2026-02-05 / Second Reading Debate: Institute of Real Estate Professionals Bill, Container Depot Operators Licensing Bill, and Licensing of Shipping Agents Amendment Bill - Opening Statements 2026-02-05
Deputy Minister Kodithuwakku introduced the Container Depot Operators Licensing Bill, framing it as essential to Sri Lanka's ambition to become a regional maritime hub. He outlined significant capacity expansion plans at the Port of Colombo, including the commissioning of the West and East Container Terminals to bring total capacity to approximately 15 million TEUs, while noting procurement irregularities at the ECT had caused delays and required re-tendering of straddle carriers. He argued that mismanagement of domestic cargo flows — representing 15 percent of Colombo's throughput — had caused landside congestion, with unregulated container depots creating inefficiencies including delays to trucks and prime movers. The Bill would empower the Director General of Merchant Shipping to regulate depot service levels and pricing, including minimum tariffs to protect depot viability, while complementary infrastructure measures such as a Port elevated highway ramp and a Green Channel inspection route are also planned.
Thank you, Madam Deputy Chairperson.
Today we take up three Bills, including one vital to the maritime sector and, in particular, the Container Depot Operators Licensing Bill to regulate and oversee the operation of container depots and related matters.
Sri Lanka must become a maritime hub in this region. The Sri Lanka Ports Authority, especially the Port of Colombo, has done a substantial job — last year, for the first time, we surpassed 8 million TEUs. We aim to add significant capacity this year by bringing both the West Container Terminal (WCT) and East Container Terminal (ECT) back on stream. Each will add about 3 million TEUs, totaling an additional 6 million TEUs. JCT’s yard capacity is also being increased by 0.5 million TEUs. By end-year, total capacity will approach 15 million TEUs.
ECT’s physical progress was only around 30–35 percent when we took office in late 2024. We accelerated it. There were procurement gaps and some omissions, causing delays, but by year-end we will complete the quay wall and yard to berth three of the world’s largest ships simultaneously. The yard has 20 lanes; 10 are completed and tested, and we aim to commence operations on multiple lanes this month.
We encountered major irregularities in the procurement of straddle carriers and had to cancel and re-tender. That process is about 95 percent complete, but we have planned so that ECT operations can commence using trucks instead of straddles initially, with only about a 10 percent efficiency impact, offset by increasing active lanes.
About 85 percent of Colombo’s throughput is transshipment; 15 percent is domestic imports/exports. Mismanagement of that 15 percent created the yard-side congestion we saw. Port operations are an integrated system: waterfront and landside must both function smoothly. We must therefore improve off-port infrastructure and regulatory frameworks as well.
With economic stabilization and political stability, TEUs rose from 1.1 to 1.3 million domestically last year, and general cargo grew about 30 percent. Daily, 1,500–2,000 import containers exit the port, are unpacked at factories, and 2,000 empties re-enter the system. Container depot operators manage these flows. Currently, the process is inefficient and unregulated. Shipping lines complain they cannot track containers; depots cause trucks — and our limited prime movers — to be stuck. There are about 26 depots; if each delays five prime movers, 130–150 trucks can be stuck. We must regulate service levels and pricing. The Bill empowers the Director General of Merchant Shipping to regulate prices, including minimum tariffs to ensure depot viability given the bargaining power of shipping lines.
We have coordinated with the Highways Ministry to open the Port elevated highway ramp by end-March. Containers can then be routed directly to inspection yards via a Green Channel, easing internal circulation.
Yards should ideally be within a 20 km radius, but land is costly; operators drift to other activities. This Bill brings discipline and viability to container depot services and equips the regulator to manage capacity as imports and exports grow.