Indian ports not deep enoughIndian ports not deep enough

* But Lanka would have to create
synergies with giant neighbour

August 3, 2011, 8:38 pm


Although a late starter in port development, Sri Lanka may have nothing to fear from India’s port expansion plans as the subcontinent does not have adequate depths to support the new larger vessels. However, it would be in Sri Lanka’s, and India’s, best interest to create synergies to capitalise on the new global economic dynamism where Asia is expected to lead the growth.

The International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse said Indian ports were expanding whilst productivity improvements were also visible.

"But they have a problem with draught (vertical distance between the waterline and keel of a ship). They do not have the depths to support the new generation of vessels. Of course they could make their long approaches deeper but that would be too costly," he said in response to a query raised by The Island Financial Review.

Over 70 percent of TEUs (containers) handled at Sri Lanka’s highly congested port of Colombo is transshipment to and from India and Naruse believes it is in Sri Lanka’s best interest, where water depths are not an issue, to create synergies with India. "India’s growth would benefit Sri Lanka," the Japan based Naruse said.

Shipping experts have constantly warned that a delay in developing port capacity in Sri Lanka would result in the loss of business as Indian ports have had a head start.

"I do not know much about the ports in Sri Lanka but I would say authorities would have to be conscious about the environment and safety issues going forward," Naruse said.

He was in Sri Lanka to announce that Colombo would be hosting the IAPH’s 12th Asia/Oceania Regional Meeting and Port Forum next March.

South Asia is expected to record the highest growth in terms of container volumes over the next few year starting from 11.1 percent this year and 8.4 percent in 2012, but as far as global container volumes are concerned less than 4 percent in handled by South Asian ports.

Warning shot...

India is rapidly developing its ports and Sri Lanka would have to compete on efficiency, service standards and cheaper rates.

Capt. Subhash Kumar, Chairman Chennai Port Trust, India, addressing a forum in Colombo in February 2010 said container volumes handled in Indian ports had increased significantly in 2009 despite the global economic crisis, with Chennai’s volumes increasing 27 percent, as a result of rapid developments to its ports.

"All ports in India are going through a phase of rapid development. Rail and road networks have been strengthened, channels and berths in almost every port have been deepened and new berths have been added," Capt. Kumar said.

He said the ports were being modified to accommodate the new class of large super-vessels that had begun to take to the seas.

"We have a target of increase volumes from 750,000 million tonnes to 1,500,000 million tonnes in two to three years’ time," Capt. Kumar said.

"Everybody knows that Sri Lanka is mainly surviving on Indian transshipment. Many ask me whether these developments to Indian ports would impact Sri Lanka. Yes it would. We would have to compete on efficiency, parameters of service and cheaper rates."

Capt. Kumar was quick to say that volumes are expected to increase for the entire region and although India is expecting to see an increase in volumes handled by its ports, it did not mean that Sri Lanka would lose out.

"Volumes to the region are expected to double and this would benefit everybody. We (Bangladesh, India and Sri Lanka) must be united, as it is said, united we stand, divided we fall (or sink as per shipping terms). We must be united in creating a hub in the region around India," he said.

pic

Not deep enough? International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse at the press conference in Colombo.

Pic by Gamini Munasinghe.

* But Lanka would have to create
synergies with giant neighbour

August 3, 2011, 8:38 pm


Although a late starter in port development, Sri Lanka may have nothing to fear from India’s port expansion plans as the subcontinent does not have adequate depths to support the new larger vessels. However, it would be in Sri Lanka’s, and India’s, best interest to create synergies to capitalise on the new global economic dynamism where Asia is expected to lead the growth.

The International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse said Indian ports were expanding whilst productivity improvements were also visible.

"But they have a problem with draught (vertical distance between the waterline and keel of a ship). They do not have the depths to support the new generation of vessels. Of course they could make their long approaches deeper but that would be too costly," he said in response to a query raised by The Island Financial Review.

Over 70 percent of TEUs (containers) handled at Sri Lanka’s highly congested port of Colombo is transshipment to and from India and Naruse believes it is in Sri Lanka’s best interest, where water depths are not an issue, to create synergies with India. "India’s growth would benefit Sri Lanka," the Japan based Naruse said.

Shipping experts have constantly warned that a delay in developing port capacity in Sri Lanka would result in the loss of business as Indian ports have had a head start.

"I do not know much about the ports in Sri Lanka but I would say authorities would have to be conscious about the environment and safety issues going forward," Naruse said.

He was in Sri Lanka to announce that Colombo would be hosting the IAPH’s 12th Asia/Oceania Regional Meeting and Port Forum next March.

South Asia is expected to record the highest growth in terms of container volumes over the next few year starting from 11.1 percent this year and 8.4 percent in 2012, but as far as global container volumes are concerned less than 4 percent in handled by South Asian ports.

Warning shot...

India is rapidly developing its ports and Sri Lanka would have to compete on efficiency, service standards and cheaper rates.

Capt. Subhash Kumar, Chairman Chennai Port Trust, India, addressing a forum in Colombo in February 2010 said container volumes handled in Indian ports had increased significantly in 2009 despite the global economic crisis, with Chennai’s volumes increasing 27 percent, as a result of rapid developments to its ports.

"All ports in India are going through a phase of rapid development. Rail and road networks have been strengthened, channels and berths in almost every port have been deepened and new berths have been added," Capt. Kumar said.

He said the ports were being modified to accommodate the new class of large super-vessels that had begun to take to the seas.

"We have a target of increase volumes from 750,000 million tonnes to 1,500,000 million tonnes in two to three years’ time," Capt. Kumar said.

"Everybody knows that Sri Lanka is mainly surviving on Indian transshipment. Many ask me whether these developments to Indian ports would impact Sri Lanka. Yes it would. We would have to compete on efficiency, parameters of service and cheaper rates."

Capt. Kumar was quick to say that volumes are expected to increase for the entire region and although India is expecting to see an increase in volumes handled by its ports, it did not mean that Sri Lanka would lose out.

"Volumes to the region are expected to double and this would benefit everybody. We (Bangladesh, India and Sri Lanka) must be united, as it is said, united we stand, divided we fall (or sink as per shipping terms). We must be united in creating a hub in the region around India," he said.

pic

Not deep enough? International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse at the press conference in Colombo.

Pic by Gamini Munasinghe.