Ports will help boost economy in three years - Dr. Priyath Wickrama

By Shirajiv SIRIMANE

Sri Lanka's economic situation would change dramatically in three years with the present per capita income of US $ 2,500 rising to 5,000 said Chairman, Sri Lanka Ports Authority (SLPA), Dr. Priyath Wickrama.

He said that the country's ports would be the main driver of this positive economic shift by accounting for 10 percent to Sri Lanka's economy.

"With the current port developments, in five years time the SLPA would play a major role in the country's development drive by contributing 40 percent," he told the Sunday Observer.

He said that five ports are currently being constructed and re-developed with the much awaited and long overdue first stage of the Hambantota Port now being completed. The Hambantota sea area lies in the historic silk route and many ships anchored in Godawaya, a point close to Hambantota. People using the high wind in the mountains near Chandrika Reservoir, Embilipitiya, had wind powered kilns and manufactured steel which was exported through this ancient port to Rome historical sources state.

With the invasions of the Portuguese, Dutch and British they concentrated on the development of the Colombo harbour.

Former Government Agent Hambantota, Dr. Leonard Woolf saw the potential of this port way back in 1910 and requested the British rulers to reactivate this port with no avail.

The untold story

Soon after independence, the Member of Parliament of the area D.A. Rajapaksa, the father of President Mahinda Rajapaksa once again made on attempt to re-start this project. However he did not have enough support in Parliament to go ahead.

It was after three decades that the proposal was once again discussed and they were just confined to discussions in air-conditioned rooms.

Dr. Wickrama recalled that in 2001 the project finally received approval and got off the ground and with the government changing in three months the project simply halted. "I was then a project engineer of the project and was disappointed with this development," he said.

He said that in addition to the country's politics, international political pressure too was a reason for the termination of the project.

"Though the then government did not see the potential, foreign countries saw the imminent threat and mounted pressure." Finally the then Prime Minister Mahinda Rajapaksa decided it was time to go ahead with the project.

A former Shipping Minister from the South was first given this task and he was more interest in converting Magampura to a bunkering facility. When the President assumed office he entrusted the task of building the Magampura Port to the then Shipping Minister, Chamal Rajapaksa who wasted no time to get the project off the ground. Funds too were negotiated from China on favourable terms for the project to move ahead.

Had the project proceeded in 2001 with the building costs at that time it could have been completed for around US $ 150 million as against today's cost of around US$ 400 million. If the project went ahead as scheduled many other international Ports in the region which were constructed in the recent past would not have been built as they would have not been viable with the established Magampura Port. And most importantly if the Magampura Port commenced in 2001. It would have been completed around 2004 and with it Sri Lanka would have converted into an international harbour hub in the region.

Today there is a lot of maritime competition in the region and this is why Sri Lanka was forced to make Magampura a 'free port' "The delay in construction of the port is a crime the country suffers and it certainly deprived the competitiveness and economic advantage Sri Lanka would have had in the maritime sector," he said.

He said as Magampura is geographically located near the international shipping line where there are over 200 vessels sailing daily and Sri Lanka can still make its presence belt in the region. The port boss Wickrama who was following the developments from its inception said that their task is to take 10 percent of this market, which is a simple reality," he said. This would be for bunkering and also to supply other maritime needs for them including repairing of vessels.

In addition the areas would also be open for investors in the fertiliser, food, processing, and cement manufacture and for various other assembly interests. "Several international car manufacturers have expressed interest to set up assembly plants in Hambantota so that they could do value addition and re-export using the harbour," he said.

"Magampura would be an ideal venue for 'made in Sri Lanka' products," he said.

In the future dockyard, ship building and many other activities too would take place in the area.

To supply these manufacturers several new cottage industrialists would be born making Hambantota an area, bustling with economic activity and significantly increasing the cash flow to the residents.

The oil tank projects would be a reality next April opening up another avenue of opportunity. Stage two of the Magampura project will start at the end of November and is to be completed in three and a half years. The investment for this would be US $ 600 million and it would add six more berths.

It is expected to generate over 20, 000 new employment opportunities for the youth in the area.

Colombo harbour

The Colombo South Harbour Development was something confined to drawing boards and plans.

Today with the leadership of President Mahinda Rajapaksa it's now nearing completion increasing the competitiveness of the Colombo harbour.

The cost of the project is US $ 330 million and will be ready by March next year adding three more berths. Sri Lanka Ports Authority (SLPA) would go online from next January which would help the customers immensely.

Dr. Wickrama said that this would reduce time for documentation and would also enable customers to pay via Internet. It would also minimise the 'rush' at the port. "One of the most important features of this would be that it would put a stop to 'hidden money transactions' and increase productivity of the Colombo Port," he said.

He also said that the new customs building would be ready by early next year and this would create a 'one stop shop' for both exporters and importers.

The new customs house would also have bank branches and provide room for shipping agents freight forwarders and many other related company's," he said. Dr. Wickrama said that the Oluvil ports project too has been fast tracked and will be opened early next year. This would be a dual purpose harbour also giving way to the fisheries sector. The total investment would be Euro 49 million and would open opportunities for canned fish production, large deep sea fishing vessels and other related economic activities.

Due to the construction of Oluvil Port, for the first time transport of cargo could be from the sea and exports too could be made from the Oluvil harbour. Both Trincomalee and Galle harbours would be converted to tourist and passenger harbours where even cruise ships could anchor. Dr. Wickrama said that he hails from Walasmulla near Tangalle and his father was a schoolteacher and it was always his dream to do something for the country. Having joined as an engineer he rose to be the Chairman after 'going through the mill' thus becoming the first Chairman to be appointed within the institution. He said that one of the first things a foreign entrepreneur would look before investing in a country is air and sea connectivity.

Dr. Wickrama who was one time Media Secretary of the Fisheries Ministry having worked under the then Minister Mahinda Rajapaksa said that the government in addition to building five Ports and one international airport in Mattala is also re-building a new highway and rail network to make internal travel easier.

"With the commission of the five harbours and the developments at Kankasanthurei harbour no investor should have second thoughts to invest in Sri Lanka," he said.