National Insurance Trust Fund Finds Business Opportunities in New Ventures at Hambantota Magampura Port

11th February 2011, www.dailynews.lk, By Indunil Hewage

New business ventures to be set up in the Magampura port premises will bring more business opportunities to the National Insurance Trust Fund (NITF).

A leading company in the world has sought Sri Lankan Government approval to set up a vehicle assembling plant in Hambantota.

At the moment the company has forwarded required documentation for land allocation in the Magampura port premises. The company is planning to export utility jeeps to South Asian countries after assembling the vehicles in the Hambantota, National Insurance Trust Fund Chairman Senaka D Abeygoonasekera told Daily News Business.

He said these ventures will bring more business opportunities to NITF with regard to insurance needs of the company.

The world is looking at Sri Lanka with a lot of hope and Sri Lanka will be on par or better than Singapore by 2020. Enough resources and a knowledgeable population who can adopt to the changing technologies and latest trends in the economy in a speedy manner would assist in achieving set targets in the country’s economy.

Many investors are eyeing Sri Lanka and the Magampura port will also be a vital transit point in the shipping and air cargo facilities generating more foreign exchange to the country, he added.

In addition, National Insurance Trust Fund has made an investment worth of Rs 1.2 billion in 2010 with the Urban Development Authority to support the Colombo Restructuring plan. The investment was made under the guarantee of Bank of Ceylon at the UDA debenture issue.

“Idle lands and old buildings in the Colombo city will be used in the Colombo restructuring project by eliminating the ugliness they bring to the city.

There are so many unauthorized buildings in the city and under the project these structures will be removed while giving unauthorized dwellers alternative accommodation,” he said.

The project will help mitigate the floods and rain water drainage system issues in the Colombo city with the removal of unauthorized buildings which have been put up in an uncontrollable manner,” Abeygoonasekera said.

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

26th January 2011, www.lankabusinessonline.com

Sri Lanka's ports authority will open financial proposals by 25 parties to start industries at a Chinese built port in the island's south next week, chairman Priyath Bandu Wickrema said.

He said a government committee had completed preliminary scrutiny of 25 proposals for suitablility and financial bids for the projects will be opened next week.

Wickrema has said that firms wanting to process cement, iron ore, fertilizer, sugar and vehicle assembly had given proposals.

Sri Lanka's 'Magampura' port in the Southern Hambantota town is a 360 million US dollar Chinese-built project.

It will be used for ship refueling and also as an industrial port. There are about 100 acres available to industries inside the spacious port, an official said.

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Sri Lanka President Commissions Hambantota Magampura Port. 2nd Phase of Construction Begins

18th November 2010, www.priu.gov.lk

Sri Lanka’s new deep sea port 'Magama Ruhunupura Mahinda Rajapaksa Port', Hambantota on the south coast of the island has today (Thursday 18 November) been officially opened with the ceremonial docking of the first vessel to use the port facilities.

At the auspicious time of 11.57am, the second phase of the port began construction.

In a ceremony presided over by President Mahinda Rajapaksa as part of the week long festivities surrounding his official inauguration for his second term in office, a ship dropped anchor in Hambantota’s Magampura harbour to a traditionally warm and colourful Sri Lankan welcome from the huge crowds gathered on the waterfront and quaysides.

Mr. Sang Guowei, Special Envoy of the President of PR of China, Hu Jintao was among those who attended the ceremony. Mr. Sang is the Vice Chairman of the Standing Committee of the National People’s Congress of the People’s Republic of China.

A traditional sailing yacht was chosen in recognition of Sri Lanka’s age old role as a key stopping point on the ancient east-west silk trading route. It was followed into harbour by the Sri Lankan passenger ship Jetliner.

Phase One of the port, operated by the Sri Lanka Ports Authority and completed this year ahead of the scheduled completion in April 2011, is an integral part of the Government’s programme of economic action and reconstruction of transport and trade infrastructure after the successful conclusion of the three decade long struggle against LTTE terrorism. It lies at the heart of a strategy to make Sri Lanka an import/export, marine services and transshipment hub at the locus of key worldwide shipping routes.

