Sri Lanka Ports Authority to Invest Rs 1bn on Trinco Port City Development

02nd February 2012, www.dailynews.lk, By Indunil Hewage

Sri Lanka Ports Authority (SLPA) will invest approximately Rs one billion for infrastructure development of the Trincomalee Port City Development project in a bid to facilitate prospective investors who have expressed willingness to set up port related new ventures in the Trincomalee port .

SLPA will infuse money to develop roads and electricity facilities in the port area. It was recently disclosed that the government was ready to lease out land at the Trincomalee port to private investors and Cabinet approval has also been granted to this move. The Trincomalee Port City Development project which spreads across more than 500 acres of land will mainly consists of an Industrial Park and a Tourism Zone. However, the main focus of the authorities is to develop the industrial park at the initial stage.

Sri Lanka Ports Authority last month published the project proposal documents to private sector investors who are interested in setting up port related business ventures in the Trincomalee Port Industrial Park. At the moment, around 15 investors have purchased the required documents from SLPA. Interested investors will be able to collect the project proposal documents at the Port Committee Building situated in Fort until April 10, SLPA Planning and Development Chief Engineer Susantha Abesiriwardena told Daily News Business.

Each investor will be allocated five acre of land at the industrial park. However, investors are allowed to subdivide or amalgamate the land according to their preferences. The investors will have to comply with the requirements as requested in the project proposal document to get the SLPA approval to set up business ventures at the Trincomalee port vicinity, a SLPA senior official told the Daily News Business.

While the Oluvil duel purpose harbour being constructed, the Galle harbour too is undergoing transformation and is to be upgraded to a tourism harbour. Many tourism related investment opportunities would be open to investors.

Meanwhile the Hambantota Port project too has gained momentum with over one billion investments being found. Heyleys was the first company to invest in the Magampura Port by laying the foundation stone for a fertilizer processing plant.

In addition aviation sector investors too would have an opportunity to invest at the new Mattala Airport which is scheduled to be opened end of the year.

Related Info :

• Sri Lanka Invites Investments on Trinco Port. Large Tracts of Land in the Eastern Port to be Made Available by March

Sri Lanka's Port City Gets $700mn Investment. Land Reclaimed by Construction of Colombo's New Harbour to be Utilized

24th June 2011, www.lankabusinessonline.com

The Sri Lanka Ports Authority (SLPA) has secured a 700 million US dollar investment to build a 'port city' on land reclaimed on the capital's seafront with the construction of a new harbour.

SLPA chairman Priyath Wickrama said material dredged to build the new port next to the existing Colombo harbour will be used for the reclamation of about 200 hectares.

"We have got an investor who will invest 700 million US dollars for the landfill," he told a public forum, without naming the investor.

The land will be given on a 99-year lease and be used to build a 'port city' with port-related businesses along with other activities.

"The project will take 39 months to complete," Wickrama said. "It will have a mini-golf course, a Formula One race track, a small yacht marina and areas for water sports."

The land reclamation will be on the southern side of the new Colombo South Harbour, a deep-water port being built next to the existing port.

It is meant to cater to the latest generation, bigger container vessels which are too big to call at the existing Colombo port.

The dredging and breakwater of the new port was funded with a loan from the Asian Development Bank.

A consortium led by China Merchants Holdings which has partnered with the local Aitken Spence conglomerate is to build the new port's first container terminal at a cost of 500 million US dollars.

Related Info :

• Galle Face Expansion Project to Reclaim 400 Acres from Sea. A Perch to be Sold for Rs 10mn

• Experts Endorse Reclaiming of 500Acres from sea off Galle Face, Colombo, Sri Lanka for a Commercial City

• Colombo South Container Terminal. SLPA Signs PPP BOT Project with China Merchant International Holding, Aitken Spence Consortium

Sri Lanka Port Profit Go Up in 2010

21st April 2011, www.lankabusinessonline.com

Sri Lanka Ports Authority (SLPA), which runs the island's ports, increased revenue and operating profit in 2010 on the back of the global economic recovery which generated double-digit growth in cargo flows.

The SLPA's operating profit increased by 126 percent to 4.4 billion rupees in 2010 from the previous year while revenue rose by 21.2 percent to 28.3 billion rupees, according to the central bank.

The SLPA's operating expenditure increased by 11.7 percent to 23.9 billion rupees over the same period.

"The capital expenditure incurred by the SLPA during the year increased to 6.1 billion rupees compared to 3.8 billion rupees in 2009," the bank's annual report said.

