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Sunday, 5 September 2010

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Colombo Port extension on course

In a quest to make Sri Lanka a shipping hub in the region, government plans are on track to construct three international harbours in Sri Lanka this year.

As promised the first phase of the Magampura Port (Hambantota) was opened last month much ahead of schedule.

Under the 'Mahinda Chinthana' program, five more ports around the country are currently being developed and plans are under way to open the Oluvil harbour in the Eastern province at end of this year. While the government is upgrading the Galle, Trincomalee and Kankesanthurai harbours to international standards, the long overdue Colombo harbour expansion project has commenced.

The present improvement of facilities at Magampura include the development of the existing yard and road network, building a new cargo village, purchasing new equipment for port operations and establishment of a latest computer system enabling the port users to connect the SLPA via the Internet.

The construction of a new administration building enabling the SLPA to extend all its port services under a one stop shop, these measures will make SLPA the most dedicated arm of the national socio-economic development in the future.


The President inspecting development of the Colombo Port last month.

The concrete pods ready to be laid on the sea bed

An artist’s impression of the Colombo Port

Construction work going on

The funds and red tape were the key factors that delayed the much needed expansion of the Port and the initiatives taken by President Mahinda Rajapaksa enabled the project to get off the ground and the Sri Lanka Ports Authority (SLPA) is playing a lead role in taking the project forward.

Colombo Port is the key port in Sri Lanka which handles over 3.6 million TEU per year and it will be further developed as a container hub in future. The Colombo Port Expansion Project envisages the construction of a new port adjoining the existing port but nearly 2.5 times larger.

According to the cargo forecast done by Scott Wilson of UK a few years ago, the potential for container cargo at the Port of Colombo is tremendous and the SLPA will reach its maximum capacity around 4.5 million TEUs in the year 2012.

SLPA has already started the capacity improvement in its yard by increasing the space, introducing new modern quayside and yard gantry cranes, etc.

The-state-of-the-art modern terminal operation system is now operational at the SLPA.

However, the actual performance without any additional facilities is much higher than the prediction. On the other side, the analysis shows the increase in Indian cargo in the near future is also very rapid and at present nearly 13% of Indian cargo is handled through Colombo.

This shows the potential at Colombo as such the Government of Sri Lanka decided to expedite the development works of Colombo Port as an urgent and important project.

The target of SLPA for 2010 is 4 million TEUs and the SLPA is confident that they can achieve this target without any difficulty as on recovery of the global recession during its prevailing years. The port experienced a rapid increase in volume of nearly 20% compared to previous years.

The total estimated cost of construction of harbour infrastructure works at the Colombo Port Expansion Project is US Dollars 330 million and the project is funded by the Asian Development Bank (ADB) and SLPA. The first South Container Terminal will be constructed under Build Operate and Transfer (BOT) terms.

On completion of the terminals in the new port under Colombo Port Expansion Project SLPA has planned to handle 10 million TEUs by the year 2020.

When the entire project is completed SLPA will have three terminals and with the extension of the breakwater it could also have an additional terminal.

The SLPA has already selected the party for this mega development work worth more than 480 million US Dollars and final negotiations are now taking place.

Colombo South container terminal will come into operation in 2012 and second terminal during the period of 2012-2019.

Aitkin Spence PLC and a Chinese company were awarded the contract to build and manage the Colombo Port Expansion project.

With the commencement of the Colombo Port expansion one of the first direct beneficiaries would be the Petroleum Corporation. The pipeline which takes crude oil to the refineries would be re-laid to international standards. Over 10 kilometres have already been re-laid alongside the old line.

This is now in progress and it would enable the petroleum to be unloaded in mid sea and transported via new pipes to the Sapugaskanda refinery without any blockage or wastage resulting in the increase of productivity. The 6.83 km long breakwater of the new port near the Chetiya temple and the Hotel Continental is now nearing completion. Dredging of the basin and the access route to the new Port is now under way while the proposed container yard is being built.

Large stones to fill the breakwater were being transported by sea in supply vessels from Kalutara and Wadduwa areas. Special quarries are being assigned for this.

The proposed Colombo Harbour development project will be located west of the present south west breakwater in an area of approximately 600 hectares. The proposed harbour will have four terminals of over 1,200m in length each to accommodate three berths alongside depths 18m and provision to deepen to 23m to accommodate deeper draft vessels of the future. The channel width of the harbour is to be 560 m and depth 20m, with harbour basin depth of 18m and a 600m turning circle.

The construction of the breakwater by placing core material and outer protection layers of the breakwater have been completed. This is being done with 'concrete pods' being laid one on top of the other making it a strong wall.

These pods were being laid over the sea bed by divers and they are being given instructions by a computer mounted on the crane.

The harbours and the new airport at Mattala and upgrading of domestic airports to high standards would enhance the value of the country specially for investors and make the country even more attractive to them.

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