The Sri Lanka Ports Authority (SLPA) intends to build and operate a container terminal in the planned new deep-draft port being built next to Colombo's existing harbour, its acting chairman Priyath Bandu Wickrema said.

"The SLPA is planning to build one terminal, not necessarily the first terminal. It depends on the RFP (request for proposals)," said Wickrema.

Construction work on the long-delayed port is underway with dredging of the new harbour basin and rock stockpiling for the breakwater being done.

The Asian Development Bank has loaned the bulk of the funds for the infrastructure work on condition that the first terminal be built and operated by the private sector.

A request for proposals (RFP) inviting private sector investors to build the first container terminal in the new port, which has been repeatedly postponed, will be made soon, Wickrema said.

He said that despite the delays in issuing the RFP, there was still enough time as work on building the new terminal must start by November 2009.

The RFP, which was issued last year and then cancelled in a controversy of selection of bidders, was originally to have been issued by August or September.

The top contenders were the world's biggest container terminal operators, Port of Singapore Authority and Hong Kong's Hutchison Port Holdings.

The project team and cabinet-appointed negotiating committee had finalised the fresh bid document for the new Colombo port which was now being examined by the attorney-general, the top government legal officer.

The shipping industry has expressed fears that the repeated delays in building the new port to handle newer and biggest ships could cause Colombo to lose business.

Wickrema said he disagreed with the idea that the SLPA should not be running any new terminals in the planned new port and rejected criticism that productivity was poor at the existing terminals because they were state run and overstaffed.

"We have the skills to do designing and dredging," said Wickrema. "We're capable enough to build and operate one terminal."

He said they also had the option of tying up with a foreign party.

Wickrema said efficiency at the state-run container terminals was adequate although it was hampered by aging machinery like cranes which are being replaced.

"Our workers can do a good job. They can now do 40 container moves per hour," said Wickrema.

Container moves from ship to shore or vice versa is one measure of efficiency in container terminal operations and can depend on a number of factors like the number of cranes deployed on a ship and the way boxes are stowed onboard.

Wickrema said the acquisition of new equipment should improve productivity at the Jaya Container Terminal, the main transhipment facility at Colombo port.
(LBO-07102008)