"With the gradual recovery in international trade, the performance of port operations increased significantly in 2010."

Container cargo flows at Colombo port rose 19.4 percent to hit a new record of 4.1 million containers last year "supported by steadfast growth in both import-export and transhipment cargo," the bank said.

The number of containers handled in 2010 was also 10.8 percent higher than the total of 3.7 million TEUs (twenty-foot equivalent container units) handled in 2008, the highest-ever performance before the global recession.

Transhipment cargo handling increased by 18 percent in 2010 from the previous year, while the total cargo handled at the port of Colombo increased by 26.7 percent.

Related Info :

• Colombo Port Containers Handling Grows by 11.78pct Year-on-Year. SLPA Handles a Record 205,539 TEU in January 2011

• Sri Lanka Colombo Port to Double Bunker Storage to Supply Increasing Number of Ship Fuel Suppliers

• SLPA to Sell Land Reclaimed from Sea off Colombo Galle Face Green. Investors to be Identified for $350mn Cost of Reclaiming 340 Acres

Galle Face Expansion Project to Reclaim 400 Acres from Sea. A Perch to be Sold for Rs 10mn

18th December 2010, www.dailynews.lk, By Indunil Hewage

The Sri Lanka Ports Authority has undertaken a massive project to develop the Galle Face area and its immediate surroundings with a total investment of around US $ 100 million. The Ports Authority plans to reclaim 400 acres from Galle Face from the sea with the aim of expanding the land extent of Galle Face area.

The Galle Face expansion project will commence in another three months. The Ports Authority hopes to conclude the Galle Face expansion project within two years.

Sri Lanka Ports Authority Director Prasanna Kalutarage said they hope to sell a perch in the above area for Rs 10 million.

The land will be used to build commercial buildings, luxury hotels and other high rise buildings.

Many local and foreign investors have already shown their willingness to invest in the newly acclaimed area.

In addition to that plans are on to handover the administration in the food court in the Galle Face green area to a leading international food chain in the next two months.

“With the conclusion of the Galle Face expansion project, we are hoping to commence a speed boat service using the Galle Face sea area,” Kalutarage said.

Related Info:
Sri Lanka's Galle Face Area Beachfront Re-Development to Start Immediately

Experts Endorse Reclaiming of 500Acres from sea off Galle Face, Colombo, Sri Lanka for a Commercial City

Colombo Port Jaya Container Terminal Handles Two Million TEUs in 11 Months. Four Million TEU Mark to Reach before Year End

07th December 2010, www.dailynews.lk

Sri Lanka Ports Authority (SLPA) run Jaya Container Terminal [JCT] has recorded a throughput volume of two million; twenty foot equivalent units (TEUs) in a little over eleven months this year. Total TEU handling of two million recorded an increase of 26.5 percent compared to last year.

The SLPA recorded an increase of 7.6 percent compared to the total figure of 1.9 million TEUs, the highest-ever performance rate recorded by SLPA in 2008 before recession hit global trade, Sri Lanka Ports Authority Managing Director Capt Nihal Keppetipola said.

He said this performance was achieved for the first time in its history as a State-run terminal. “SLPA has been performing its above average efficiencies through the past years and has displayed an impressive growth trend. The Colombo Port would also reach the four million TEU mark before the end of the year, which will also be a record.

“Phase One of the Colombo South Harbour which gives an additional 2.4 million TEU capacity will be ready by early 2013 ensuring Sri Lanka the South Asian Container Hub status,” Keppetipola said.

The breakup of this two million TEUs handled by SLPA, includes a 37 percent increase of local import and export TEUs and a 21 percent boost of transshipment TEUs.

The SLPA is in a better position as a state-run terminal compared to the privately-owned South Asia Gateway Terminals (SAGT), which possesses a 16 percent volume increase in the period under review, he said.

The SLPA has attracted about eleven new shipping services to the JCT in the recent past and the mega liners such as APL and MSC are now patronizing SLPA.

The highest-ever monthly volume of 201,217 TEUs was achieved in August with an increase of 22 percent compared to the corresponding year. Meanwhile, the Port of Colombo (including SAGT), handled 360,973 TEUs in August marking a 10 percent improvement.

