Have TUs held govt. hostage over ECT project? Or, is it govt.’s sheer incapability?

By J. A. A. S. Ranasinghe

(Productivity Specialist/Management Consultant)

Former Managing Director of the Sri Lanka Port Authority (SLPA) Eng. D. Godage’s article in The Island on 10 Oct. makes essential reading for all those who are interested in the economic development of the country. He deserves praise for that thought-provoking article on the delay in the commencement of operation of the East Container Terminal Project (ECT) for nearly five years.

It is said that three powerful ministers of the yahapalana regime pathetically failed to complete the ECT project. Although Eng. Godage has not named the three ministers, we can safely assume they were Arjuna Ranatunga, Mahinda Samarasinghe and Sagala Ratnayake. They held the shipping portfolio in that government, and their lackadaisical attitude which led to the non-implementation of the project cannot be condoned on any grounds.

Geographic location & Competitive Advantage

Eng. Godage has hit the nail on the head; he says it is not the distinct geographic advantage of the country that provides that competitive advantage. He has rightly pointed out that the geographic location itself alone cannot be relied upon to remain as a leading hub in the region. Sri Lanka has been bragging about its geographic location assuming that other things will fall into place automatically. This is only a delusion. Can we afford to continue like this and ignore competition and other essential factors? Has Sri Lanka kept pace with the technological advancements and innovations in the region at a rapid pace?

As Eng. Godage has rightly pointed out other factors such as timely enhancement of the availability of modern equipment, efficient elimination of port congestion, ensuring shortest waiting time for ships and competitive commercial tariff with simplified clearing process are also important for us to become a regional hub in the strict sense of the word.

As Eng. Godage says that the Vizhinjam international Deepwater Multi-purpose Sea Port in Kerala, funded by the Adani Group, an ally of Indian Prime Minister Modi, has a capacity of four million TEUs and would be a potential threat to Colombo Port once it comes into commercial operation by December this year. It is an open secret that container traffic has been gradually moving out of the Colombo Port to other ports due to the delay in the completion of the project. Singapore, Dubai and Salalah in the recent years have been rapidly expanding their port operations and Sri Lanka’s delay in completion the ECT (East Container Terminal) project would give them an added advantage.

ECT Project

The ECT project has already been delayed for four years, thanks to the three ministers who steered the Ministry of shipping under the previous regime. When its construction is completed it will enhance the container handling capacity by 2.4 million TEUs, bringing the total installed capacity utilisation to 9.6 million TEUs. According to Eng. Godage, a minimum of two years is needed to operationalise ECT from the date green light is given. A massive financial injection of another US$ 400 million would be needed to complete the project. At a time when the country is saddled with a severe shortage of foreign direct investment at this juncture, finding additional investment in the project will be a Herculean task.

Be that as it may, it should be asked why the incumbent government does not accord the highest possible priority to the ECT project, knowing very well that commercial viability of the port will be in jeopardy if the ECT is not completed urgently. Why has a national venture of this nature been given a step motherly treatment? Is an invincible hand responsible for it? On the eve of the last parliamentary election, trade unions of the Colombo Port downed their tools and disrupted the unloading of three container cranes costing US$ 25 million. The intervention of the Prime Minister enabled the government to obtain the concurrence of the trade unions to unload the cranes onto a partly built ECT yard, pending a report from a committee. The report has been submitted to the Prime Minister. The public is not aware of the committee recommendations, but the fact remains that no action has been initiated on this project. Does this mean the powerful trade unions have taken the government hostage at the cost of the well-being of the country and taken the SLPA for a ride!

Surely, the trade unions cannot be blamed for their high-handed action; we have to hear their side of the story. We believe that the high-powered committee has made recommendations but the general public is kept in the dark. In the case of the 20th Amendment to the Constitution, the determination of the Supreme Court is now in the public domain even before being announced by the Speaker in Parliament, but the government has thought it fit not to divulge the recommendations of the aforesaid committee.

President Gotabaya Rajapaksa has the ability to solve complex issues of this nature, and it is hoped that he will intervene to sort out the ECT issue as a matter of national priority. What the people need is to see the operation of the ECT within the next couple of years. Indecision on the part of the government in spite of having a two-thirds majority in Parliament as regards a crucial national project would ultimately have a debilitating impact on the national economy.