Sri Lanka SAGT Terminal Handles Record High Volume of Containers

13th January 2010, www.lankabusinessonline.com

Sri Lanka's privately owned South Asia Gateway Terminals at Colombo port handled a record high volume of containers despite a global economic slump which reduced shipping volumes worldwide, data released by the firm showed. Volumes at SAGT were up 1.4 percent to a new annual high of 1,749,796 TEUs (twenty foot equivalent units or containers), analysts said.

Volumes rose 26.5 percent in December to 155,691 TEUs from a year earlier. It was also higher than the November volumes of 153,793 TEUs.

Total volumes at SAGT have largely been growing this year, although domestic import/export volumes have been hit by a slump in trade due to the global recession affecting trading markets.

In 2009, SAGT transshipment volumes increased by 4.83 percent but domestic volumes dropped by 8.18 percent over the previous year.

The bulk of SAGT's business consists of low margin transshipment traffic, which accounted for 78 percent of SAGT's throughput in 2009.

The South Asia Gateway Terminal is one of two terminal operators at the Colombo port and is 42.2 percent owned by listed John Keells Holdings.

The other is state owned Jaya Container Terminal (JCT), the port's main transshipment facility, has seen a slowdown in volumes.

Colombo port's total container handling in September, the latest month for which figures are available, were down 4.7 percent to 319,818 TEUs from a year ago.

The JCT, which handles much of the island's export and import boxes, was hurt by a sharp contraction in trade, as demand for exports and imports were reduced by a recessions.

Colombo is South Asia's main hub port, where cargo is shipped on feeder vessels to and from smaller ports in the.