One of the leading infrastructure projects, the Colombo South Harbour in Colombo is on track despite lengthy delays, a Ports Authority source said.

The Government plans to build the Colombo South Port, as well as the new port in Hambantota, will go ahead despite delays. Among the top contenders to build and operate the new Colombo terminal are Port of Singapore Authority and Hutchison Port Holdings.

The Government promised to select the successful bidder as far back as last September but has still not done so despite numerous assurances. Meanwhile the ADB loan for the breakwater is being held up, as it is conditional on the award of the container terminal contract.

Construction work has already begun on the Hambantota port with Chinese funds. However, the local shipping community asks whether the new Colombo South Port, urgently required expanding the capacity to meet surging cargo volumes, was being given the priority it deserves, Ports Authority sources said.

Even though there may be doubts that the South Port is not moving fast enough, the Government wants to develop both ports, its sources said.

According to Ports Authority sources growth in world trade and the increasing size of container vessels meant for Colombo, with its ideal location near the main East-West shipping route, has the potential to emerge as a 'mega-hub' port.

With the ports of Hong Kong serving the Far East, Singapore the Near East and Dubai the Middle East, there was a "yawning gap" in South Asia, officials told a forum on Colombo's potential to become a hub for the region.

Sri Lanka is well placed and India does not have the geographical advantage Sri Lanka has, they said.

The Colombo South Port project has been planned for years and it was only last year that the Asian Development Bank approved funds for the breakwater and the Government called for bids for the infrastructure work as well as the first container terminal.
(DN 14022008)