Shipping

Will Chennai port pose threat to Lanka?

Hiran H. SENEWIRANE

With the expansion of the massive sea port in India, the hub port of Sri Lanka is facing a challenge in shipping industry.

The port authorities are now doing the necessary calculations as to how to meet this alarming situation in the future since the proposed Indian sea port is going to be one of the world famous.

The threat comes from the South Indian Port of Chennai, which has just called for fresh bids to build a new deep-water container terminal. its sources said.

The proposed 'mega' box terminal project is projected to handle four million TEUs (twenty-foot equivalent units or containers) a year with construction work expected to start in the next 2-3 years. The estimated cost of the terminal is around 750-760 million dollars and it will be developed on a build-operate-transfer basis under a 30-year concession, Indian news reports said.

They quoted officials at Chennai Port as saying that the project is in line with its long held plans for Chennai to become the container hub of the Indian east coast, its sources said.

Chennai's existing container facility run by Dubai Ports World handled 885,000 TEUs during 2006-07 with volumes rising by 20 percent a year.

Sri Lankan shipping industry officials said plans by India to develop its own ports could threaten Colombo's prospects as it is already years behind schedule in building new capacity to handle the 'mega' container ships that are now being deployed on the trade routes.

Most existing port terminals in the south Asian region cannot handle the new generation of box ships.

They also worry that the proposed deep-water container terminal at the port of Chennai could cause Colombo to lose transshipment traffic. Colombo's cargo catchments are considered to be South India and Bangladesh, its sources said.

Bids that were called last year were cancelled earlier this year with the authorities saying fresh bids would be called by July or August but the shipping industry is worried that there is still no sign of movement in the controversial project.

However, plans to build a new deep-water port next to Colombo have only now got under way with the harbour basin being dredged but a contract to build the first container terminal in the harbour has been delayed.

SLPA salary Com. Report out

The report prepared by the Salary Committee established upon directive of the Cabinet of Ministers based on the new salary structure of Sri Lanka Ports Authority was presented to the Acting Chairman, Priyath Bandu Wickrama by the members of the Committee.

The Committee consisted of members from Trade Unions and the Management on equal basis had carefully studied appeals submitted by employees. The New Salary Structure that implemented with effect from 01.01.2006 is considered as a road map of productivity enhancement and it was noted that a special priority has been focused towards employee performance evaluation process.

The Salary Committee was formed on a Cabinet decision as a result of Cabinet Memorandum submitted by the Minister of Ports & Aviation, Irrigation and Water Management Chamal Rajapaksa.

Dhanusha Marine Lanka Exports (Pvt) Ltd in Fullerton Industrial Estate, Kalutara signed an agreement with BOI recently for a project worth Rs. 25m to develop and expand the Export Market in Europe and Middle East for Fibre Glass Boats, Trailer Covers and Furniture where a massive potential market is identified. The Managing Director G.S. Fernando and the Directress P.G. Nilmini Fernando of Dhanusha Marine Lanka Exports (Pvt) Ltd receiving the BOI Agreement from the Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama. - Picture by Dilwin Mendis, Moratuwa special correspondent