Port’s play with fire burns Rs. 600 m

•  SLPA says fire at CFS likely to have been caused by hazardous chemicals
• Identified importer falsified cargo manifest did not declare hazardous chemicals in shipment
• SLPA says not bound to pay damages but will consider some relief
• Govt. Analyst’s report scheduled for release within 2-3 days
• SLPA to pursue legal action against offending company; will impose maximum penalty
• Only 131 out of 431 have insured their cargo

By Dharisha Bastians

The fire that completely destroyed a cargo warehouse at the Colombo Port resulting in damages to the tune of nearly Rs. 600 million was likely caused by hazardous chemicals undeclared by an importing company Sri Lanka Ports Authority officials said yesterday, days before the Government Analysts’ final report on the cause of the blaze was due.

 SLPA Chairman Dr. Priyath Wickrama along with Non Cabinet Minister for Ports and Highways Rohitha Abeygunewardane told a news conference yesterday that physical evidence gathered by the CID and the Ports Authority pointed to the storage of highly inflammable hazardous chemicals being stored in the general cargo warehouse where the fire broke out.

“There was no declaration of hazardous chemicals being in the shipment in the cargo manifest submitted by the company in question.

In fact, their cargo manifest specifically notes that there were no hazardous chemicals in the shipment,” the SLPA Chief said, adding that the Port had different storage facilities and modalities in the case of hazardous material.

The company had subsequently declared the chemicals in its claim submitted to the special desk set up by the SLPA, he said.

The SLPA had reached its conclusions about how the fire at the Container Freight Station (CFS 1) started based on physical evidence at the site, by identifying the original location of the fire and the declaration made by the importer after the fire, the Chairman said. “But it is the Government Analysts’ report that will give the official cause of the blaze,” he cautioned.

A digital simulation of the fire on the night of 24 May showed that the fire had originated at the location at which the shipment of chemicals was being stored, according to the SLPA Chairman. He said that the fire had blazed so intensely that fire-fighters had been unable to enter the warehouse to quell the flames. Recovered close circuit television footage had proved that no persons had entered the warehouse before the fire, the official said.

Dr. Wickrama said that police had begun investigations into the company that made the false declaration and the company would be given the maximum penalty under the country’s laws.

“We want this case to be a warning to all companies who import goods and make false declarations and so we will go for the maximum punishment against the offending company,” Dr. Wickrama said.

The officials declined to mention the company under investigation or the name or nature of the chemicals suspected of having caused the fire to ignite.

“The Government Analyst’s final report on the fire will name the chemicals and point to the exact cause and is scheduled for release in two or three days,” the SLPA Chairman said, adding that the evidence gathered by the CID teams and SLPA investigators had found evidence at the site linking the bottles of chemicals to the start of the fire.

Non Cabinet Minister for Ports and Highways Rohitha Abeygunewardane told journalists the SLPA estimated the value of goods lost as a result of the fire at Rs. 556 million, while the warehouse itself had been valued at Rs. 40 million – a cumulative loss of nearly Rs. 600 million. “431 companies had imported goods that were stored in warehouse CFS 01 while 131 of these companies have some kind of insurance cover for their goods, according to documents submitted to the SLPA,” the Minister said.

According to the Ports Authority Chairman the SLPA was not bound to pay compensation for damaged shipments if the Port was not responsible for the damage as per the Sri Lanka Ports Authority Act. “However, some relief will be provided to those customers who did not have insurance cover and the SLPA will waive port fees and allow those companies to re import goods and provide storage free of charge,” he explained.