Macroeconomic Performance and its Impact to Container Throughput at Port of Colombo

Abstract

Services for freight transport have become an increasingly important aspect of global trade. The transport of freight cargo as a result of the shipping industry has very unique characteristics. The creation of container throughput volumes for this research is described in the sense of macroeconomic effect variables. This research will lead to the understanding of how the economic variables of Sri Lanka affect the volume rate of container throughput at Port of Colombo. The study question answered using hypothesis testing using data obtained from the Department of Census and Estimates, Central Bank Reports and Port Annual Reports, and the data is evaluated using a multiple linear regression model of E-Views. There is a linear relation with the defined economic variables for container throughput capacity, except for the inflation rate. There is also a clear correlation, except for the rate of inflation, between the economic variables and all the response variables. At Colombo Port, the Number of Imports & Exports of Sri Lanka were the most explanatory variables for container throughput ratios, where it is seen that Number of exports has a greater effect compared to the other macro-economic variables. In a more macroeconomic context, this analysis adds to the interpretation of container throughput volume trends. Further studies should concentrate on the evolution of broader datasets.