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Technical Assistance Consultant's Report Democratic Socialist Technical Assistance Consultant’s Report Project Number: 50184-001 February 2020 Democratic Socialist Republic of Sri Lanka: National Port Master Plan (Financed by the Japan Fund for Poverty Reduction) The Colombo Port Development Plan – Volume 2 (Part 2) Prepared by Maritime & Transport Business Solutions B.V. (MTBS) Rotterdam, The Netherlands For Sri Lanka Ports Authority This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Category Issue Severity Equipment Technical and financial assessment on the feeder cranes at JCT I-II Medium Equipment Scrap/amortisation of old tractors and trailers Medium Equipment Over a period of time, the RTG equipment fleet need to be upgraded when Medium additional investment for new RTGs and/or replacement of RTGs is required Operations Truck flow direction should be changed back into a one-directional flow High Logistics Expansion of the gate complex for import/export containers High Systems Upgrade of the Terminal Operating System (TOS) to N4 version High South Asia Gateway Terminal South Asia Gateway Terminal (SAGT) is a Joint Venture between John Keells Holdings Plc, A.P. Møller- Mærsk Group, Evergreen International SA, Peony Investments SA, and the SLPA (15%). SAGT operates the terminal under a 30-year BOT arrangement that was signed in 1999. The table below provides an overview of the facilities at the terminal, as well as historic throughput figures. The following key observations can be made regarding SAGT’s facilities and throughput: • Container volumes have increased from 0.9 M TEU in 2005 to 1.6 M TEU in 2016; however, container throughput volumes have declined since 2010, when throughput amounted to 2.0 M TEU. • SAGT has a water depth of CD -15.0m. • SAGT has a terminal depth of approximately 220m. • Average crane productivity at SAGT is 29 moves per crane per hour. • SAGT has several ongoing project to further increase efficiency, such as implementing expert decking and a new TOS module. Category Item Value Unit Reach Stackers 2 # Straddle Carriers - # RTGs / RMGs 31 # confidential Colombo Port Development Plan | March 2019 Page 70 Gantry Cranes 12 # Mobile Harbour Cranes - # Berth Length 940 m Water Depth 15.0 m Terminal Area 200,000 m2 Yard Area 120,000 m2 Terminal Capacity 1,950,000 TEU Reefer Plugs 540 # Item Unit 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Throughput x1,000 932 1,335 1,547 1,726 1,750 1,970 1,963 1,870 1,747 1,662 1,371 1,632 TEU Operations The following observations can be made from operation point of view: SAGT operates 12 ship to shore gantry cranes. Out of the total fleet of 12 cranes, 3 gantry cranes are Post Panamax type with an outreach of 19 container rows across and 9 cranes are of the Super Post Panamax type with an outreach of 21 rows across. The terminal operations concept is based on the classic Rubber Tyred Gantry (RTG) system for yard handling. The operations are driven by the NAVIS N4 Terminal Operating System (TOS), which is today’s Global standard. About 60% of the container terminals world-wide are using this TOS system. The terminal seems to be well managed. Current productivity is 29 moves per crane per hour; the target is set at 33 moves per hour. This is a competitive terminal operating performance. SAGT has projects ongoing to improve the terminal efficiency among others to apply Expert Decking, a new TOS module, to increase the efficiency of the yard. SAGT management is very focused on improving its service levels and as such to strengthen its competitive position in the Port of Colombo and in the region. confidential Colombo Port Development Plan | March 2019 Page 71 Figure 3-3 SAGT Terminal The facility is blocked to future grow due to limited water depth – only 15 meters – and a very small footprint. While the SAGT terminal has a total quay length of 940 metres, the width of the terminal is only 220 m, which is extremely narrow for a modern container terminal. The very large container vessels, which have draughts exceeding 14.0m, can’t berth at the SAGT terminal, so SAGT has to aim for another market segment than CICT and the future ECT and WCT terminal(s). Specifically, the SAGT is well suited to accommodate vessels Colombo International Container Terminal Colombo International Container Terminal (CICT) is a Joint Venture between China Merchant Port Holdings Ltd (85%) and the SLPA (15%). The CICT terminal is operated under a 35-year BOT agreement, which was signed in 2011. The table below provides an overview of the facilities at the terminal, as well as historic throughput figures. The following key observations can be made regarding CICT’s facilities and throughput: • Container volumes have increased from 0.7 M TEU in 2014 to 2.0 M TEU in 2016. • CICT has a water depth of CD -18.0m. • CICT has a terminal depth of 435m. • Average crane productivity at CICT is 33 moves per crane