Hambantota Port to Handle car carriers & Break Bulk Cargo at 30pct Discount on all Items except Pilot Fees & Tug Charges

23rd July 2011, www.dailynews.lk, By Ravi Ladduwahetty

The Hambantota Port will now handle vessels carrying motor cars due to the berthing delays in the Colombo Port.

“The Hambantota Port is now capable of handling ships and at our last meeting with the Sri Lanka Ports Authority it was decided that if possible to divert the car carriers to Hambantota Port as they are subject to berthing delays at Colombo, Ceylon Association of Ships’ Agents Nimal Ranchigoda told the 45th CASA Annual General Meeting at the Hilton Colombo on Wednesday.”

“It was agreed that CASA members who handle car carriers discuss this aspect with their Principals, the Ceylon Motor Traders’ Association and if consensus is reached, then to go proceed with the berthing of car carriers at Hambantota,” he said.

He also said the SLPA Chairman has advised CASA that all geared vessels handling bags and break bulk bargo could be handled at Hambantota. He also confirmed that the current SLPA tariff will be applicable with a 30% discount on all items except the Professional Pilot Fees and the Tug Charges. Commenting on the Colombo Port, he said the port has experienced a total growth of 4% to date in 2011 when compared to 2010.

The CASA Chief also noted that shipping lines did recover financially in the second half of 2010 from the very serious financial and economic crisis they did encounter during the last quarter 2008, 2009 and the first quarter of 2010.

But however all shipping lines did end 2010 making profits. The start of 2011 due to a decline in world trade volumes and low freight rates made all shipping lines incur losses in the first quarter 2011 but they were nothing when compared to the losses suffered in the first quarter 2010.

He said that he referred about newspaper reports in his address last year saying that the shippers in the Asian Region have raised objections to some so called anti-competitive charges levied by shipping lines.

Subsequently in November 2010, President Mahinda Rajapaksa in his capacity as the Finance Minister made special reference in his budget proposals to Sri Lanka’s export industry which is said to be hampered by anti competitive practices of shipping lines and as a result that Sri Lankan exporters were subject to various charges imposed by the shipping lines.

He also stated that these charges resulted in a serious drain of foreign exchange and tax evasions.

The CASA executive committed having very carefully studied the position conveyed by the budget proposal have officially conveyed CASA response to the relevant authorities.

The CASA position is that there was no drain of any foreign exchange nor any tax evasions whatsoever. The charges levied by shipping lines in respect of imports are universally applied in all countries these shipping lines serve.

“While some charges are a cost recovery and others are applied as a deterrent, to ensure the trade comply with the documentation and other requirements of shipping lines therefore such charges are not peculiar to Sri Lanka,” he said.

Related Info :

• Sri Lanka to Open Bunker Terminal at Hambantota Port. $130mn Facility Offers Capacity of 82,000 Metric Tonnes

• Sri Lanka Opens Bids for Industries by 25 Parties at Hambantota Magampura Port Next Week

• Sri Lanka's Hambantota Harbour 1st Phase Completes with Filling of Water by President Mahinda Rajapakse

Sri Lanka's Game Changing Next Port of Call. Standard Chartered Highlights Ports Development in Sri Lanka Driving Economic Growth & Boosting Revenue

13th May 2011, www.island.lk

Global banking giant Standard Chartered Bank says the Sri Lankan government’s push to develop the country’s ports is likely to be a game changer; increasing trade, driving economic growth and significantly boosting revenues. However, fiscal constraints are a major dampener to Sri Lanka’s prospects given the inadequate and inefficient capacity of the existing ports.

Sri Lanka must act quickly, because major port developments in South India pose a threat to the island-nation’s ambitions of being a maritime hub delivering greater economic dividends to its people.

