Boo for Colombo Port over bunker

Users are fuming over the suspension of 24-hour service of oil bank and bunker jetty at the Colombo port, blemishing its status as South Asia’s hub.

Sources said that bunker operators have been informed of the inability to load any bunker fuel from Jaya Container Terminal Ltd., after 2400 hours daily.

This is due to the JCT Ltd., employees complaining to the Labour Commissioner for them being continuously engaged in services for more than 24 hours.

Bunker operators are fuming over the move because the simple solution for Sri Lanka Ports Authority is to deploy a shift system thereby eliminating the need for the concerned employees being burdened with continuous work.

“Port of Colombo operates 24x7 basis and the fact that bunkering is a round the clock activity wherein every customer expects bunkering to the vessel on arrival. This can be made possible only with whole hearted support of JCT and SLPA. If such a problem of the Staff exists and as requested by the Bunker Operators, JCT Ltd should consider a shift system to provide a service as all the Bunker Operators are paying overtime charges which do not apply to any other service in the port of Colombo provided by the SLPA,” sources said.

They said that total revenues of JCT Ltd., was sufficient to provide a two or three shift system on account of higher turnover.

Sources said that bunkering is curtailed while cargo is discharged to JCT due to usage of a single line for loading and discharging. “Refusal of loading of bunkers after 2400 hrs if known by the International Operators would lead to Colombo losing its position and customer confidence,” they pointed out.

The fiasco follows despite there being an understanding between the bunker operators and JCT an overtime levy on the barge operators after 1630hrs weekdays, holiday and weekends.

Bunker operators are lamenting that despite suggestions made to this effect it is being ignored causing severe inconvenience as well as loss of income to all stakeholders. They also alleged that requests for a meeting with SLPA Chairman to discuss the serious concern had been ignored as well.

At present there are three bunker operators in the Colombo port namely Lanka IOC Plc, Lanka Marine Services Pvt Ltd., and Lanka Maritime Services Ltd.

Port users also said that monopoly of the bunkering tanks remains unchanged after the operations reverted back to the state sector from the private sector. They alleged that the only change has been that the bunker operators can co-mingle their bunker products, which was not possible under private monopoly.

Sources recalled that under Supreme Court judgment the bunker tanks that were sold to JKH under style of Lanka Marine Services Ltd., were handed back to SLPA. Thereafter the SLPA handed over the management of these tanks to its subsidiary JCT Ltd., now headed by a former Managing Director of the SLPA.

It was pointed out that under the monopolistic common user service facility, JCT Ltd has successfully operated the Oil Bank Terminal for the past three years and has gained a wealth of knowledge and skills.

However JCT does not accept responsibility over the quality and quantity within the oil bank.

Sources said JCT is the recipient of cargo to its tanks but does not at attend joint sampling prior to discharge into Oil Bank. Instead the services of Ceylon Petroleum Storage Terminals Ltd are relied upon which has to be paid by the importer.

Current operators also claim that the storage facility provided is not sufficient to increase the turnover of the bunker products and have requested that the facility in new Mahinda Rajapakse Port to be considered similar to Colombo.

This request comes midst SLPA’s position that it will handle all bunkering operations at the Hambantota port.

However considering the volatility of the bunker market, industry analysts queried whether it was the right move as the SLPA has no experience in trading in the oil industry.