• Only 35% of containers inspected as compliance drops by 30%
• Delays caused by external agencies account for 86% of container hold-ups
• Private yards now storing containers as port capacity reaches 100%
• Special committee established to address port delays, no immediate solutions
• Potential 20% rise in import costs due to port congestion

The Colombo Port is buckling under severe congestion as container volumes have surged dramatically, exposing critical infrastructure shortcomings and inefficiencies in Customs operations, according to Customs Spokesman Additional Director General Seevali Arukgoda.

As per the statistics available with Sri Lanka Customs, the number of containers passing through the ports has skyrocketed from an average of 800-1,200 per day to over 1,500, with some days seeing as many as 3,000 containers.

However, as reliably learnt by The Sunday Morning, the facilities remain woefully inadequate to handle this surge, creating significant bottlenecks.

“The volume has gone up, but the facilities have never been improved or increased. This is the main issue,” Arukgoda said.

He further explained that in May 2020, the Asian Development Bank (ADB), at the request of Customs, had identified land in Kerawalapitiya to construct a state-of-the-art Customs examination facility. This yard had been designed to accommodate rising volumes until 2050. 

However, the project had been derailed when the land, previously allocated for Customs with Cabinet approval, had been repurposed for another initiative by the previous Government.

“Had this project been implemented, we wouldn’t be facing this issue today. We have made requests and submitted our proposals to the Government and President Anura Kumara Dissanayake has promised to recommence the Kerawalapitiya project,” Arukgoda said.

In response to mounting pressure, the Sri Lanka Customs has reduced the percentage of containers subjected to physical inspection from 80% to 35%, with 65% being cleared without intervention. 

Despite these efforts, Arukgoda revealed that 55-65% of inspected containers still showed non-compliance with regulations.

“This non-compliance includes excess cargo, undeclared items, and even prohibited goods,” he said, underscoring the need for rigorous checks to ensure public safety, maintain standards, and prevent revenue loss.

Meanwhile, an internal affairs unit, established to combat corruption, has resulted in the interdiction of four officers failing to perform proper inspections. 

“This has made officers more cautious, but it has also slowed down operations,” Arukgoda acknowledged.

He also pointed out external factors contributing to delays, such as importers withholding declarations to exploit fluctuating exchange rates and other Government agencies such as the Sri Lanka Standards Institution (SLSI) and plant quarantine authorities lacking adequate staff and facilities to expedite inspections.

“Out of the 440 containers selected for examination last Friday (10), only 60 were for Customs; the remaining 380 were required by other agencies,” he explained.

Arukgoda cited instances of food items such as onions, chillies, and potatoes being delayed in yards due to restrictions on transport during certain hours. 

“Even when we complete formalities by 9 a.m., these containers are not cleared until 10 p.m. because of Police restrictions,” he said. Such delays not only block space but exacerbate congestion.

Another significant issue is the prolonged detention of containers by other agencies for testing. “Some tests take months, and until they’re completed, containers occupy space in our yards,” Arukgoda said, adding that the lack of weekend staffing by these agencies further compounded delays.

As an interim measure, he stated that the Customs had acquired private yards for the storage of containers. “Private yard owners will provide facilities and charge the importers, meaning there is no cost to the Government,” he explained.

Meanwhile, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku attributed the issue to an economic boom leading to a rise in imports and exports.

He also announced a series of infrastructure and operational improvements to alleviate the problem. 

Chief among these is the construction of a short road connecting the Colombo International Container Terminal (CICT) and the East Container Terminal (ECT). Spanning just 200 metres, the road is expected to revolutionise inter-terminal transfers.

“Transporting containers between terminals has been a persistent challenge due to congestion. This backlog often delays the booking of berths for ships, further compounding the problem. The new road will bring tremendous efficiency,” Kodithuwakku said. 

The project, which involves minimal costs as the land is already available, is expected to be completed within a month.

In addition, the Government has formed a special committee comprising Customs, Ports, and Department of Health officials and other stakeholders to monitor and resolve operational inefficiencies.

“This committee is streamlining decision-making and information-sharing processes, and measures like incentivising workers are already expediting container clearance,” Kodithuwakku noted.

According to the Deputy Minister, as a solution to the congestion, temporary inspection points such as the one at Bloemendhal are set to become operational next month. This facility will allow containers to be sealed and inspected directly at the yards, significantly reducing delays.

“We are confident that these measures will resolve congestion within a month or two,” he added.

Meanwhile, the Container Transport Owners’ Association (CTOA) has reported that inefficiencies at the Sri Lanka Ports Authority (SLPA) and Customs had caused 800-1,000 transport vehicles to be stranded at the Colombo Port.

Delays have resulted in drivers waiting for up to a week, leading to increased congestion and operational difficulties. The Wharf Workers’ Association has cautioned that these delays could result in a 20% rise in import costs due to late fees being passed on to consumers.