Images: Two millionth container for 2010 being discharged from vessel APL Sharjah at Jaya Container Terminal, Colombo Port; and Highways Ministry Secretary Sujatha Kure waving the flag, signaling to discharge the two millionth container with the SLPA Chairman Dr Priyath B Wickrama, SLPA Managing Director Capt Nihal Keppetipola and other SLPA officials.

Related Info:
Volumes Up at Colombo Port Private Terminal, SAGT Run by John Keells

Sri Lanka New Colombo South Port Terminal Eyes Indian Cargo for 2.4mn TEU Capacity

Sri Lanka's $550Mn Tax-Free Port Zone at Hambantota Seeks Tenants

08th March 2010, www.bloomberg.com, By Anusha Ondaatjie

Sri Lanka plans to invite overseas and local companies this month to set up operations in a new $550 million tax-free port zone as the end of the island’s civil war boosts trade and investment.

Companies from Australia, India, China, Russia and Dubai have expressed interest in opening shipbuilding, ship-repair and warehousing facilities at the port in Hambantota, southern Sri Lanka, said Sri Lanka Ports Authority Chairman Priyath Wickrama. The zone, partially funded by a $370 million Chinese loan, should be completed by November, he said.

Sri Lanka will also push ahead with a fourth container terminal at the island’s main port in Colombo to take advantage of the island’s proximity to India and to major shipping routes between Asia and Europe. President Mahinda Rajapaksa’s government is set to spend $1 billion on ports, roads and power plants this year after ending the Tamil Tiger rebels’ 26-year quest for a separate homeland in May.

“With the war over the potential for Sri Lanka is booming,” Wickrama said. And, “we have a gift of location.”

Sri Lanka is situated on the route between the Malacca Straits and the Suez Canal, which links Asia and Europe. The canal was used by an average of 47 ships a day last year. The island is also 31 kilometers (19 miles) southeast of India, the world’s second-fastest-growing major economy.

Second Phase

Sri Lanka is already planning a $600 million second phase for the Hambantota port, which will include a container terminal, Wickrama said. The government is seeking another Chinese loan, he said. Other industries that may use the 1,700 hectare (4,200 acre) first phase include cement, fertilizers and food- processing, Wickrama said.

Ports Authority will also hold discussions this month with China Merchants Holdings (International) Co. and Aitken Spence & Co., which in 2009 submitted the sole bid for the new $450 million Colombo terminal, Wickrama said.

Construction of the 2.5 million-containers-a-year facility, which will expand Colombo’s cargo capacity by 50 percent, is slated to begin in June and finish by the first quarter of 2012, Wickrama said.

The three existing terminals in Colombo, including two run by Ports Authority and one managed by John Keells Holdings Plc, the island’s biggest diversified company, can handle 4.5 million 20-foot containers a year.

The port will likely handle 4 million containers this year, up from 3.7 million in 2009, Wickrama said.

The island will call for bids for a fifth terminal once Colombo reaches 5 million containers a year, he said.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

Hambantota Port (Harbour) on Google Maps

Colombo Port Bunkering Facilities Expanded

04th January 2010, www.dailymirror.lk

Sri Lanka Ports Authority (SLPA) said yesterday a number of steps have been taken to expand the operations of oil tankers at the Colombo Port.

The New North Pier developed as a multipurpose berth to handle oil tankers launched its first handling of such operations on Wednesday with the vessel MT Heaven.

SLPA said these new measures were according to the instructions by President Mahinda Rajapaksa and under supervision of Minister of Ports and Aviation Chamal Rajapaksa, Minister of Port Development Dilan Perera, Chairman of SLPA Dr. Priyath Bandu Wickrama and Jaya Container Terminals, which acts as a 100% share holder of SLPA.

A new oil pump pipe line system has been constructed with all affiliated facilities from the New North Pier up to the South Jetty for oil transportation. With this latest project all extra berthing facilities will be provided for the oil tankers reaching Colombo for bunkering purposes.

The new process will further elevate the oil transportation, in a more efficient and productive manner, from Colombo Port to the oil storage tanks of the Colombo oil Banks managed by the Jaya Container Terminals.

It is a specialty that all constructions of the project are planned and carried out by the engineers and the staff of SLPA. It is expected to boost the flow of foreign exchange to Sri Lanka through a competitive bunkering service at Colombo Port following the completion of the whole project.

Currently, steps have also been taken to construct two new oil storage tanks at the Colombo oil bank premises to boost the capacity in order to improve the bunkering facilities at Colombo Port. The projects will further assist the developments at the Colombo Port as a maritime and logistics hub in the entire region.