🚢 Trade, Colombo Port, Customs Delays & The Unfulfilled Promise of Kerawalapitiya Yard

⭕ Minister Vijitha Herath recently inspected lengthy container queues at Colombo Port, bringing severe inefficiencies to light.

⭕ These queues arise as Customs delays container releases until examination yards, located kilometers away, can accommodate more.

⭕ Key Issue: Customs lacks adequate facilities for container examination, relying on three private yards (Grayline 1, Grayline 2, and RCT) - total capacity: 600 (daily total volume 1500-2000)

⭕ Over the past 2 decades, these yards, situated on gov-owned land, have undergone no capacity or facility improvements. They have become cash cows for their owners, who strategically acquired them through strong political connections under previous regimes.

⭕ A feasibility study conducted in 2020, funded by the ADB, recommended constructing a new container examination yard in Kerawalapitiya with a capacity to handle 3,000 containers. However, bureaucratic delays, reportedly influenced by existing yard operators, have stalled the project's approval by the Finance Ministry.

⭕ From the 2024 Budget, Rs. 100M was allocated for an Automated Risk Management System to streamline processes, but no tender has been called yet for this system by the Ministry or the department.

⭕ Local software firms are eager to bid; however, Customs is reportedly slow-walking the process, allegedly favoring unsolicited foreign proposals.

⭕ Stakeholders have for years sought a comprehensive solution for tracking containers, trade histories, statuses, and reports. This still remains unimplemented. limiting transparency and efficiency in the import process (tender called but not yet awarded).

⭕ December is the busiest month for imports, and congestion inside the port could worsen, leading to increased demurrage costs at the terminals. Stakeholders are urging immediate action to address these systemic inefficiencies to prevent escalating supply chain costs.

#SriLanka #Customs #Economy