Car carriers in Hambantota after May 31:

Development projects to expand ports

By Ranil WIJAYAPALA

Sri Lanka's aim to become the Asian shipping hub is not a daydream. The realisation of this goal is now being achieved systematically with new improvements taking place in each and every harbour in the country with the Ministry of Ports and Highways taking the initiative to increase the capacities of these ports through various expansion and development projects.

Major development drives are now in place at the Colombo port that is ranked 29th in the world's busiest ports list. It is now in the process of completing its expansion project, the Colombo south harbour development project with the Asian Development Bank assistance.

Secretary to the Ministry of Ports and Highways, R.W.R. Pemasiri in an interview with the Sunday Observer said that the expansion and development of major ports in Colombo, Hambantota, Galle and Trincomalee aims at increasing the revenue of the Sri Lanka Ports Authority to Rs. 45 billion in the year 2013.

"Our targeted revenue for the year 2012, through these ports is Rs.38 billion," Pemasiri added.

He said the expansion of the Colombo Port is now being done with the assistance of the Asian Development Bank. Under the phase one the SLPA has done a breakwater and three container terminals.

"Under the phase II of the Colombo Port expansion project there will be another additional container terminal. The depth of the terminal is around 18 to 21 meters and the basin area will be around 285 hectares. Three berths will be there," he added.

The estimated project cost is around Rs.500 million and the South Container Terminal is expected to commence its operations by May 2014.

The expansion of the project aims at increasing the number of containers or Twenty Equivalent Units by another 2.4 million.

"We are targeting to increase the handling of TEUs to 7.5 million by the year 2020 in the Colombo port. At the next stages our aim is to increase this number to 16 million in 2030 and 23 million TEUs in 2040," Pemasiri added.

The Sri Lanka Ports Authority took measures to improve productivity in 2011 by installing new equipment to reduce the turn around time at both Jaya Container Terminal (JCT) and South Asia Gateway terminal Limited (SAGT0).

Pemasiri said, in addition to the expansion of the Colombo port the Ministry is planning to construct a new administration building to house all the businesses under one place and not have buildings scattered all over the port area. "We are planning to do this in the near future," he added.

With the increase of the container handling at the Colombo port the necessity to have a proper cargo handling centre has also arisen and the Ports and Highways Ministry is now planning to have this facility soon.

"To ease the congestion in Colombo, the SLPA is planning to develop a cargo village at Peliyagoda by the side of the new Fish Market," Pemasiri added.

According to Pemasiri, Peliyagoda cargo village will be aimed at reducing the congestion in Colombo city. "To achieve this objective we are expecting to have a rail link to transport containers from Colombo port to this cargo village. It also aimed at reducing the transport cost", he added. The cargo village is expected to be set up at a 200 acre land in Peliyagoda by the side of the Fish Market and the Manin market is to be shifted very soon.

"At the moment we are planning it and we need to acquire additional lands and the entire project might cost Rs.5 billion and within next two to three years it will be completed", he added.

To ease the congestion at the Colombo port the Ministry of Ports and Highways has decided to shift car carriers to Magampura, Mahinda Rajapaksa port.

SLPA is expecting around Rs.45 billion in 2013 as its revenue. In 2016 we are expecting around Rs.58 billion revenue from Colombo. In the year 2012 it will be around Rs.38 billion. "Car carriers will come to Hambantota after 31st of this month. All the car carriers will go there to unload the cars there at the Hambantota port. Then we can make use of the space used for car parking in the Colombo port", he added.

He said arrangements have been made to station the Customs and the SLPA staff and the others in the existing building to facilitate the process through the main administration building which is now being built is due to open at the end of this year.

"At present Customs officers will open their office and the SLPA will have a office there and they can actually function there right now to facilitate the process. Therefore, we don't think there will be any problem", he added .

The Secretary said all vehicle importing agents have given their consent for this and they will start operating from the Hambantota port at the end of this month.

"We had discussions with the agents and they all agree for this. Initially there may be a few hiccups but later it will be OK. Once we start the car carrier business then we may be able expand our activities for other things also.", he added.

Apart from that, the SLPA has also taken the initiative to complete the bunkering facilities at the first phase of the project.

"Very soon we will be commissioning the bunkering facility as we have got the approval from Ministry of Petroleum Industries.

We need to do the testing on the bunker facility and after that we can operate that facility there at the port", he added.

However, he said the SLPA has not yet fixed a date for this. " We have not yet fixed an exact date for this but it will happen very soon", he added.

He said with the arrival of car carriers to Magampura port, they will know the exact situation there and through that other shipping lines will also be encouraged to come there for their commercial activities.

"With the commissioning of the bunkering facility, more shipping lines will come there", he added.

He said President Mahinda Rajapaksa is due to visit the port on May 23 to inspect the progress of the second phase construction of the Magampura port.

"Since we are constructing this port as an industry based port, the SLPA has called for proposals and they have selected four entrepreneurs to start industries at the Magampura port. We had some problems with the land allocation for these industries and now they have been resolved. That will be done within the next two - three weeks", the Secretary added.

He said the second Request for Proposal was also called and through those proposals also another set of entrepreneurs will be selected to industries there. "We are encouraging more investors to come there to start their industries.

To have easy access to the port from the Mattala airport, authorities also have taken the initiative to construct an expressway from Hambantota port to Mattala airport. "It will be around 20 kilometres and the work of that road will also be started very soon", he added.

The Secretary said that the Ministry has called for RFPs to start industries around Trincomalee harbour also.

" Now we are in the process of demarcating the Port boundary enabling us to lease lands for the private investors to start their industries there", he added.

He said they are now considering to develop Galle port as a leisure port. "For the moment we are studying plans. There is a difficulty in expanding the port. Until studies are finalised it will be open for anything. But at the moment our plan is to develop the Galle harbour as a leisure port", he added.