The ongoing Red Sea crisis, following the attacks by the Houthi rebels from Yemen which has disrupted the usual shipping lines, has created an opportunity for all major Ports, Colombo, Hambantota and Galle in Sri Lanka.
Maritime expert and CEO of the Shippers’ Academy Colombo Rohan Masakorala said that the red sea crisis has forced the international shipping lines that operate on this route to change course and sail close to Sri Lanka waters bring more business to Colombo Port.
“Due to the crisis we see ship movements to the Colombo harbor increasing by almost 70% as the large ships will anchor in the Colombo harbor and engage in transshipment business bring unanticipated FOREX to Sri Lanka.”
In addition to these new opportunities have also emerged in the ‘Off Shore’ shipping business where the Sri Lankan maritime sector will venture out to deep sea and provide essential services by way of offering bunkering services and providing essential suppliers to ships that do not anchor in the Harbor.
Hambantota harbor too would be used for bunkering services while the Galle Harbor will engage in crew changes and bunkering and providing essentials or ships.
Masakorala said that the neighboring regional Ports would not get this advantage as the geographical location and the deep sea facilities available in Sri Lanka are unmatched.
He said that for several decades the local maritime sector was requesting to increase capacity in the Colombo Port but the progress in this regard was very slow.
“Had we expanded we could got more business to Colombo Port. We are 10 years behind when it comes to Port expansion.”
A Sri Lanka Port official said that usually they handle nearly Before the Red Sea crisis, around 5,000 container transshipments per day but this now passed the 8,000 mark.
One of the Indian billionaire businessmen, Gauthem Adani who wanted to invest four years ago in the Colombo Port expansion was driven off by Port Unions and pressure groups and the expansion project was stalled and only recommended recently.
Past Chairman Sri Lanka shippers Council, Sean Van Dort said that the red sea crisis has emerged as an opportunity for Sri Lanka. “However this is not permanent.”
He also said that the crisis will result in an increase of imported goods while exports too would have a negative impact. “We expect the freight rates to increase by over 200% during the crisis period.”
Shipping companies will subsequently look for other routes, ports and other options as well.”
