SL’s key ports handle record cargo traffic, ships in 2016

Sri Lanka’s port services turned in a record performance in 2016 by attracting the highest number of ships and cargo traffic to the country.
The four main ports located in Colombo, Galle, Trincomalee and Hambantota attracted 4,998 ships compared to 4,728 ships Year-on-Year (YoY). Colombo alone accounted for 4,405 ships in 2016, up from 4,197 YoY, Central Bank data indicated.
Colombo Port, Sri Lanka’s only container port, handled 5.74 million containers, or 20-ft equivalent units (TEUs) during the year, up 10.61 percent YoY, although transshipment containers, mainly servicing India, grew at a slightly higher rate of 11.79 percent YoY to 4.44 million TEUs.

The reduction of container traffic to and from the local market could be attributed to the fall in Sri Lankan exports, and the increase in importation of goods that are not containerized, such as dredging vessels, construction material, and other heavy machinery and equipment.
Colombo port’s youngest terminal, the Chinese-run Colombo International Container Terminal, handled 2 million TEUs of the total in 2016, with a 28 percent growth YoY, while the other privately-owned terminal, the South Asia Gateway Terminal, handled 1.63 million TEUs, growing 19.03 percent YoY.
This placed the containers handled by the state sector in 2016 at 2.10 million TEUs, a 6.7 percent decline YoY.
However, the state-run Sri Lanka Ports Authority (SLPA) managed to increase its revenue 7.04 percent YoY to Rs. 42.99 billion, as the total cargo handled by all terminals across all ports increased to 86.52 million metric tonnes, a 11.52 percent increase YoY.
Operating profits of SLPA fell 7.5 percent YoY to Rs. 28.66 billion, although evidence points towards more profits being absorbed by finance costs, since foreign debt increased to Rs. 141.90 billion from Rs. 137.91 billion YoY. (CW)