Sri Lanka aims to create an Asian shipping hub capable of competing against Singapore and Dubai by pouring $3.4 billion into expanding ports, after the island’s container volumes surged to a record level, states Dredging Today.com, a Netherlands based website in an article titled, Sri Lanka Plans to Become Asian Hub, published yesterday (04 Aug).
"President Mahinda Rajapaksa has a goal of capitalizing on the end of a 26-year war to build a trade gateway to emerging markets, and port revenue may almost triple to 72 billion rupees in 2015 from 2010, it has been estimated", the Dutch media added.
The article further says that the government forecasts rising cargo levels will enable transportation, including ports, to make up 40 per cent of gross domestic product by 2020, a four-fold gain from last year. Economic growth reached a 32-year high of 8 per cent in 2010 amid Chinese investment in roads and harbours.
President Rajapaksa is seeking to take advantage of Sri Lanka’s position—31 kilometres off India’s southern coast. There lie the main shipping lanes linking the Far East, West Asia, Africa and Europe, the article adds.
Deeper berths, new terminals and increased efficiency in the capital, Colombo, and in the South, the Hambantota Port will allow bigger, super post-Panamax ships to dock and transfer cargo more quickly to and from smaller vessels that carry goods for India and other emerging markets.
Container volume in Sri Lanka surged 22 per cent in 2010 to 4.16 million TEUs, the website reported.
Last year’s level was a record, Sri Lanka Ports Authority Chairman, Dr. Priyath Wickrama, said in a June interview, adding that it is expected to rise 10 per cent in 2011 and as much as 20 per cent next year, with target capacity for the capital and Hambantota combined set at 12.8 million units by 2015.
“Hambantota is the most suitable location to feed the Indian subcontinent,” he said.
“A combination of Colombo and Hambantota will compete with Dubai, Salalah and Singapore,” Mr. Priyath Wickrama further said.
Colombo’s three existing terminals currently account for the island’s entire cargo volume. Hambantota is still under development. The goal is for five Colombo terminals by 2015 with a total capacity of 10.8 million TEUs.
President Rajapaksas ports plan aims to tap that prospective gain as well as to deepen trade ties between emerging markets. Port projects are expected to spur more foreign investment and create about 55,000 jobs in Colombo and Hambantota.