Standard Chartered Bank Research Economist Samantha Amerasinghe in a paper titled ‘Sri Lanka: The Next Port of Call’ in the bank’s latest periodical ‘Global Research: On the Ground’, says the development of Sri Lanka’s ports would have a strong multiplier effect on direct and indirect employment generation.

"The current push to develop ports is likely to be a game-changer, allowing Sri Lanka to benefit from increased trade. The expansions of Colombo Port and Hambantota (Magampura) Port, which is set to be the largest port in South Asia, are expected to drive economic activity and significantly boost revenues in the years ahead.

"However, a strategic location alone is not sufficient to achieve the status of a regional trade and logistics hub. The South Asia region is becoming highly competitive, and addressing capacity constraints and modernising port operations through new technology are crucial," the research paper said.

The existing port capacity is inefficient and inadequate, reflecting the broader structural problems the country has had to deal with which has constrained economic growth by hindering trade. Over the years, governments have not engaged in large infrastructure development projects, but with the end of the thirty year conflict, the research paper says the tide has turned.

"In a bid to improve the country’s competitiveness and attract investment, the government has identified ports infrastructure as a critical area for development," it said. But there are concerns.

"From a fiscal perspective, we are concerned about the government’s ability to spend on ports and aviation to achieve hub status (approximately 17 percent of total capital expenditure is earmarked for ports development, second only to the 34 percent allocated for highways expenditure), given other priorities such as education, health and rural infrastructure.

"That said, the economic benefits of ports development far outweigh such concerns, as large-scale projects of this nature have strong multiplier effects on direct and indirect employment generation. Furthermore, the development of ancillary industries such as oil bunkering will have indirect economic benefits. Colombo, Galle and Trincomalee ports employed 12,828 people in 2010; the development of Hambantota port alone is expected to create 50,000 jobs."

Benefits of developing Sri Lanka’s ports

The Standard Chartered Bank research paper says revenue from Sri Lanka’s ports, once completed and fully operational, would triple revenue from current levels to Rs. 72 billion.

Lower freight rates and faster delivery would result in savings amounting to US$ 82 million by 2015. (The average turnaround time in Hong Kong is 10 hours, whereas it is 18 to 24 hours in Sri Lanka.)

Direct payments from transshipment alone are expected to increase the contribution of ports to GDP by an additional 0.1 percent.

FDIs, which amounted to US$ 460 million in 2010, would amount to US$ 800 million in the ports sector alone.

South Indian port development a threat, Lanka could lose US$ 52mn

* High prices, labour unrest short-term respite for Sri Lanka

The Standard Chartered Bank research paper says the development of ports in South India pose a threat to Sri Lanka’s ambitions of becoming a regional maritime hub.

"Although Sri Lanka is strategically positioned on the east-west maritime route, its ports sector faces stiff competition from regional counterparts. India’s port development activities and changing sea routes pose a threat to Sri Lanka’s ambition of establishing itself as a shipping hub.

Sri Lanka’s ports are currently also a partial gateway to the southern and eastern parts of the Indian peninsula, providing trans-shipment services for the import and export trade of the southern Indian states of Tamil Nadu, Karnataka, Hyderabad, Kerala and Kolkata.

Sri Lanka must keep a close watch on current developments in the ports sector in the region, where port infrastructure is rapidly being enhanced, while ensuring that investments do not result in under-utilisation of resources and assets. Major shipping lines call at Colombo Port primarily to trans-ship volumes of containers to India’s Southern ports," the report says.

Sri Lanka currently commands an 18 percent share of India’s transshipments (70 percent of total container volume handled by Sri Lanka) and has nothing to fear as India’s pricing is three times higher.

"If (Indian port) prices are lowered, this has the potential to threaten 80 percent of the transshipments handled by Sri Lanka, which are worth US$ 52 million. Labour unrest in Indian ports may provide some respite for Sri Lankan competitors, but if the island-nation is to compete with regional players, it needs to act fast to modernise its ports and overcome operational shortcomings.

