Port unions oppose SLPA terminal privatisation

Colombo, April 5 (Daily Mirror) - The Ports Trade Unions Joint Alliance has warned it will strongly oppose any attempt to privatise key terminals at the Sri Lanka Ports Authority, claiming that operating them under state control is more beneficial.

In a letter addressed to the SLPA Chairman and President Anura Kumara Dissanayake, among others, the alliance said top management of the Authority had confirmed that both the Eastern Container Terminal (ECT) and the South Asia Gateway Terminals (SAGT) should remain under the Ports Authority.

The unions emphasised their opposition to any move to privatise the ECT or re-privatise the SAGT Terminal, which is currently operated under a 30-year lease with a private partnership.

Citing remarks by the SLPA Managing Director, the letter noted that revenue generated from the SAGT Terminal over 27 years amounted to around US$ 250 million. In contrast, it said even the partially completed ECT could generate approximately US$ 360 million annually.

According to the unions, the Managing Director made these disclosures during a special awareness programme held at the Mahapola Ports and Maritime Institute on April 29, aimed at briefing SLPA executive officers on the current status of the ECT.

The alliance further claimed that once fully completed, the ECT could generate up to US$ 700 million annually. It added that even without essential equipment such as straddle carriers, the first 10 lanes of the terminal could yield about US$ 360 million per year if operated using prime movers.

Recalling past events, the unions noted that a 2020 attempt by the then government to privatise the ECT was defeated following widespread protests by trade unions, civil organisations and the general public, allowing the SLPA to retain control of the terminal.

They alleged that despite election pledges by the current administration not to privatise the ECT, steps are now being taken to prepare for such a move, including directives reportedly issued by the Presidential Secretariat to relevant authorities.

However, the unions said the Managing Director’s remarks reflected the internal stance of SLPA’s top management, which they pledged to support unconditionally.

The letter also raised concerns over the cancellation of a tender to procure straddle carriers equipment deemed essential for ECT operations—and the delay of more than 18 months in reordering them. The alliance alleged that the delay was part of a broader attempt to create conditions favourable for privatisation.

The Ports Trade Unions Joint Alliance, representing a majority of SLPA employees through several affiliated unions, warned it would lead efforts to defeat any move to hand over the terminals to the private sector.

Copies of the letter have been sent to multiple stakeholders, including the President, the Prime Minister and the Leader of the Opposition.