How was 2024 in terms of container handling?
Things went well for us. We handled more than two million containers in 2024, which was twice its original design capacity of 1.1 million boxes. This was possible due to the investments in technology and people. The marine and other divisions of Sri Lanka Ports Authority internal and external providers of trucking and lashing services, have contributed to reaching the target.
With Gemini Cooperation coming into play from February 2025, what are the expectations?
I think it will be very good for the transshipment hubs. All the hubs will benefit including Colombo. Most lines are now committed to go around the Cape of Good Hope for the foreseeable future. So, networks and resources are being built on that basis. So, we are going to see some strengthening of total volumes at Colombo, particularly with the additional capacity that will be operational soon.
What are the new initiatives at SAGT?
We are planning to introduce a vehicle booking system to improve truck turnaround times, which will help to reduce congestion in the entire port. The system will allow shippers, consignees, truck drivers and other port users to manage container movements to and track container status via a mobile app. We will also be installing Optical Character Recognition (OCR) technology at the gate and quayside to speed up container processing.
As a nation also we are looking at several technology initiatives. Digitization of the port community system is pending. New Government has lot of emphasis in bringing digitisation in a big way.
What is your view on the evolving transshipment hubs in the Indian subcontinent?
The order book and actual ships in operation have never been higher. These ships lend themselves to a hub-and-spoke operations. Particularly the bigger 17,000-18,000 TEU plus ships, are not going to deviate given their massive operating costs.
So, the concept of a hub will continue giving rise to more and more volumes at transshipment hubs. That will naturally be going to benefit South Asia as a whole, and Colombo in particular.
Transshipment business is a pure capacity game. While everybody sees bogeys and competition in the growth of places like Vizhinjam, I see that really as an opportunity as it enhances transshipment capacity in the region.
We have seen this phenomenon in Southeast Asia with Singapore and Malaysia, in the Middle East with Dubai and Abu Dhabi, in the West Mediterranean with Morocco and Tangier and so on. Capacity brings volume, it’s not the other way around. I think India’s growth is going to drive South Asia.
