Boycott cripples-  rudderless port -Losses mount, cargo piles up

By Dasun Edirisinghe-February 3, 2016, 12:00 pm 

Police speaking to protesters

A simmering dispute between the Sri Lanka Ports Authority and the port users over ‘unconscionable’ increases in port entry permit charges yesterday came to a boil with most port users boycotting the Colombo Port despite a last minute assurance by the SLPA Acting Chairman to reduce the charges later this month.

The Island exclusively reported on January 08 the impending confrontation.

Shipping sources said yesterday’s boycott of the port had resulted in over 90 percent of the more than 2,000 container carriers that normally entered the port keeping away and urgent export cargo missing their vessels and import cargo piling up in the port.

They said the backlog of export/import cargo created in just one day would take at least one week to clear. The loss to the country was estimated at more than Rs 50 million.

Adding to the chaos has been the absence of the Chairman of SLPA Dhammika Ranatunga from office for more than a month. The Island understands he has gone abroad for medical treatment. Dhammika, who is a brother of Ports Minister Arjuna Ranatunga was appointed to the post amidst allegations of nepotism.

Solidarity of Port Users’ Associations (SPUA) Co – Convener B. I. Abdeen threatened to continue the boycott if the SLPA did not reverse the decision to increase the port entry charges by 4,000%.

According to the SLPA decision a permit for a prime mover which was Rs. 300 per year has been suddenly jacked up to Rs 12,000 and the annual permit for a person has gone up from Rs 250 to Rs 10,000. So a prime mover operator who employs a driver and cleaner now has to pay as much as Rs. 32,000 annually just for entry permits compared to less than Rs. 1,000 earlier.

Abdeen said that due to wharf clerks’ boycott alone, Sri Lanka Customs had not been able to collect Rs. 37 million yesterday.

About 8,000 port users such as lorry drivers, prime mover drivers, wharf agents and clerks and sub contractors had taken part in yesterday’s boycott, Abdeen said.

"Any kind of payments to the Customs did not take place and issuing of permits also stopped at the Lotus Road entrance while the port users staged a demonstration opposite the Customs headquarters," he said, adding that SLPA management had not decided to revise the charges until end of the day.

Abdeen said that they had complained about the unbearable increase to the Human Rights Commission of Sri Lanka on Tuesday.

"We will have to continue boycott until the SLFP grants our just demand."

President of the Association of Container Transporters, Upali Gunawardena said that even Singapore, which was considered the guiding light for other regional ports charges a mere USD 1.07 for a five year permit issued to regular port users.

Gunawardena said they would have to eventually pass the increase in the fee on to the consumers by charging more for clearing import as well as export cargo.

Minister of Ports and Shipping Arjuna Ranatunga was not available for comment.