THIRUVANANTHAPURAM: Vindicating the projections that the upcoming Vizhinjam port posed competition to the Colombo port, the Sri Lankan government has announced 10% discount on handling charges for Myanmar transhipment operations as an effort to explore new markets.
It is feared that Vizhinjam port could affect the current transhipment activities of Colombo port.
Sri Lankan minister of ports and shipping Mr. Arjuna Ranatunga, who announced the sop on Tuesday on the basis of a request of the Sri
Lanka Ports Authority (SLPA) as well as ship companies, had expressed the fears over the competition posed by Vizhinjam. “It has been recognised that the port of Vizhinjam has high potential to obtain a significant portion from the transhipment handling market of western India, Pakistan and Gulf region. The SLPA warns that the move would have negative effect on transhipment activities of the Colombo port. Hence, the SLPA has taken a policy decision to explore new markets to tackle the industry. The decision has been taken as the first step towards that end,” said a statement from Mr. Ranatunga.
It also said that the transhipment activities of several deep ports like Mundra, JNPT, Hazira and Kochi in western coast of India are now divided among several ports. By offering ten percent discount in handling charges for Myanmar transhipment operations, the SLPA hopes to tap the fast -growing transhipment industry in eastern India, Bangladesh and Myanmar.
“In 2014, Colombo port had handled 2108 transhipment containers belonging
to Myanmar. The volume has gone up to 14,687 in 2015. In 1995, ten percent discount on transhipment handling charges given to attract shipping market of eastern India and Bangladesh had proved to be positive,” Mr. Ranatunga said.
