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The decision aims to attract fast growing transshipment industry in Eastern India, Bangladesh and Myanmar, to the Colombo port. Ports Authority said the transshipment volumes at East Indian ports and Bangladesh ports have been increased during last two decades though Singapore still claims the biggest portion.
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The Authority said the transshipment activities of several deepest ports namely Mundra, JNPT, Hazira and Kochin in Western coastal of India have now divided among several ports. The Authority however says the port of Vizhinjam has a high potential to obtain a significant portion from the transshipment handling market of Western India, Pakistan and in Gulf region.
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Vizhinjam International Seaport is a proposed port by the Arabian Sea at Thiruvananthapuram in India. The SLPA warns the move would negatively effect transshipment activities of the Colombo port. “In 1995, the SLPA granted 10 percent discount on transshipment handling charges and aimed to get the attraction of transshipment shipping market of Eastern India and Bangladesh,” Ports Minister Arjuna Ranatunga said.
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“That was a good decision which was taken by SLPA at that time. However today we extend the facility to Myanmar as well.
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” In 2014, the Colombo port has handled 2,108 of transshipment containers which belong to the Myanmar. However the volume has up to 14,687 containers in 2015. Sri Lanka Ports Authority said a feeder service between Colombo port and Yangon port of Myanmar was started recently in order to strengthen the effort. The transshipment volumes in Myanmar have notably increased with favorable political environment that pushed the government to observe new investment opportunities.
It will be useful if the author will take the time to clarify how the Vizhinjam International Seaport will “negatively effect transshipment activities of the Colombo port” and in particular whether the competition that it offers will be economical or logistical. It would also be nice to know what the relationship between Vizhinjam and the 10% discount offered to shipping from Myanmar is.
Colombo competing with Indian ports for traffic across the Indian Ocean is quite understandable but Colombo competing with India form traffic across the bay of Bengal is not so easy to understand. Would not Trincomalee or any other port on the islands Eastern coast be better positioned to compete for traffic across the Bay of Bengal?
The article is also not very informative on the current state of development of the Vizhinjam International Seaport and its developmental model which will help assess its competitiveness in relation to Colombo. Without this an other relevant information the 10% discount appears to have little to do with competition and seems much more useful as a margin that will facilitate the building of economic links within the shipping sector.
Whatever it may be the public deserves to be taken into confidence if it is to remain supportive of the government. The failure of the government to reduce electricity charges and fuel prices despite the drastic reduction in global prices has SIGNIFICANTLY detracted from its credibility already.
I think the Ports Authority should conduct a proper study before jumping into conclusions…