Hambantota Port overcomes all hurdles

By Lalin Fernandopulle

Sri Lankan ports are among the world's top ports with expansion in capacity and state-of-the-art facilities, Sri Lanka Ports Authority (SLPA) Chairman Dr. Priyath Bandu Wickrama told a seminar on ‘Ports and Shipping’ organised by the National Chamber of Commerce last week.

He said that the Hambantota Port which was the most controversial port in the country has overcome all hurdles to be recognised as a leading port in the region with modern facilities to enhance operational efficiency.

“The Hambantota Port came under criticism for its failure to attract vessels. Today, at any given time there are around three to four ships at the port,” Dr. Bandu Wickrema said.Port experts said that Sri Lanka should improve feeder operators and hinterland connectivity with mega carriers coming on stream. They said that port congestion was a major issue in Colombo leading to a large fleet of container carriers lined at Ingurukade junction which creates traffic congestion.

The SLPA chairman said that with the dry port to be built at Peliyagoda shortly, port congestion would be minimised. Steps have been taken to expedite work on the dry port to ease traffic congestion especially on the Negombo-Colombo and Kandy-Colombo roads.

SLPA has upgraded cargo handling equipment and enhanced performance in all ports. The construction of the terminal at the Colombo port has been completed before schedule. The terminal was to be completed in 2015.

“SLPA targets to attract around 40-50 ships a month and then increase it to around 100 vessels a month by next year. Sri Lanka is sailing on course to be the maritime hub of South Asia,” the SLPA Chairman said.

He said that those sceptical about port development will see the pace of development with the Colombo port city being built.

The Hambantota port is in a strategic location close to a main sea route. The port has handled 9,000 tons of cargo and in July the revenue was Rs. 800 million.

“We are confident that by the end of this year revenue will be around Rs. 15 billion,” he said.

The Colombo port took around 15 years to reach that target. The Hambantota port will surpass the revenue of Colombo by the end of 2015.

The Hambantota Port is being developed as a service and industrial port and it will help boost regional economic growth. The estimated construction cost of the phase 1 of the project is US $ 361 million.

The Colombo South Habour built to increase capacity in Colombo will handle mega ships with a capacity of over 18,000, 20-foot containers. The facilities at the new port will make it the only port in South Asia with a deep water terminal for mega container ships.

“Expeditious development in infrastructure, road development, construction of a dry port, LCL cargo handling at a one-stop centre, automated documentation system and the Sri Lanka Customs initiated Asycuda system will help enhance efficiency and productivity in ports, Dr. Wickrama said.

The SLPA has launched an electronic data system and spearheaded favourable finance regulations for shipping services to boost efficiency of port operations. Steps have also been taken to introduce an automated tax payment system soon.