Hambantota Magampura Port Investor Proposal Evaluation to Start Soon

19th October 2010, www.dailynews.lk, By Indunil Hewage

Evaluating investor proposals to grant permission to set up new ventures in the Hambantota port is in progress.

The project committee will complete the evaluation process shortly, Hambantota Port Chief Engineer Agil Hewageegana said.

Currently, 27 investors have bid to set up commercial projects in the Hambantota port.

Earlier, 63 documentations had been taken by foreign and local investors to submit their proposals.

Accordingly, six investors have bid for the cement industry, two investors for the vehicle assembling, three investors for warehousing, one investor for a sugar refinery, one investor for fertilizer and two investors for petro chemicals. "Initially we are assessing the technical eligibility of investors. We have to assess the financial statements of the companies upto August, 2009 before granting permission for them to set up ventures.

Following the approval, investors will have to set up ventures within one and a half years.

"However, most investors have shown willingness to set up ventures in October and November this year," Hewageegana said. A few months back the Government requested project proposals from potential investors to establish ventures in the Hambantota industrial port. Earlier, the deadline for accepting project proposals was September 30. Investors requested more time to submit proposals and the committee extended the deadline to October 15.

Related Info:
Hambantota Magampura Port Completes Water Filling

Council for Business with Britain & Hambantota Chamber of Commerce Field Trip to Gain Information on Infrastructure & Development Work

Sri Lanka Hambantota Port Proposals Extended until October 15th

Hambantota Magampura Port Completes Water Filling

08th October 2010, www.news.lk

The filling of the Harbour Basin with water was initiated on the 15th of August. An area of 43 hectares with a height of 16 metres has already been filled. The Magampura Harbour is one of the five Ports that are coming up around Sri Lanka with the purpose of making the country the Shipping Centre in the future, based on the Mahinda Chinthana.

The expected expenditure is around 360 million US Dollars. The old Kataragama-Hambantota Road which separates the Harbour Basin and the sea will be demolished within the next few days. Accordingly the access road to the harbour and the sea would be linked.

The Oil terminal Complex which will cost 76 million rupees will comprise 14 tanks. Construction work on the 15 storeyed Administrative Building has also commenced. Chairman of the Ports Authority Priyath Banduwickrema said the first ship is to anchor there in November and three ships can be harboured into the port in the first stage.

In the meantime, the Ports Authority has informed the public that no visitors will be entertained after the 15th of this month as work on the linking of the access road to the harbour and the sea will be carried out.

Related Info:
Sri Lanka Hambantota Port Proposals Extended until October 15th

Sri Lanka's Hambantota Harbour 1st Phase Completes with Filling of Water by President Mahinda Rajapakse

Sri Lanka's Mattala International Airport to be Ready in 2012. Hambantota Airport will be an Alternative to BIA, Colombo

Sri Lanka Hambantota Port Proposals Extended until October 15th

28th September 2010, www.dailynews.lk, By Indunil Hewage

Accepting project proposals for setting up new ventures in the Hambantota port has extended upto October 15. Project applications will be evaluated within a week after accepting the proposals.

The closing date for accepting applications was September 30. Hambantota Port Chief Engineer Agil Hewageegana said investors have requested a time extension from the Port for submitting their documentation.

Currently, 54 local and foreign investors have taken the required documentation.

Mass scale local cement manufacturing companies have also taken the documentation to submit their proposals.

It is expected that more local ventures, foreign ventures and foreign ventures collaborating with local companies will be set up in the 140 acre land.

Related Info:
Sri Lanka Hambantota Magampura Port Invites Investments of $1.5bn, Largest Single Investment Option for Foreign Investors

Sri Lanka Hambatota Magampura Port Draws Dubai & Singapore Service Providers

Sri Lanka's Hambantota Port Will Be A Free Port with No Tax Involvement

03rd March 2010, www.dailynews.lk, By Sanjeevi Jayasuriya, Pictures By Saliya Rupasinghe

Hambantota which is an industrial port will be a free port with no tax involvements. Users are free to use the port for loading, value addition and distribution without any taxes. “Our target is to start cargo handling operations before the end of this year with the expected investments in place”, Sri Lanka Port Authority (SLPA) Chairman Dr. Priyath B. Wickrama told Daily News Business.

