the most advanced in South Asia.

CICT had also added two new mega quay gantry cranes, six new rubber-tyred gantry cranes and 12 prime movers to enable the handling of 22,000+ TEU vessels.

The use of information technology has also helped to cultivate better customer loyalty, the CICT said.

The firm said it had also converted its entire fleet of diesel operated rubber-tyred-gantry cranes to electricity have zero carbon emissions in 10 million dollar program.

As a result, CICT has achieved a 45 per cent reduction in carbon dioxide emissions and a 96 per cent reduction in diesel consumption.

CICT is the only deep water terminal in South Asia equipped with facilities to handle the largest container vessels afloat.

In its last four full years of operation, CICT has brought some of the largest vessels plying the Asia-Europe routes to Colombo.

Of these, Milan Maersk (20,568 TEU), EMC Ever Glory (20,388 TEU), MSC Maya (19,224 TEU), Mogens Maersk (18,300 TEU), MSC New York (16,652 TEU), CMA CGM Marco Polo (16,020 TEU), Edith Maersk and EMC Thalassa Hellas (each 14,000 plus TEUs) and their sister vessels are now regular callers at CICT. (Colombo/Dec31/2019)

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Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

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Sri Lanka bill auction hits pothole after 2025 bond spike

ECONOMYNEXT – Sri Lanka sold only 45 billion rupees in Treasury bills at Wednesday’s auction after offering 120 billion rupees, data from the state debt office showed, amid market confusion over a spike in a two year bond at an earlier action.

30.1 billion rupees of 3-month bills were sold at 29.91 percent, unchanged from a week earlier after offering 60 billion rupees for auction.

5.1 billion rupees of 6-month bills were sold at 28.72 percent, flat after offering 30 billion.

10.3 billion rupees of 12-month bills were sold at 27.72 percent after offering 30 billion.

Phase II subscriptions have been opened.

The market was foxed after the 2025 bonds were accepted at sharply higher yield than market on January 30, dealer said.

There was further confusion as the there was an outright purchase of 2025 at around 29 percent earlier in January.

Some investors speculated that the authorities were trying to drive more buyers towards short end bonds as bill volumes were getting larger. (Colombo/Feb01/2023)

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Sri Lanka services exports down 5.9-pct in 2022

ECONOMYNEXT – Sri Lanka’s services exports were estimated to have fallen 5.9 percent to 1,876.3 million US dollars, the island’s Export Development Board said.

Services exports estimated is made up of ICT/BPM, construction, financial services, transport and logistics.

There are more than 500 ICT companies, the EDB said.

Sri Lanka’s merchandise exports were up 4.6 percent to US dollars 13.1 billion dollars in 2022 from 2021.

Sri Lanka’s goods exports are slowing amid lower growth in Western markets. (Colombo/ Feb 01/2023)

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