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FTZMA urges govt. to fast-track ADB-funded container yard
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Dhammika Fernando |
The Free Trade Zone Manufacturers’ Association (FTZMA) has urged the Sri Lankan government to swiftly implement the proposed Asian Development Bank (ADB)-funded container-clearing yard in Kerawalapitiya, to mitigate the ongoing cargo delays at the Colombo Port.
The facility, designed to handle 3,000 containers, was recommended in a 2020 ADB study but is yet to secure the approval from the Finance Ministry.
During a recent meeting between the FTZMA and high-ranking officials of Sri Lanka Customs (SLC), it was revealed that the Colombo Port releases approximately 1,400 to 1,500 containers daily.
However, SLC currently clears only about 600 containers or 45 percent of the total, which are distributed among three existing yards: Grayline 1 Yard, Rank Container Terminal Yard in Orugodawatta and Grayline 2 Yard in Grandpass, the FTZMA stated.
The facility, if approved, would offer five times the capacity of the current yards, potentially resolving an issue that costs millions of rupees daily and causes substantial delays in production schedules, particularly for the exporters operating under the Board of Investment.
According to FTZMA Chairman Dhammika Fernando, the ongoing delays in clearing the cargo have also led to the vessels bypassing Sri Lanka, jeopardising the delivery commitments to international brands and further damaging the country’s economic reputation.
“These delays can be especially significant because international shipping often relies on very tight deadlines,” he said, noting that the prolonged delay in approving the project has raised concerns.
Fernando shared that the association is of the view that the interference by the owners of private cargo clearing yards may have contributed to the Finance Ministry’s hesitation in giving the green light. Fernando stressed that the government must prioritise the commissioning of the new yard to reduce congestion and address the serious delays in container examination.
The current system, which queues both perishable and freezer containers through the same process, reflects a lack of priority management, Fernando said.
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