FTZMA urges Govt. to implement proposed ADB-funded Kerawalapitiya container clearing yard to wade off cargo delays
Following a recent discussion of FTZMA with the Director General and high-ranking officials of Sri Lanka Customs (SLC), FTZMA urges the Ministry of Finance to urgently implement the proposed container clearing yard with a 3,000-container capacity to ease import clearance without delay.
“This project was recommended by a 2020 Asian Development Bank (ADB) study as a solution to prevalent cargo congestion but is yet to receive the necessary approval from the Finance Ministry,” says Chairman FTZMA, Dhammika Fernando. (pictured)
The meeting with Customs had revealed that when Colombo port releases about 1, 400 to 1, 500 containers daily, the Customs can presently clear about 45 percent of them equivalent to 600 containers in numbers, which are being sent to three clearing yards Grayline 1 Yard, RCT Yard (Rank Container Terminal) in Orugodawatta and Grayline 2 Yard in Grandpass.
Customs says that the newly proposed yard gives an ideal solution to the country’s pressing cargo congestion issue that costs millions of rupees a day and time wastage thus resulting in dampening production schedules of country exporters particularly companies operating under BOI due to lack of raw materials thereby bearing the brunt of increased costs and delays due to these unprecedented delays.
Furthermore, the prolonged disruption has also resulted in creating a ripple effect on exports, as delays in clearing cargo have led to vessels bypassing Sri Lanka altogether. This would also jeopardize the delivery commitments of local manufacturers to international brands, further damaging our economic reputation and future trade prospects. They can be especially significant because international shipping often relies on very tight deadlines.
According to Customs, this new yard has come into the picture based on a comprehensive feasibility study conducted by Customs on utilizing a 25-acre land in Kerawalapitiya belonging to the Urban Development Authority in 2020. Moreover, the capacity of the new yard seems to be much higher than the present capacity of all three private container yards because Grayline 1 and RCT yards could accommodate up to 450 containers and Grayline 2 about 150 containers therefore the ADB proposed facility could hold up to five times the capacity of these three yards.
FTZMA mentioned that they could not put the total blame on Sri Lanka Customs because Customs is currently operating with a 30% staff deficiency, which has directly impacted its capacity to process goods swiftly, therefore FTZMA insists that Government must decide to commission this new yard to lessen the congestion and undue delays in container examination.
The post FTZMA urges Govt. to implement proposed ADB-funded Kerawalapitiya container clearing yard to wade off cargo delays appeared first on DailyNews.