Lanka poised to become maritime hub

By Shirajiv SIRIMANE

When it comes to naval trading and passenger movement in Sri Lanka the Colombo Port has been the only viable choice for centuries.

Although several requests were made to develop other harbours in the country, this was never taken seriously, which resulted in Sri Lanka losing its competitive advantage as a naval hub in the region.

President Mahinda Rajapaksa saw the economic advantage the country would have if the marine network was strengthened and a master plan was spelt out in the Mahinda Chinthana to develop the harbour network.

As a political leader who puts his promises to action, President Rajapaksa, for the first time in the country's history, decided on five ports including the building of two new international harbours in Hambantota and Oluvil. Incidentally, the idea of building a port in Hambantota was first suggested by none other than the late Minister D.A. Rajapaksa back in 1946. Some politicians in the Opposition claimed that this development would be confined to 'plans' or 'foundation stones' as these were attempted by previous political leaders.

Oluvil Port An artist’s impression of Magampura Port

However, true to the Mahinda Chinthana, the development of the five harbours is on schedule and the Magampura (Hambantota) harbour is to be opened on November 19, ahead of schedule. The Oluvil harbour would be developed as a dual purpose harbour catering to both cargo and fisheries.

Both Trincomalee and Galle harbours would be developed as tourist harbours in a bid to meet the future demands of the leisure industry.

"There were plans even 20 years ago but they were never implemented," said Chairman, Sri Lanka Ports Authority (SLPA) Dr. Priyath Wickrama. He said international pressure as well as local politics halted the progress of the ports. "However, President Mahinda Rajapaksa was able to crush this pressure and obtained the funds to get the project off the ground," he said. The Magampura Port is one of the first inbuilt harbours in the region which will result in the Sri Lankan geographical map being changed. Initially it will be able to handle three ships at a time. The total cost of the project amounts to US$ 361 million. The main reason for building it at Hambantota is the international maritime route just a few kilometres away. "Over 200 vessels sail daily close to the harbour and we want to attract at least some of this market," he said.

One of the stalwarts of the local maritime industry, Ariyaseela Wickramanayake said that due to the delaying of expanding the proposed harbours other countries took advantage and built several harbours. "The delaying tactics also made the projects more expensive as the cost of building materials has increased," he said.

Oil tank farm

In a bid to make the project more viable,an oil tank farm project is also being constructed with an investment of US$ 76 million. The port will also have the facilities to handle and pack bulk cargo of cement and fertiliser in addition to the storage of fuel and LP Gas.

He said that the port would be a free port to attract these vessels. A $550 million tax-free port zone is being set up outside the port, with local and international companies expressing interest in setting up shipbuilding, ship-repair and warehousing facilities in the zone.

Most importantly, the Magampura Port is expected to provide indirect employment to over 50,000 people.

One of the other burning issues of the local naval maritime sector was the expansion of the Colombo Port which was getting congested.

This project has finally got off the ground on a directive of the President.

The contract for the first phase has been awarded to a consortium consisting of China Merchant Holdings International and Aitken Spence. The project involves dredging and a breakwater construction sufficient to accommodate three terminals, to be constructed sequentially. The project includes the establishment of a new marine operations centre the relocation of a submarine oil pipeline, provision of navigational aids, and construction of shore utilities.

Chairman Dr. Wickrama said the construction of the new US$ 450 million container terminal is expected to start within six months. It would be built by the same Chinese contractor China Harbour Engineering Company and Sino Hydro Corporation that is building Magampura Port.

Construction work on the dual purpose Oluvil Harbour project, launched under the "Neganahira Navodaya" program is nearing completion. The commercial harbour will be able to accommodate 5,000 ton ships.

This will be a major incentive for the fisheries sector and several companies are already planning to set up ventures related to the fisheries sector in Oluvil.

Due to the building of the two ports in Hambantota and Oluvil, entrepreneurs in these areas would get the opportunity to export their products directly, eliminating the middle-man.

The project costing Euro 46.1 million is funded by the Nordea Bank of Denmark. The main harbour will have a pilot station, warehouses and an administration building. Meanwhile, the fisheries harbour will have an ice plant and cold storage facilities, fish auction halls, refrigerated storage, net mending facilities, and administration buildings.

The five ports would help drive the country's economy forward and people are expressing their gratitude to the President for taking the initiative to go ahead with these projects.