• Rohan Masakorala says Colombo port needs to up its game

Adani’s newly opened Vizhinjam Transshipment terminal is a competition to Colombo Port rather than a threat to it, stated Shippers’ Academy International (SAI) founder and Shippers Academy Colombo (SAC) CEO Rohan Masakorala, amidst reports citing that Colombo wil lose transhipment business to Vizhinjam Transshipment.

Speaking to The Daily Morning Business, Masakorala stated: “Whoever is more efficient, practical and pragmatic will attract business. So there's a chance at higher competition.” 

Masakorala is of the view that Colombo Port has to upgrade its productivity, partner with shipping lines, and enhance terminal operations. 

“Moreover, we have to compete more with whatever the services the shipping lines require when there is a closeby port offering transhipment facilities. But, the Colombo port capacity is much greater than the Vizhinjam Transshipment terminal.”

According to Masakorala, at the moment, Colombo can handle only a million containers a year and Colombo will upgrade it up to about 15 million by next year.  

“Adani is already partnering shipping lines in most of the ports in India, so when you have shipping lines as partners they are also obliged to support those terminals.” 

However, according to The Hindu Business Line, the international shipping lines are increasingly considering using the newly opened port as they face delays from cargo congestion and other work disruptions in Colombo Port. This is evident from the enquiries received by the terminal due to the congestion at Colombo, prompting shipping lines to skip that port.

“We are getting enquiries from shipping lines for berthing facilities, but it would take some more time to accommodate vessels”, an official source in Vizhinjam International Seaport told The Hindu Business Line.

There are reports that ships calling at Colombo were forced to wait there for more than five days to berth due to congestion and reported strike by Customs authorities which delayed cargo clearing. There has been a drop in volumes in June due to the strike, resulting in the piling up of cargo, sources in the shipping fraternity told The Hindu Business Line.

A statement by Sri Lanka Customs released on said that it had cleared 4,835 containers from July 08 to 12, compared to a total of 5,557 boxes for which clearance documents were submitted.

Customs said that there are only about 2,000 boxes left by Friday, out of a backlog built up during a work to rule campaign by the workers.

Further, Kerala Steamer Agents Association managing committee member C.S.Kartha told The Hindu Business Line that the Vizhinjam  port requires a tariff structure to begin its operations. Around 5.5 million TEUS of Indian cargo was transshipped through Colombo Port and Vizhinjam can offer a competition once all the facilities are ready.

A highly placed source in the shipping circles had told The Hindu Business Line that Vizhinjam Port can offer a viable alternative India’s Exim trade to reduce dependence on Colombo Port as they have taken advantage of the prospects of transshipment business. Along with Vizhinjam, Cochin can also offer a viable and cost effective alternative to Colombo Port.