The port is located just 10 nautical miles from one of the world’s busiest shipping lanes, used by up to 200 vessels every day, and can handle vessels of up to 100,000 DWT.

A government spokesman said: “The successful completion and opening of the superb docking and cargo facilities at Hambantota epitomises the determination of the Sri Lankan Government and people to capitalise on the opportunity that is offered by the island’s new era of peace, to bring prosperity to all.

“The opening of Hambantota port ushers in a new era which will transform Sri Lanka’s important transport and shipping industry. We look forward to welcoming increased global trade through what is one of the world’s most modern ports.”

Phase one of the new Hambantota port was constructed by the China Harbour Engineering Company at a cost of some US$ 360 million and includes provision for a high quality passenger terminal, cargo handling, warehousing, bunkering, provisioning, maintenance and repair, medical supplies and customs clearing facilities.

The 2,000 hectares of land immediately surrounding the new port is to be developed as a dedicated investment and industrial zone, with 65 domestic and international investor businesses having already expressed an interest. It is anticipated that, once phase two of the Hambantota port project is completed in April 2011, the port will provide 40% of Government income by 2020 and create 10,000 direct and over 60,000 indirect new job opportunities.

Further Government expansion of, and investment in, modern port facilities is underway at Galle, Oluvil, Trincomalee, Kankasanthurai and Colombo.

Lanka IOC to Expand Bunkering Business to Hambantota Magampura Port

12th November 2010, www.dailymirror.lk, By Sunimalee Dias

The company aims at growing with more activities taking place in Sri Lanka, LIOC Managing Director (MD) Suresh Kumar said yesterday. He noted that these changes would be carried out internally in a bid to improve its efficiency as part of an ongoing process.

Kumar observed that should the Government permit it, LIOC would also expand bunkering in Hambantota as well. The Government is expected "to take a view at the appropriate time" in relation to allowing bunkering operations to get underway.

The LIOC MD observed that they believed Hambantota would prove to be of immense value to its operations.

LIOC lost Rs.422 million in the year to March 2010 down from Rs.1, 237 million a year earlier but had boosted bunkering sales to 15 per cent of its total revenues.
The company's sales of bunkers or ship fuel had risen to 149 million litres from just 21 million litres a year earlier.

Revenue from bunkers had grown to Rs.7.7 billion (15.3% of total) from Rs.977 million a year earlier as total revenue rose 5.4% to Rs.50.2 billion.

LIOC is an overseas venture of Indian Oil Corporation Ltd. and is listed in the Colombo Stock Exchange.

Sri Lanka Hambantota Magampura Port Attracts Vehicle Assembly and Cement Manufacture

22nd October 2010, www.lankabusinessonline.com

A new port being built in Sri Lanka's southern Hambantota has drawn investment proposals from local and foreign businesses including the local Senok Combine and Micro Car for vehicle assembly, officials said.

Madras Cements, India's fifth largest cement maker and part of Chennai-based Ramco Group, has also proposed investing in a cement terminal at the port, a greenfield site to be operated as a free port with no taxes.

A Sri Lanka Ports Authority statement said that 27 local and foreign companies among 63 that collected the request for investment proposals have submitted bids.

"The response shows investors are keen to invest in the new port," said Agil Hewageegana, SLPA chief engineer in charge of the port project in Hambantota known as Magampura Port.

He said some of the local firms that sent proposals are in joint ventures with foreign partners.

The new deep water harbour close to the main shipping route across the Indian Ocean, to function initially as an industrial port, was built by Chinese firms and largely funded by Chinese loans.

The SLPA received six investment proposals for cement terminals in Hambanthota when bids closed last week, two for vehicle assembly, two each for liquid petroleum gas and petro-chemical complexes, and three for warehousing.

Investors have also bid to set up a sugar refinery and a fertilizer plant.

