Tugboats are crucial to any seaport’s operations. Large container ships, sometimes longer than 350 meters and stacked with thousands of tonnes of goods, cannot maneuver themselves precisely enough to dock safely. So, when a ship approaches a port, it turns off its engines and calls for the tugboats that then guide it to its berth. The tugs also ferry ships out of harbors when it is time to leave. Inadequate tugboat services lead to slower ship berthing and un-berthing operations, and these delays cascade through the port and decrease overall efficiency.
The Port of Colombo (PoC) currently operates seven tugboats, but many sources familiar with the local shipping industry have questioned the effectiveness of the port’s tug operations.
Multiple sources told The Daily News that sub-par tugboat services are hampering the performance of the PoC.
“The port is currently in danger of losing its position as the busiest harbor in South Asia due to some of the mediocre services it provides,” said Sumith Senanayake, a longtime ship captain familiar with the PoC’s operations.
While the PoC is considered essential to Sri Lanka’s economic development, it is currently not performing as well as it could be. The shipping sector’s productivity is not increasing satisfactorily, as the PoC is reportedly operating at 70% of maximum capacity.
“The shipping industry is at a crossroads. We must develop our capabilities or be surpassed by our neighbors,” Senanayake continued.
After posting a growth rate of 14% in 2014, the PoC grew by a meager 6% last year. The Jaya Container Terminal (JCT), one of three terminals and the only one managed exclusively by the Sri Lanka Ports Authority (SLPA), reported making losses in 2015.
It must be mentioned, however, that 2015 saw a decrease in global maritimecommerce volume. Singapore, one of the three bestports in the world, saw an 8% decline in output in 2015. Indian ports, moreover, as a whole grew a measly 2% last year.
Despite the international shipping downturn, the PoC is in no position to rest on its laurels as the busiest port in the region, especially as the Indian government has recently approved a committee to review its shipping and berthing operations with the hope of streamlining and improving them.
“Colombo’s port services are currently substandard. Right now it is relying on its location to maintain its business,” said Senanayake, who explained that ships originating in the Red Sea save between four or five hours by docking in Colombo rather than India. Given the high prices associated with running giant container ships, fewer hours spent sailing can equate to thousands of dollars in savings.
The savings depend, however, on the efficiency and fees of the PoC.
Challenges Facing the Port
Though the PoC was one of the first major shipping hubs to fully embrace containerization, its aging fleet of tugs is reportedly responsible for providing slow services.
“The SLPA’s tugboats definitely need to be modernized and improved,” said Rasika Hettiarachchi, another veteran ship captain.
“Our members work on old tug boats that need repairs,” said Chandrasiri Mahagamage, General Secretary to the All Ceylon Ports General Workers Union.
Senanayake was less charitable in his appraisal of the fleet. “The tugs are old, outdated, and not strong enough for the tasks they must perform. Furthermore, the number of tugs is inadequate.”
Dammika Ranatunga, Chairman of the SLPA, requested The Daily News seek comments on the tug situation from Harbour Master R.A. Jayawickrama.
Jayawickrama argued that the tugs themselves are in excellent condition. “The Tugs in Colombo are between ten and twenty years old and in very good operational condition with regular planned maintenance.”
He also said that there are currently few delays to speak of, a claim that many sources took issue with.
Gayan Silva, another sea captain, explained that the lackluster tug and pilot boat services constantly delay container ships.“Service generally takes longer in the PoC than in the world’s top ports,” he said, while adding that the waits can cost ship owners dearly.
The lengthy turnaround times partially negate the savings in fuel and port fees that owners can expect by docking their ships in Colombo. For example, the use of an 80 tonne tug costs $2,880 in Colombo, whereas the same service costs $14,717 in Singapore.
“The PoC has extremely competitive rates, and this makes it an attractive port. But the long waits might start driving customers away, especially if India improves its port operations,” said Senanayake.
“The charges are very reasonable compared to regional competitors, but we cost owners savings because of the number of tugs and the amount of time taken for each maneuver,” said Hettiarachchi.
“For instance, if they use two tugs in Singapore, here we use three tugs. And then if Singapore takes maybe 45 minutes to perform a maneuver, we would probably take 90 minutes. If you compare the costs, even though our rates are low, we don’t really save people too much money,” he added.
