Colombo Port Faces Congestion as 30 Ships Depart Amid Container Clearance Delay

Over the past two weeks, approximately 30 ships have departed from the Colombo Port due to significant delays in container clearance. This situation has been exacerbated by inefficiencies within the Sri Lanka Ports Authority and the Customs Department, leading to congestion and operational challenges.

In response, Sri Lanka Customs has initiated a special program to expedite container clearance. On January 13, 459 containers were cleared, including 242 that underwent inspection and were released from various yards. Despite having the capacity to process around 500 containers daily, delays persist due to a shortage of clearing agents and lorry drivers. As of January 14, 496 containers were awaiting transfer to cargo inspection yards, and an additional 603 containers cleared by Customs remained uncollected by importers and their agents. To address these issues, Customs and related government agencies are working even during public holidays to release the containers.

The Container Transport Vehicle Owners Association has reported that nearly 1,000 container transport vehicles are stranded at the port due to these delays. Drivers have been forced to remain at the port for almost a week, creating severe operational challenges. This situation is expected to increase the cost of imported goods, with the Wharf Workers’ Association warning that prolonged container clearance times could lead to a 20% price hike.

To alleviate congestion, Customs has temporarily rented private yards to store containers, with associated costs passed on to importers rather than the government. Additionally, a special committee comprising Customs, Ports, and Department of Health officials has been formed to address operational inefficiencies. Initiatives such as incentivizing workers and establishing temporary inspection points are expected to expedite container clearance.

While these measures are underway, the backlog of containers is expected to take at least three weeks to clear.