Joint Chambers call for immediate action plan to clear port congestion
In light of the ongoing challenges faced at the Colombo port, Joint Chambers, along with key trade, maritime and logistics associations, proposed solutions to mitigate the impact of port congestion on the nation’s economy.
They point out that due to these exporters are facing potential delays with imported inputs, missed shipping opportunities and increased processing costs, undermining their competitiveness in the global markets and foreign buyer confidence in Sri Lanka.
Reports indicate that ships are bypassing Colombo for more efficient neighbouring ports which would be a permanent shift, resulting in lost container volumes for the Colombo port and rising freight rates, along with additional costs for freight forwarders and shipping lines. Importers, transporters and all other stakeholders are also losing business opportunities due to these delays, contributing to higher prices for essential goods and an increased cost of living for the people of Sri Lanka.
The manufacturing sector is struggling with material delays and finally this overall situation threatens Colombo’s status as a transshipment hub and poses serious risks to the overall economy. The chambers recommend the Government urgently take up the following recommendations to meet the pressing concerns affecting port operations, trade efficiency and economic growth.
Short-term (within the next two weeks): 1. Swiftly implement Scanning and Screening Systems to address the backlog: Empower 24/7 operations for screening units to streamline container processing. Incorporate other border agencies like SLSI, Food Inspection, Plant Quarantine, Animal Quarantine etc. into this unit to fast track the approval process. 2. Leverage existing data on importers to expand the Green Channel: The risk management unit has extensive data on the companies which are registered with them for imports. 3. Fast-track approvals for Authorized Economic Operators (AEO) and Customs Economic Operators (CEO)- allowing low-risk cargo to bypass excessive inspections. 4. Expand the Risk Management Processes: immediately correct the duplicating HS codes in the system which is subject to additional border agencies’ approvals. 5. Reconvene the Speedy Clearance Public-Private Committee- which was in operation in the past. 6. Expand the Customs “Out Panel Examination Facility” for a period or increase staff from Customs long room after office hours at RCT to increase the number of containers to be examined and released on the same day for a period.
Medium-term (within the next 3-6 months): 1. Expand container yard capacity: 2. Digitize operations: 3 Strengthen manpower:4 Enhance accountability 5. On-board a further 50 companies on the AEO/CEO program.
These 29 Chambers urge the Government to swiftly consider the above recommendations and look forward to engaging with the Government in speedy implementation of the above recommendations.
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