H’tota Port to get US$ 400mn ship repairing centre

13 July 2015 02:56 am - 0 - {{hitsCtrl.values.hits}}

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SLPA says renewing bunkering operations with private sector

By Chandeepa Wettasinghe
A ship repairing centre with an investment of US$ 400 million consisting of dry docks and floating docks will be constructed at the Hambantota Port in the near future, while fuel bunkering services will be renewed, according to Sri Lanka Ports Authority (SLPA).

“There are big investors who are attracted to the Hambantota Port. There has been a request to construct a dockyard. After the elections are over, and following discussions with the President and the Prime Minister, we will take forward these developments,” Shipping and Aviation Minister Arjuna Ranatunga said. The dockyard and support services, along with a container terminal were expected to be implemented under Phase III of the Port which was set to complete by 2023. It is yet to be seen whether, or when the final phase will be undertaken.

Since the Hambantota Port is now being viewed as a bulk cargo trans-shipment port catering to the Indian subcontinent and the greater Asian region, SLPA is reviewing all past feasibility studies, and is considering all options regardless of the orthodoxy, sources told Mirror Business.

“When investors come in the future, we will conduct feasibility studies and repayment measures prior to undertaking a project,” Ranatunga stressed.
SLPA is expecting to repay the commercial loans undertaken for the Hambantota Port amounting to nearly US$ 1.5 billion through revenue accrued from operations in Hambantota.

Therefore, it is seeking to renew the fuel bunkering operations which were started with an investment of US$109 million by the previous regime.

However, the bunkering operations, directly managed by SLPA had brought a US$16 million loss to the country in 7 months since commencement in June 2014, before operations were halted by the new regime.

“The operations were not carried out in a proper manner or standard. New operational activities of the fuel complex will be commenced by us in the coming months. It is expected to obtain the assistance of bunker brokers for this purpose,” SLPA said.

Shipping sources said that bids have already been called from the private sector also to carry out bunkering operations at the port.

Previously, no private party was allowed to carry out bunkering operations at the Hambantota Port.

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H’tota Port to get US$ 400mn ship repairing centre

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