Good Company

Good Company
Good Company

Thursday, June 28, 2007

Terrorism slowing growth of Sri Lanka sea trade?

Terrorism gets mentioned, but... here:
Sri Lankan exporters are being squeezed as fewer container ships heading west call into Colombo, with global shipping lines moving more business to India and its booming economy.
Inefficiencies at the 125-year-old Colombo port and enhanced security measures to prevent Tamil Tiger rebels from damaging the main harbour may also have contributed to the shipping lines' decision, said Perera.

"The entrance to the Colombo port is now partially closed at night to prevent terrorist attacks. Only one ship can come in and go out at a time, causing congestion and unwanted delays," Perera said.

Despite the constraints, the port's volumes rose 26 percent in the first quarter of this year, with more than three-quarters of the cargo being trans-shipped.
26% growth? I guess it could be better...but there seems to be no shortage of reasons other than anti-terrorism steps for any loss of additional business:
Over the longer term, a proposed south port in Colombo is expected to be operational after 2011, while the government this month initiated another port at southern Hambantota, closer to the main international shipping lanes.

Both projects have been delayed for over a decade because of poor government policy and analysts fear that further delays could see Colombo lose its hub status.
Antiquated port, off the main shipping lanes...

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