Industry Bodies Call for Action on Port Congestion

Coalition Of Industry Bodies Call for Immediate Action on Port Congestion

by Zulfick Farzan 31-01-2025 | 9:56 AM

COLOMBO (News 1st); Twenty-nine joint chambers and associations have come together to propose urgent solutions aimed at mitigating the impact on the nation's economy, in response to the escalating port congestion crisis at Colombo Port.

The coalition, comprising key trade, maritime, and logistics associations, has highlighted the severe repercussions of the congestion, including delays for exporters, missed shipping opportunities, and increased processing costs.

They said that 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.

The joint statement noted that reports indicate that ships are bypassing Colombo for more efficient neighboring ports, potentially resulting in a permanent shift and loss of container volumes.

This situation is exacerbating freight rates and adding costs for freight forwarders and shipping lines.

Importers, transporters, and other stakeholders are also facing business losses, contributing to higher prices for essential goods and an increased cost of living for Sri Lankans.

The manufacturing sector is particularly affected by material delays, threatening Colombo's status as a transshipment hub and posing serious risks to the overall economy.

The joint chambers and associations have outlined a series of recommendations for the government to address these pressing concerns:

Short-term (within the next two weeks):

1. Empower 24/7 operations for screening units to streamline container processing and incorporate other border agencies to fast-track approvals.

2. Utilize existing data on importers to identify low-risk cargo and expand the exemption facility.

3. Allow low-risk cargo to bypass excessive inspections.

4. Correct duplicating HS codes and streamline approvals based on prior clearances.

5. Establish a public-private committee to fast-track clearance processes.

6. Increase staff and extend working hours to resolve congestion.

Medium-term (within the next 3-6 months):

1. Utilize underutilized container yards near Colombo Port.

2. Prioritize end-to-end digitalization of customs processes and approvals.

3. Rehire experienced retired customs officials to improve operational efficiency.

4. Introduce a framework for monitoring implementation and holding parties accountable.

5. Facilitate faster clearance by expanding the program.

The coalition urges the government to swiftly consider these recommendations and engage in their speedy implementation to alleviate the port congestion crisis and support economic growth.

The above recommendations are proposed by the following Chambers and Associations:

1. The Ceylon Chamber of Commerce (CCC)

2. American Chamber of Commerce in Sri Lanka (AMCHAM)

3. Association of Clearing & Forwarding Agents (ACFA)

4. Association of Container Transporters’ (ACT)

5. Association of Inland Container Depot Operators (ACDO)

6. Association of NVOCC Agents (SLANA)

7. Ceylon Association of Shipping Agents (CASA)

8. Ceylon Freight and Logistics Association (CEYFFA)

9. Ceylon National Chamber of Industries (CNCI)

10. CHA Traders Association

11. Chamber of Construction Industry of Sri Lanka (CCI)