SL Customs raises concerns over FinMin’s ‘No Go’ stance to ADB proposed container yard

Container trucks still queuing outside the Colombo Port following the recent 24-hour work to rule action by the Customs. 

By Kurulu Koojana Kariyakarawana

Pic by Nimalsiri Edirisinghe 

Sri Lanka Customs has raised concerns over the ‘No Go’ indication from the Finance Ministry to the proposed container clearing yard with a 3,000-container capacity. 

The project, recommended by a 2020 Asian Development Bank (ADB) study as a solution to current cargo congestion, has not yet received approval from the Finance Ministry, the Daily Mirror learns.

As a solution to the country’s pressing cargo congestion issue that costs millions of rupees a day and time wastage, the ADB, on a special request by the SL Customs conducted a comprehensive feasibility study on utilising a 25-acre land in Kerawalapitiya belonging to the Urban Development Authority in 2020.

Accordingly, the Rs.7 billion fully-fledged cargo clearing yard in Kerawalapitiya, once completed, will be able to accommodate 3,000 containers, higher than the present capacity of all three private container yards and the Colombo Port. The Customs currently carries out cargo clearing work at three yards; Grayline 1 Yard, RCT Yard (Rank Container Terminal) in Orugodawatta, and Grayline 2 Yard in Grandpass. The three facilities together have a hoarding capacity of 17 acreage.

When the Colombo Harbour releases about 1, 400 to 1, 500 containers daily, the Customs checks and clears about 45 percent of them equivalent to 600 containers in numbers, which are being sent to the three yards that formerly belonged to Government Food Stores Complex.

While Grayline 1 and RCT yards could accommodate up to 450 containers and Grayline 2 about 150 containers, the ADB proposed facility could hold up to five times the capacity.

The recent 24-hour work to rule action by the Customs against the proposed Sri Lanka Revenue Authority Bill (SLRA) saw over 1, 000 containers been loaded within and outside the Colombo Port as well as in the yards and along the roads. When questioned, a senior Customs official explained although certain trade union action is inevitable owing to the arbitrary decisions by the government, the proposed cargo clearing yard in Kerawalapitiya could resolve many issues including time wastage and loss of money.

Customs Trade Unions believe interference by owners of these private cargo clearing yards has led to the ‘no go’ decision by the Finance Ministry.

The Daily Mirror made several attempts to contact State Minister of Finance Ranjith Siyambalapitiya for comment, but failed.

Once the proposed yard is established, the container carriers that leave Colombo Port could directly transferred to Kerawalapitiya through the Colombo – Katunayake Expressway and clearing operations could start without hassle, the Customs sources said.