Hambantota Port to start operations by end 2010

(July 09, Colombo, Sri Lanka Guardian) Sri Lanka Ports Authority (SLPA) is planning to start operating its upcoming Port in Hambantota by November 2010, said Ports Authority Chairman, Dr. Priyath B. Wickrema.

The construction work of the Port in the Deep South is “5 months ahead of the scheduled completion date” and will see the completion of the 1st phase construction
by 2009 October, he said.

Wickrema also said “ we have completed more than 50% key wall, 40% Excavation work, 100% of the Breakwater construction” while added that once completed the 1st phase will consist of 2 general purpose berths, one Bunkering berth and a small Craft berth which will be 120 meters long."

SLPA is planning to call Requests for proposals during next month from willing investors to invest in projects such as Cement Bagging & Grinding, Fertilizer Bagging, warehousing, Bulk Transshipment, Car Transshipment and Car assembling projects, a BOI press release issued on July 9 said.

The investors can either enter into a Joint venture with SLPA, or get involved in Build, Operate and Transfer projects or run their own operations on leased out lands that is coming under the Hambantota port.

Dr. Wickrema says Hambantota port has ample land space available running up to 2000 hectares, 5 times bigger than Colombo leaving room for continuous Expansion.

He also said they are looking to establish a Food processing company in Hambantota
to cater to the vessels arriving at the port.

The Chairman added, at the moment 10 to 12 investors from countries like China, Australia, India and Russia is speaking with them on possible investment opportunities and has handed over preliminary proposals.

According to Wickrema Hambantota will start Bunkering either during this year or early part of next year and Bunkering is going to be the main revenue stream at the new port.

First phase of the Port will cost 437 million dollars which 85% of it comes from China. The Port is built by a joint venture between China Harbor Engineering and Syno Hydro Corporation. While the Tank farm also been built by a Chinese Firm.

Hambantota port will be a free port where operators will not be “taxed”, Wickrema said along with that and the Geographical advantage upcoming port will give a good competition to ports such as Jebal Ali and Singapore.

Sri Lanka has planned a 3 phase development program for the Port, which once completed will be able to handle 20 million TEU’s. However Wickrema said the 2nd and the 3rd phase expansion will depend on the demand the new port receives.

SLPA says nearly 200 vessels pass Hambantota every day, which is situated closer to a prime international shipping route.

-Sri Lanka Guardian