The
Sri Lanka
Ports
Authority (SLPA),
with an
investment
of more than
USD1.2
billion from
public funds
and another
USD500
million from
private
investments
towards port
development
projects,
will help to
attract
increased
cargo
containerization.
SLPA
Chairman,
Dr. Priyath
Bandu
Wickrama,
said that
although
large scale
port
development
projects
were
underway in
India, he
pointed out
that India’s
cargo
containerization
is even less
than 20% and
Sri Lanka’s
containerization
is still in
its infancy.
“Thus,
potential
for
containerization
is vast in
our
country,”
the Chairman
said, adding
that the
SLPA has no
doubt about
attracting
more cargo
volumes on
the
completion
of its
projects.
Dr. Wickrama
made these
comments
while
addressing
the 28th
Annual
General
Meeting of
the Sri
Lanka
Freight
Forwarders
Association.
He said that
the SLPA’s
intention is
to develop
the entire
country as a
logistics
hub. “Our
vision is to
consolidate
Sri Lanka as
the premier
maritime
logistics
centre of
the Asian
region. This
can best be
achieved by
teaming
together
government,
industry and
the best
minds in
trade”.
Despite
challenges
and
competition
in the in
the Asian
region, the
Chairman
said that
country was
able to
achieve a 9%
container
volume
increase in
2008. The
Chairman of
the SLPA
added the
SLPA had
started most
of its
scheduled
activities
of the
3-year port
development
plan, which
was
presented at
his
appointment.
The Chairman
highlighted
that the
SLPA’s
development
strategy was
modeled on
the
‘Logistic
Performance
Index’ in
order to
reach an
optimal
throughput.
The Logistic
Performance
Index is
measured by
customs
procedures,
logistics
costs,
infrastructure
quality, the
ability to
track and
trace
shipments,
timeliness
in reaching
destinations,
and the
competence
of the
domestic
logistics
industry.
According
Dr. Wickrama
the
construction
of the
Breakwater
which would
be almost
6km in
length
commenced in
April 2008
at a total
cost of
US$345
million. He
said the
Request for
Proposals
for the
first
terminal,
namely the
South
Terminal is
scheduled to
be evaluated
within the
next few
months. The
new terminal
with a rated
capacity of
2.4 million
TEUs will
consist of a
quay that
would be
1,200 metres
in length
and capable
of handling
not only the
largest
container
vessel in
service but
even the
largest on
the drawing
boards.
Outlining
the
construction
of the Port
of
Hambantota,
Dr. Wickrama
said that
the first
vessel is
expected to
be berthed
by December
2010. “This
Port will,
in its first
stage,
consist of a
600 metre
multi-purpose
berth and a
tanker berth
capable of
berthing
100,000 dead
weight
tankers,” he
said, adding
the berth
will be
connected to
a tank farm
with a
capacity of
80,000 tons
with loading
arms. “The
business
plan
includes
leasing out
space for a
shipyard,
cement,
fertilizer
plants, a
warehousing
complex,
space for
the
operation of
a LP gas
terminal and
ample
parking
space for
vehicles to
tap the
transhipment
trade” he
added. The
Chairman
noted that
the SLPA is
considering
the
implementation
of “Free
Port
Concept”
initially at
Hambantota
and at all
other ports
in the
future.
In addition,
the regional
Port of
Oluvil is
also being
constructed
with the
construction
contract
already
awarded. The
Port of
Kankesanthurai
will also be
cleared of
old wrecks
and be in
operation in
the near
future
according to
Dr. Wickrama.
“We are not
only looking
at Port
development.
In fact a
cargo
village
consisting
of about 25
acres will
be set up by
the SLPA at
Bloemendhall,”
Dr. Wickrama
said noting
that its
functions
such as LCL,
MCC and
Entreport
will be
shifted to
this
location. He
stressed
that the
challenge is
to freight
forwarding
sector to
make Sri
Lanka a
logistics
hub. “The
infrastructure
will be in
place and
now you
should step
in and
exploit it,”
Dr. Wickrama
said
addressing
the
gathering.
The Chairman
added that
the state
has done its
avowed duty
by creating
a peaceful
and unified
country. Now
it is your
turn to
capitalize”.
(DM27062009)
