By Azhar Razak
The Ceylon Motor Traders Association (CMTA) last week
expressed their anger to a plan mooted by the Sri Lanka Ports Authority
(SLPA) Chairman, Dr Priyath Bandu Wickrama to move the clearance
facilities of all car imports from Colombo to the Hambantota Harbour
claiming that logistically it was not practical. Their stance is that
since the majority of buyers are from the Western Province, such a move
would only make the vehicles more expensive to the consumer with
additional transport costs to be borne among a series of other
logistical issues to be addressed in such an implementation.
“It is his (SLPA Chairman’s) own version and nobody
has so far discussed this with us. However, such an initiative is not
feasible unless solutions are found to a gamut of arising problems,”
CMTA Chairman Tilak Dias Gunasekera told The Bottom Line.
He cited practical issues such as relocating
Pre-Delivery Inspection (PDI) officers from Colombo to Hambantota, extra
cost factors involved in the transport of thousands of cars from
Hambantota to Colombo, risk of damage in transport among many other
issues that would resultantly crop up.
The CMTA chairman observed that the Colombo Port is
presently only facing a temporary issue with regard to the backlog of
vehicles stranded at the port since the government is yet to take a
decision on whether or not to clear imported used vehicles over two
years. This is because in April 2011, along with tariff revisions the
Customs Department relaxed the regulation pertaining to the importation
of used petrol cars, from 3.5 years to 2 in a move to encourage the
importation of brand new cars and also encourage expatriates to bring in
brand new vehicles for private usage, minimising the foreign exchange
outflow.
“There is a dispute between customs and used car
dealers who have imported cars older than three years over the clearance
of vehicles. Since the Customs stay put on the new two-year rule,
traders cannot clear them. This delay has trickled down to new car
imports as well due to space constraints at the Port,” claimed
Gunasekera who insisted that if this issue was resolved without much
fuss then the shifting vehicles to Hambantota for clearance would not
arise.
The SLPA Chairman, Dr Wickrama had suggested the plan
when he addressed a news conference last week to announce Colombo
hosting the 12th Asia/Oceania Regional Meeting and Port Forum on March 8
and 9, 2012 and also the International Air Freight, Shipping and
Logistics Expo 2012 from March 8 to 12.
“So far we have always had problems because thousands
of cars kept at the port awaiting clearance. The cars are kept outside
of the port and the clearance delay results in more expense.”
If the cars are instead brought to Hambantota then
there is plenty of space and clearance would be faster. Importers would
also have the benefit of reduced tariff charges. The only issue is the
modality by which they can be transported to Colombo, otherwise the
importers are keen,” SLPA Chairman Dr Wickrema is reported to have
stated.
Meanwhile, the Chief Executive Officer of United
Motors Plc, Chanaka Yatawara said that their firm was not ready to a
shift in Port idea since majority of its customers came from the Western
Province.
“Apart from additional costs, this will also create
greater congestion on roads while there will be a risk factor that needs
to be taken into account,” he noted.
Sourse: http://www.thebottomline.lk/2011/08/07/page7.html
Posted on Monday, August 08, 2011 @ 02:38:42 LKT
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