The Joint Alliance of Port Trade Unions (TUs) has informed the Chairperson of the Ports Authority and the relevant authorities, including President Anura Kumara Dissanayake, in writing that the senior management of the Authority has confirmed that it is more advantageous to operate the East Container Terminal (ECT) of the Colombo Port and the South Asia Gateway Terminal (SAGT) under the Ports Authority. They have also stated that they would oppose any attempt by the Government to privatise the ECT or to re-privatise the SAGT.
The letter further stated that although the SAGT, which has been leased to a private partnership for a period of 30 years, has generated a total revenue of only about United States Dollars ($) 250 million over the 27 years so far, the Managing Director (MD) of the Authority has stated that even the currently constructed half of the ECT alone could generate about $ one million per day, amounting to approximately $ 360 million per year.
It is also mentioned that the MD revealed these facts during a special awareness programme held on 29 April at the Mahapola Ports and Maritime Academy to brief executive officers of the Authority on the current status of the ECT.
Accordingly, it is stated that upon completion of the entire construction of the ECT, an annual revenue of around $ 700 million could be generated using prime movers. The senior management of the Authority has also indicated that even in the absence of essential equipment such as straddle carriers required for operations, the first 10 lanes could still be operated using prime movers to generate an annual revenue of approximately $ 360 million.
The letter further stated that in 2020, when the then Government and the administration attempted to privatise the ECT, it was only after a struggle involving all TUs, mass organisations, all employees of the Authority, and the general public that the Terminal was retained under the Authority. It also claimed that the present Government, which came to power on an election promise not to privatise the ECT, has now instructed the preparation of plans to privatise it, and that the Presidential Secretary has sent a letter to the Ports and Shipping Ministry and the Authority in this regard.
However, the Joint Alliance stated that the above position expressed by the MD of the Authority may be considered a clarification of the internal stance of the senior management regarding the Presidential Secretary’s letter, and that the Alliance agrees to extend its unconditional support to that position.
The letter also alleged that the cancellation of the tender that had been called to procure straddle carriers — an essential piece of equipment for operating the ECT — and the continued delay by the Government in reordering them for more than one and a half years are part of a conspiracy to create conditions favourable for the privatisation of the ECT.
It further stated that the Joint Alliance will take the lead in defeating all attempts to hand over these two Terminals back to the private sector.
The letter, signed by the heads of the Nidahas Sevaka Sangamaya, the Podujana Progressive Employees’ Union, the National Workers’ Union, the Samagi Workers’ Union, and the Eksath Workers’ Union — organisations affiliated with the Joint Alliance, which represents a majority of the employees of the Authority — has been addressed to the Chairperson of the Authority, with copies forwarded to 10 parties including the President, the Prime Minister (PM), and the Opposition Leader.