per hour. confidential Colombo Port Development Plan | March 2019 Page 72 Category Item Value Unit Reach Stackers 6 # Straddle Carriers - # RTGs / RMGs 40 # Gantry Cranes 12 # Mobile Harbour Cranes - # Berth Length 1,200 m Water Depth 18.0 m Terminal Area 580,000 m2 Yard Area 400,000 m2 Terminal Capacity 2,800,000* TEU Reefer Plugs 1,150 # Item Unit 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Throughput x1,000 - - - - - - - - 58 687 1,562 2,003 TEU *The original design capacity of CICT was set at 2.4 M TEU per annum; however, during interviews and site visits it was noted that current capacity is estimated at 2.8 M TEU per annum. Operations The following observations can be made from operation point of view: The CICT terminal is a modern container terminal equipped with 12 ship to shore gantry cranes (Super Post Panamax type) with an outreach of 23 container rows across. At the CICT quay, a water depth of 18 meter is available. The terminal is fully equipped to accept the newest 21,000 TEU vessels. The current crane productivity is 33 moves per crane per hour which is a very competitive handling speed. CICT is the only terminal in Colombo port handling the very large container vessels. confidential Colombo Port Development Plan | March 2019 Page 73 Similar to JCT and SAGT, the stacking of the containers at the terminal yard is managed with Rubber Tyred Gantries (RTGs). A total fleet of 40 RTGs is available for the terminal operations, capable of stacking the containers in the yard blocks six layers high and 6 rows wide which allows for a very high yard density. In November 2017, CICT has completed a project to convert the complete fleet of diesel-driven Rubber Tyred Gantry cranes (RTGs) to electric-powered rubber-tyred gantry cranes or E-RTGs, making a major contribution to efforts by the Port of Colombo to create a sustainable and environmentally friendly port. The terminal processes are steered by the corporate standard terminal system CTOS, which is a Chinese terminal operating system. CICT is working continuously on improving its service levels. The next step is automating the truck gates by applying Optical Character Recognition (OCR) technology. On the 3rd of July 2017, CICT won the award ‘Best Container Terminal Asia’ in the under four million TEUs category at the 2017 Asian Freight, Logistics and Supply Chain (AFLAS) Awards in Singapore. confidential Colombo Port Development Plan | March 2019 Page 74 3.3 Current situation and historic demand development Historic Volumes The container trade comprises the largest cargo segment in the port of Colombo in terms of volumes, accounting for approximately 90% of tonnage handled in 2016. The graph below presents the evolution of containerized cargo volumes over time, split between gateway, transhipment and re-stowage containers. It can be observed that container throughput increased from 1.0 M TEU in 1995 to 5.7 M TEU in 2016 (CAGR: 8.43%). Transhipment volumes account for the majority of container throughput in the port, with a share of 75.9% in 2016. This share has increased gradually, from 66.8% in 1995. Figure 3-4 Container Throughput - Total Volumes Subsequently, the figure below presents a more detailed view of the gateway containers, split between laden imports, empty imports, laden exports, and empty exports. It can be observed that nearly all imports are laden, whereas more than 50% of export containers were empty in 2016. Moreover, the share of laden export containers has decreased from 72.6% in 1995 to 41.8% in 2016; this indicates a growing trade imbalance. Figure 3-5 Container Throughput - Gateway Volumes confidential Colombo Port Development Plan | March 2019 Page 75 3.4 Container Vessel Size Development The shipping companies are continuously ordering more of the largest vessels, Ultra Large Container Vessels/Mega vessels, which are deployed on the main East West trades. This results in a cascading effect to smaller direct trades, which also receive larger vessels. The table below presents the various classes of container vessels, and assesses the ability of Colombo’s south port and old basin to accommodate these classes. Table 3.2 Container Vessel Types Container TEU LOA Beam Draught III IV - - I / II I / UCT CICT vessels capacity (m) (m) (m) - SAGT JCT JCT JCT Small Feeder <1,000 70 - 13 - 4 -8.4 YES YES YES YES YES YES 160 25.5 Feeder 1,000 - 146 - 22 - 8.3 - YES YES YES YES YES YES 1,999 205 32.2 11.0 Feedermax 2,000 - 189 - 22 - 11.5 - YES YES YES YES YES YES 2,999 237 32.2 12 Panamax 3,000 - 237 - 32.2 12.4 YES YES YES YES YES YES 4,999 294 Post Panamax 5,000 - 300 - 49 15.2 YES Partly Partly Partly NO NO 9,999 366 New Panamax 10,000 – 336 - 48.7 15.5 YES Limited Limited NO NO NO 14,000 365 Ultra Large 14,000 366 - 49 - 59 15.2 - YES NO NO NO NO NO Container and 400 16 Vessel larger From the table it can be observed that there are no size restrictions in the South Port.
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