The two local firms interested in vehicle assembly are Senok Trade Combine, agents for vehicle manufacturers like Audi, Subaru and Skoda, Transmec Engineering, which assembles the 'Micro Car' in Sri Lanka.

Pakistan's Jamshoro, based in Lahore, which had bid for part of the Shell Gas assets in that country has submitted a proposal for an LPG terminal.

Proposals petro-chemicals investments have come from a Singapore firm and Advance Surfactants Lanka, which makes industrial chemicals.

The SLPA said a total land area of 2,000 hectares belonging to the Magampura Port will be available for local and international entrepreneurs.

"Magampura Port is being developed as a multi-purpose, industrial and service port and aims to make the best of the expanding markets of the Indian sub-continent, with short transit times to India, Africa and the Gulf region," it said.

The government plans to start phase two of the project during the last quarter of this year with the contract agreement recently signed between China Harbour Engineering Company and SLPA.

The financial assistance would be extended by the the People's Republic of China on a concessionary basis, the statement said.

The second phase will expand and deepen the harbour, adding more berths and cranes to handle containers.

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.

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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.

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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.

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Sri Lanka Hambatota Magampura Port Draws Dubai & Singapore Service Providers

Sri Lanka Hambatota Port Draws Dubai & Singapore Service Providers

13th September 2010, www.lankabusinessonline.com

Service providers in the trade hubs of Dubai and Singapore have shown interest in a new port in southern Sri Lanka where a request for proposals from businesses has been issued, an official said.

The Sri Lanka Ports Authority said it has issued a request for proposals from international and local firms or consortia to design, build, finance, manage and operate business ventures at the new port of Hambantota.

The deadline for proposals is September 30, 2010.

"Now we are getting a lot of requests from service providers in Singapore and Dubai," SLPA chairman Priyath Wickrama said.

"From Hambantota they can easily feed both the east and west coast of the Indian sub-continent."

Cargo flows are increasing from India whose economy is growing fast. Transhipment cargo from the Indian sub-continent is sent either through Colombo, Singapore or Dubai.

Both Singapore and Dubai have used their geographical location on the main East-West shipping route to emerge as trade and cargo hubs.

The SLPA has said it is keen to use the position of the new port at Hambantota, only a few miles from the main East-West shipping route across the Indian Ocean, to make it a hub for the south Asian region.

The SLPA began filling the new port's basin in mid-August with the first ship expected to berth by year's end.

A team of local and foreign entrepreneurs who obtained the Request For Proposals were recently taken for a visit to the new port.

Under the phase two of the project investment and business ventures will be available for cement grinding, storage and bagging, fertilizer storage and bagging, LP gas distribution, ware housing, vehicle assembly, flour milling, and food processing and packaging.

Wickrama said the SLPA is also developing a marketing plan for the terminals in Colombo and Hambantota.

"We are going to market Sri Lanka, not only terminals," he said. "We have a product to market now. Earlier we had concepts to market but now we have a product."

He said port capacity is being built up to attract cargo volumes as existing capacity at both government and the private terminal in Colombo port is nearing their maximum.

"To attract volumes to Sri Lanka we must have capacity; otherwise we might not attract regional volumes on a large scale."

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

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

28th July 2010, www.colombopage.com

The Secretary of the Ministry of Ports and Aviation Ranjith Silva says that the construction work of the first phase of the Hambanthota harbour project is almost complete.

The Secretary said that the filling of water to the harbour will be initiated by the President Mahinda Rajapaksa on August 15.

He also said that the harbour operations will ceremoniously commence in November.

Hambanthota harbour was constructed inland close to a major shipping route six to ten nautical miles south of Hambantota. It is Sri Lanka's second largest harbour. The port will be operated by the Sri Lanka Ports Authority.

The first phase of the port project will provide bunkering, ship repair, ship building, and crew changes facilities.

Three ships can be harboured into the port in the first stage. The first ship is to anchor there in November.

The Harbour, being built at a cost of US $ 437 million for the first phase is a joint venture between China Harbor Engineering and Syno Hydro Corporation. The Government of China is to provide 85% of financial assistance.