Though Colombo marine pilots are considered as some of the best in the world, they must take huge risks to make up for delays due to their deficient equipment. Bad accidents have been avoided thus far.
According to a recent study on the PoC, marine pilots completed 10,954 acts of pilotage in 2015, which add up to about 29 per day. The optimal number of daily piloting maneuvers is closer to 35, and the disparity in these figures can be attributed to the following delaying factors: berth availability, tug availability, and inclement weather.
Faster, more powerful tugs would improve both berth and tug availability, as they would take less time to perform tasks and decrease turnaround times for container ships. Larger tugs, moreover, would allow the PoC to operate in adverse weather conditions.
According to the same study, 22 whole pilotage days were lost last year due to bad weather conditions. The strong winds during the monsoons make operating the current fleet unsafe, but stronger, heavier tugs can function in very windy environments.
“80 tonne tugs can manage in 30 knot winds. This is crucial to maintaining port services during the monsoons. Ports keep customers by limiting delays, and we should pursue anything that can help us save time,” added Senanayake.
The SLPA is trying to alleviate the pressures on the current tug fleet. “The SLPA is in the process of chartering two modern tugs through an international bidding procedure. The process of identifying the best financially viable model will be followed to obtain them,” said Jayawickrama. He did not specify how large the chartered tugs would be, though reports have stated that the tugs will be 65 tonnes each.
Both data and working knowledge favors tugs of 80 tonnes or more, as they are more powerful, efficient, and safe than lighter boats. Furthermore, larger tugs can accommodate the ever-expanding container ships that sail the world’s oceans.
The SLPA’s seven tugboats are all between 45 and 65 tonnes, according to Jayawickrama.
It must also be noted that several regional ports have recently made arrangements to get big, modern tugs that will improve their services.
“There is nothing wrong with 65 tonne boats, but they will not improve efficiency or save time. No experienced mariner will tell you that 65 tonne tugs are the best option for Colombo. The SLPA is patching things up, but the PoC needs a permanent solution,” Senanayake proffered.
How to Proceed
Ideally, the SLPA would be able to buy new tugs to supplement its aging fleet. This is, however, currently not in the cards due to the high costs of tug boats. Because of the exorbitant prices, the SLPA has turned to other methods for procuring the equipment it needs. For the experts consulted, however, its current plan to lease two medium-sized tugs is simply not good enough.
“I would like to see the Port Authority pursue public-private partnerships to improve the tug fleet. That way, private companies will manage the towage operations while the SLPA plays more of a landlord role,” said Hettiarachchi.
A public-private partnership seems like a good option, as it would alleviate the pressure on the SLPA to make substantial investments in the tugs. The private investors would hold responsibility for providing towing services and maintaining the fleet. Furthermore, the port would be able to charge for the use of tugs in order to generate revenue.
Public-private partnerships have proven effective in the PoC, as South Asia Gateway Terminals (SAGT) and Colombo International Container Terminals (CICT), two of the port’s three terminals, are administered by private companies and have performed well.
This makes it all the more puzzling why the SLPA reportedly rejected a deal to turn over tug operations to KOTUG, a Dutch towage operator.
The deal was allegedly a 50-50 split between KOTUG and the SLPA for a 150 million dollar contract to provide six to eight modern tugs within ten years.
“Though many companies would be happy to work out a deal to provide tug services in Colombo, not many would give 50% to the public partner. This was an excellent opportunity,” said Senanayake.
By signing the deal, the SLPA would have received $75 million to improve and modernize the PoC. Likewise, because it would be receiving state of the art tugs, the PoC would become more efficient and decrease berthing and unberthing times without assuming any financial risk, according to Senanayake.
To properly run a port, equipment, technology, and logistics must properly harmonize. If one procedure takes longer than it should, the delay gums up the port’s operations, causing increased waits and decreased efficiency.
It appears that, at this point, the tugboat services are out of sync with the rest of the port’s procedures. If the PoC is to be a central instrument in Sri Lanka’s economic development, it must offer world-class service at competitive rates, said Silva.
“The port’s business depends on the satisfaction of ship owners. If they are satisfied and can save time by coming to Colombo, we will do well. It should be our priority to provide the best services for these people,” Silva added.
*Names have been changed to protect the identity of the person.
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