Thursday, May 19, 2005

Hambantota Port project to start soon

THE Government is determined to go ahead with the Hambantota Port project despite tangible pressure from various international forces that oppose the setting up of a port at this strategic location, Ports and Aviation Minister Mangala Samaraweera declared yesterday.

"We are determined to complete this all-new port regardless of whoever opposes it," Minister Samaraweera told the media at a special briefing in Colombo.

The Minister observed that there were forces within and outside Sri Lanka who did not want to see a port at Hambantota, which will facilitate shipping lines using one of the busiest sea lanes in the world.

Construction is due to begin soon on the port, which many experts have contended would affect a number of regional ports.

"There are international forces who don't want that to happen. There are forces within our institutions who don't want to see a port at Hambantota," the Minister alleged.

The first phase of the project will be a bunkering system (four pipelines ) and a 10-tank farm, estimated to cost US$ 80 million. An agreement in this regard was signed in April with China's Huanqiu Contracting and Engineering Corporation and funding for the project will be on a Government to Government basis. The construction of the tank farm is scheduled for next month.

The Hambantota Port will eventually evolve from a ship bunkering port to a fully-fledged container port.

The Minister also disclosed that plans were underway to start the Colombo South Port Project soon. "The Colombo Port in its present form will reach saturation point in 2008. A new port is thus urgently required. We must begin construction of the new port in 2006," he said.

The proposed port will house four terminals (12 berths) and will handle the new generation of mega ships. The breakwater of the port will be developed at a cost of US$ 300 million. The Asian Development bank will contribute US$ 200 million, while the Sri Lanka Ports Authority (SLPA) will contribute the rest.

It has also been suggested that the Port be managed on a Private Public Partnership basis, with a private company managing the venture under the ownership of the SLPA.

The Minister also disclosed plans for the development of the Galle Port from 2006 at a cost of US$ 200 million. The port, placed farther out from the present location, is estimated to cost US$ 140 million.

Construction will be funded by the Japan Bank for International Cooperation (JBIC). The existing port at Galle will be converted to a yacht marina.

The Trincomalee Port will also be developed, as part of an overall plan to upgrade the city's tourist facilities. The Oluvil Port will be constructed with Danish help.

The Dutch Government has agreed to grant US$ 33 million for urgent repairs of the KKS harbour.

Several mega shipping lines have confirmed that they would start new services to Colombo, officials said.

Khalid

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