“The free port concept will enable the port users to operate without additional charges other than port handling and rent or lease charges,” the Chairman said.

“The Hambantota Port could meet the revenue target by attracting 10 percent of the ships passing the port. Therefore, special emphasis is paid to the facilities offered by the port to make it of high standard and quality, he said.

Container handling at the Colombo Port. The Hambantota Port will help Lanka’s economy.

The Hambantota Port Phase One will be completed by end of October one year ahead of schedule. It is expected to generate 5,000 direct and 50,000 indirect job opportunities.

Youth in the Hambantota area will have openings for numerous employment avenues and it is necessary to provide them with technical training necessary for the skilled and semi skilled categories.

The Government is planning to set up a Free Trade Zone between Hambantota port and Weerawila airport. This will also generate many employment opportunities.

“We have a challenge to upgrade manpower to meet the growing demand created by the development activities in the area.

The SLPA has started its own training programs with the assistance of the NAITA and other technical colleges in the area.

However, these programs are not sufficient to train the entire workforce and we seek assistance from technical colleges in Ratnapura, Moneragala and Matara to meet the demand, Wickrama said.

Meanwhile the project committee formed two months back will complete the Request For Proposal (RFP) process and finalize the investor profile for the investment opportunities created by the Hambantota Port development activities within a month.

There will be investment opportunities in cement, fertilizer, warehousing, raw material, multi country consolidation, food processing, assembling and value addition at the port after the completion of this process.

Hambantota Port Phase I Features

* Project Duration : 39 months

* Commencement Date : January 15, 2008

* Project Cost : US $ 361 million

* Design Vessel Size : 100,000 DWT

* Breakwater Lengths : West Breakwater 920m

East Breakwater 310m

* Approach Channel : 210m width at 16m depth

* Service vessel Berth : 105m long

* Oil Terminal Birth : 310m long at 16m depth

* Quay wall (General Cargo) : 600m long at 17m depth

* Administrative complex : 14 Stores with 10,400 m2 floor area

Hambantota Port (Harbour) on Google Maps

Sri Lanka on Google Maps - Areas of Development Activities, Cultural, Religious and Leisure

Adamas Peak : Religious/Cultural

Anuradhapura : Religious/Cultural/Leisure

Arugam Bay : Leisure (Surfing)

Batticaloa : Investment/Leisure (Beach)

Colombo : Investment / Commerce

Galle : Cultural/Leisure (Beach)

Hambantota Magampura Port (Harbour) : Investment












Hikkaduwa : Leisure (Beach)

Jaffna : Religious/Cultural/Investment/Leisure

Kalpitiya : Investment/Leisure (Sea)














Kandy : Religious/Cultural/Leisure/Investment

Kataragama : Religious/Leisure

Kumana - Yala East National Park : Leisure (Wildlife)

Maankulam : Investment

Mannar : Investment/Leisure

Mattala (New Airport) : Investment

Negombo : Leisure (Beach)

Nilaveli : Leisure (Beach)












Norochcholai : Investment/Energy

Nuwara Eliya : Leisure

Pasikuda and kalkuda : Investment/Leisure (Beach)

Polonnaruwa : Religious/Cultural/Leisure

Pulmoddai : Investment

Sigiriya : Cultural/Leisure










Sinharaja Forest Reserve : Nature

Trincomalee : Investment/Leisure (Beach)

Wilpattu National Park : Leisure (Wildlife)

Yala National Park : Leisure (Wildlife)

See Also:
• Sri Lanka Links
• Map of Sri Lanka