Six parties bid for port digitisation deal

• Industry calls for stronger oversight

By Nishel Fernando

Six parties have submitted bids for the much-awaited Port Community System (PCS), an initiative considered as a crucial step towards digitising port operations and a stepping stone towards the National Single Window (NSW), Mirror Business learnt. This project was initially put to tender by the Ministry of Ports, Shipping and Aviation under the previous government but reportedly faced delays before reaching the current stage. The submission of these bids now marks a significant milestone in a process keenly watched by the maritime industry.

The current logistics procedures in Sri Lanka, particularly at the Port of Colombo, which handles over 90 percent of the nation’s cargo, rely heavily on paper-based systems with limited integrated online capabilities. This has led to delays in cargo clearance, queuing of traffic, and has impacted both customer satisfaction and the nation’s overall competitiveness, a concern highlighted by Sri Lanka’s 73rd ranking in the World Bank’s Logistics Performance Index 2023.

The PCS, officially titled “Design, Development/Customisation, Finance, Operation, Upgrading, Maintenance and Support for the Port Community System for Sri Lanka Ports Authority,” is envisioned as a transformative project to address these inefficiencies, a key focus area outlined in the National Port Master Plan of March 2019. 

It aims to optimise, automate, and manage port and logistics processes through streamlined data submission and enhanced stakeholder engagement, ultimately ensuring sustainable and efficient data exchange while reducing costly paper procedures. The selected implementation partner will be responsible for the system under a managed services agreement for eight years post-implementation.

However, while the call for tenders for the Port Community System has seen six parties submitting bids, and there are reportedly some strong contenders among them, concerns are being voiced within the shipping industry. Sources speaking on condition of anonymity to Mirror Business expressed a degree of caution. 

Six bids received for crucial Port Community SystemShipping industry voices concerns over governmental commitment Urges top-level leadership for successful implementation, citing complexities and stakeholdermanagement

“There are some good parties in there, and some who have brought off-the-shelf solutions,” one industry insider commented. Despite this, a prevalent sentiment is that the necessary “understanding and hunger to implement this is not there, or not sufficient” at the governmental level. These industry players emphasised the critical need for robust oversight and a deep commitment to successful implementation emanating from the highest echelons of government. 

“It has to come from the top,” another source stated. “We believe someone such as Hans Wijeyasuriya must be involved in this to oversee the implementation of this.”

This call for high-level leadership underscores the perceived complexity and national importance of the project, particularly as its success hinges on the cooperation of various stakeholders, including entities like Sri Lanka Customs, which the industry feels requires a strong hand to ensure transparent and efficient adoption due to historical perceptions of corruption.

The tender for this vital system, which aims to bring Sri Lanka’s port operations into a new digital era, was floated last year (2024), as previously reported in the context of Port of Colombo’s operational targets. The successful implementation of the PCS is widely seen not just as an upgrade, but as a fundamental requirement for the port to maintain its competitive edge and to fully integrate with global trade networks.