Economic boost for cargo transport :

Five ports developed simultaneously

By Shirajiv SIRIMANE

The Silk Route is the most well-known trading route of ancient Chinese civilization. Trade in silk grew under the Han Dynasty in the first and second centuries AD. The then Ceylon too was one of the key points on this route with heavy trading taking place.

The 7000 mile route spanned China, Central Asia, Northern India, and the Parthian and Roman Empires. It connected the Yellow River Valley to the Mediterranean Sea and passed through places such as Chinese cities Kansu and Sinkiang and present day countries Iran, Iraq and Syria and also Ceylon as Sri Lanka was known earlier and Hambantota (Karagamlevaya) too was one of the most preferred landing points.

Subsequently, the Portuguese landed in Galle and in the last two centuries both Colombo and Trincomalee too were developed. The Trincomalee Harbour is the fifth largest natural harbour and its strategic importance led to many sea battles to conquer the harbour. The Portuguese, Dutch, French, and the English, each held it in turn.

LTTE violence unleashed in the last three decades and naval operations virtually crippled both the shipping and maritime industry. The KKS harbour came into focus during the infamous IPKF episode where Indian soldier landed and military hardware and essential items too were unloaded.

However, in the last few years KKS was virtually neglected and now the government and the Indian government is planning to convert this harbour into a regional port, geared for Indian cargo for the North and Eastern Provinces.

The project will also be funded by the Indian government under its assistance for Northern and Eastern Sri Lanka. The MoU in this regard was signed last Thursday and the project is to be completed in 24 months.

The rationale behind the development of the KKS port will be to have it as a regional port which will be used for Jaffna and Trincomalee-bound cargo from Indian port cities such as Tuticorin and Madras, which will be essentially cement, fertiliser and food items, such as, onions, Sri Lanka Ports Authority Chairman, Dr Priyath Bandu Wickrema said.

The Port will be developed in two stages with the first stage involving repairs to the existing breakwater, jetty and deepening of the harbour. A New breakwater too is to be built. when rebuilt, Sri Lanka Navy is expected to use the KKS port, to replenish its vessels sailing in the area with fuel, water and provisions while transporting its sailors and cargo will continue to use it as the base in the northern peninsula.

When the port is fully developed, it will be used by merchant shipping vessels as well to transport cargo such as building materials to KKS and vegetables to and from the north. The KKS port which was originally built to transport cement from the KKS factory, will be useful with the government deciding to rebuild the cement factory as well.

The opening of the Port would also help to expedite the KKS cement factory operations. The decision by the government to designate KKS as one of the ten entry points to Sri Lanka would give value to KKS and also woo more investments to the area.

The importance of the A9 highway would reduce with KKS operating since cargo could be taken through the sea. New employment opportunities too would be created bringing the much needed revenue to the area.

The Colombo Port is to generate 25,000 jobs under the Mahinda Chintana maritime industry which has been identified as one of the five pillars of development to take the country towards being made the wonder of Asia. In a bid to make this a reality, Sri Lanka now has three international harbours.

Some of the ships docked in Galle The cruise liner operating from Colombo to India

With the second stage of Ruhunu Magampura harbour in Hambantota and Colombo South harbour expansion taking place and the Oluvil harbour expected to be opened at the end of this year SLPA Chairman Dr. Wickrema said that construction of five kilometres of the breakwater of the Colombo South Harbour has already been completed and the remaining two kilometres will be completed before the end of this year.

The length of the terminal of the harbour is 3 1/2 kilometres and 12 large and small vessels can be birthed simultaneously at this terminal.

He said the companies that are constructing the terminals will invest 1.5 million US dollars, and the harbour, upon completion, will earn a revenue of Rs. 1.2 million US dollars annually.

Both harbours in Colombo, he said, will earn a revenue of Rs. 1.7 million thus contributing a considerable amount to the GDP of the country. The Ports Authority has commenced work in building a facility for export containers north of the harbour that will help reduce congestion and provide more space for its main transshipment business.

The Ports Authority has acquired a plot of land in Peliyagoda for building this facility. Dr. Priyath said that the new harbour will generate 25,000 direct and indirect employments.

Steps taken by the Sri Lanka Ports Authority to make Sri Lanka a fuel bunkering hub is gaining momentum. Sales volumes have increased in recent months and the number of bunker supply licence holders had increased to 11 from eight in 2008.

New domestic maritime route.

For the first time in Sri Lanka's maritime industry, a domestic passenger and cargo route is to be created. Deputy Minister of Ports, Rohitha Abeygunawardane said that plans were under way to link Colombo, Galle and Trincomalee with a domestic passenger service.

Galle is already being upgraded to an international tourism harbour and Trincomalee too is being developed. The renovated Jetty of the Trincomalee Harbour was commissioned in 2010.

The renovations were carried out by the Sri Lanka - Indian Oil Corporation at a cost of Rs. 50 million.

The Government has launched a number of harbour development programs aiming at economic development. Under the government's mega projects, five ports are being constructed simultaneously. The commercial operation of the major international new port at Hambantota will commence in November.

Already yachts are patronizing the Galle harbour and many international cruise liners are eying Trincomalee.

The development of Galle Port as a tourist destination will act as a catalyst to economic growth of Southern Sri Lanka. At the next stage, berthing facilities will be provided for passenger cruise ships. The yacht lifting facility and yacht repair workshop will be provided, soon.New business opportunities would emerge as there would be the need to provide them transport facilities, essential items in bulk and several other logistics.

Arrangements are being made to have Customs Immigration and Emigration offices in a more organised manner. All buildings and those acquired will be modified to improve existing facilities and land acquisition is now in progress. In addition the Galle harbour is also looking for retailers to operate the proposed duty free shop. The deputy minister said that the passenger route would link Galle, Colombo and Trincomalee.

He said that with KKS in operation, a maritime cargo network too would be operated. Big container ships could anchor in Colombo and smaller ships can pick up cargo from Colombo and sail to KKS, Galle, Trincomalee, Oluvil and Hambantota.

This would be more economical as large volumes of essential items could be transported and would lead to the reduction of transport cost of goods.

The deputy minister said that this domestic maritime network would also help to bring in more investments to the country especially to the Northern Province as KKS would be a major attraction.