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CMB Post (http://www.colombopage.com/archive_12/May24_1337801180CH.php)

Is it active already? Its still U/C isn't it? :nuts:

Is it active already? Its still U/C isn't it? :nuts:

It's slowly receiving ships. But there are no gantry cranes and other infrastructure as of yet.

Sadly the fools in Government rushed to open it with a ceremony to boot just to give the finger to the opposition, without waiting till it was completed/had adequate infrastuctre. The fools in opposition also do not want to see the immense potential the port can have because of their short sighted dumb mentalities.

It's slowly receiving ships. But there are no gantry cranes and other infrastructure as of yet.

Sadly the fools in Government rushed to open it with a ceremony to boot just to give the finger to the opposition, without waiting till it was completed/had adequate infrastuctre. The fools in opposition also do not want to see the immense potential the port can have because of their short sighted dumb mentalities.

Well said!

It's slowly receiving ships. But there are no gantry cranes and other infrastructure as of yet.

Sadly the fools in Government rushed to open it with a ceremony to boot just to give the finger to the opposition, without waiting till it was completed/had adequate infrastuctre. The fools in opposition also do not want to see the immense potential the port can have because of their short sighted dumb mentalities.

:ohno:

Apparently though, phase 1 is almost completed, so thats when it was supposed to start receiving ships. And apparently the bunkering facilities are ready now, so heres hoping it goes well. :cheers:

It's slowly receiving ships. But there are no gantry cranes and other infrastructure as of yet.

Sadly the fools in Government rushed to open it with a ceremony to boot just to give the finger to the opposition, without waiting till it was completed/had adequate infrastuctre. The fools in opposition also do not want to see the immense potential the port can have because of their short sighted dumb mentalities.

Its over 4 years since the project started. Has anyone any idea the infrastructure is still not in place. Its not like you have to wait for the port to finish to order gantry cranes.

Its over 4 years since the project started. Has anyone any idea the infrastructure is still not in place. Its not like you have to wait for the port to finish to order gantry cranes.
They opened it too early, its only about two thirds completed.

An agreement on the establishment of a sugar refinery plant by Shree Renuka Sugars Ltd., India, via its subsidiary Lanka Sugar Refinery Company (Private) Limited, was signed yesterday with Sri Lanka Ports Authority.
The signatories were Dr. Priyath B. Wickrama – Chairman of SLPA, Executive Director of SLPA Dr. Sanjaya Sedara Senarath and Rajesh Rawat, Director – Lanka Sugar Refinery (Private) Limited, William Dharmadas – Lanka Sugar Refinery (Private) Limited in the presence of Deputy Minister of Ports and Highways Rohitha Abeygunawardena.
This agreement has been signed for a term of 25 years and the expected total investment of this business venture is US$ 220 million. The initial capacity of this plant will be 2,000 tons per day, which will be expanded up to 3,000 tons per day subsequently.
Raw sugar is expected to be imported by the business venture for refinement at this proposed plant. The company is planned utilise the local human resources to the maximum level and expects to engage 1,500-2,000 workmen during the construction period. When in operation, nearly 300-350 people are expected to be employed by them at various technical and commercial levels.
Apart from the above, nearly 1,000 persons are expected to get indirect employment opportunities through this. The construction of this plant is expected to be completed within 24 months.
In parallel to the construction of the Magam Ruhunupura Mahinda Rajapaksa Port (MRMR Port) in Hambantota, the Sri Lanka Ports Authority (SLPA) has received investment proposals from prospective local and foreign investors to establish businesses within the port premises.
Out of the 27 proposals received, the Cabinet of Ministers has approved seven investment proposals, subsequent to the recommendations by Cabinet appointed negotiating committee with the assistance of the technical evaluation committee.
These proposals include schemes for setting up a sugar refinery plant, a cement grinding/ bagging plant, a fertiliser plant, a petro-chemical plant and warehouses.
Following the success of Magam Ruhunupura Mahinda Rajapaksa Port, several more foreign investments will also be granted approval to initiate further industrial activity at the port premises in the near future, SLPA said.

RPT-Sri Lanka takes next step to opening strategic China-built port

* China's growing influence in Sri Lanka worries India

* Proper bunkering operations at the port start in June

* Hambantota is set to be Sri Lanka's biggest port

By Shihar Aneez

COLOMBO, March 4 (Reuters) - Sri Lanka will start storing bunker fuel at the $1.5 billion Hambantota port in June, a senior official said, after years of delays to the Chinese-built installation that sits on strategic shipping lanes, and a key step to making it commercially viable.

The state-run Sri Lanka Ports Authority (SLPA) originally had plans to open the facility for ship fuel in May 2011, six months after President Mahinda Rajapaksa launched the port in his home town on his 65th birthday.

"We are about to get the test samples in March. Then we will do the trials. After that we will start proper bunkering operation in June," Priyath Wickrama, chairman of the SLPA told Reuters in an interview.

The $130 million storage project contains eight tanks of bunker oil for ships and six tanks of aviation fuel and LPG.

The port is envisioned as a refuelling and service point for cargo ships which pass a few kilometres away off the southern tip of the Indian Ocean island nation, on one of the world's busiest East-West shipping lanes.

The growing influence of China in Sri Lanka has worried India, a neighbour that feels hemmed in by a string of similar port developments stretching from Myanmar to Pakistan and that it fears give the Chinese navy a strategic boost in the region. However, the ports are designed for commercial operations and are mostly not yet fully operational.

China has lent $400 million for the first phase of the new port in Hambantota and another $810 million has been given for the second phase with China Communications Construction Company as the contractor.

Wickrama said the expected handling volume in 2013 is about 45,000 metric tonnes (mt) of ship fuel, rising to 125,000 mt in 2015. China Exim Bank has loaned $77 million for the terminal, which the ports authority will operate.

RAJAPAKSA CITY

The port is part of Rajapaksa's push to turn Hambantota, a fishing village ravaged by the 2004 tsunami, into one of Asia's leading commercial cities. Hambantota is set to be Sri Lanka's biggest port once the second phase is completed.

Rajapaksa's ambitious plans for his home town following the end of three decades of civil war in 2009 have already helped build the country's second international airport, a 35,000-seater cricket stadium that hosted 2011 World Cup games, and a massive convention centre, mostly financed and built by China.

The port, airport and the stadium are all named after Rajapaksa, who is still hailed by many for winning the war against Tamil Tiger separatists, despite international concerns about rights abuses in the intense final months of hostilities.

The Mahinda Rajapaksa International Airport is due to open on March 18, after being built with a $209 million Chinese loan, with China Harbour Engineering Company building the first phase.

An entire new commercial city is planned. A smooth four lane highway has slashed travel time to the capital Colombo, while South Korea is helping build the international convention centre. Shangri-La Asia Ltd is building a resort due to open in 2014.

But the viability of the whole plan will depend largely on the success of the port, which has had a rocky start and is increasingly criticised for its low returns on investment.

Thousands of ships were meant to use Hambantota port soon after its November 2010 launch as an alternative to Singapore or Dubai, and unload goods to be moved across Asia and Australia.

But, after the lavish opening ceremony, Sri Lanka had to seek an additional loan from China to remove an undersea rock blocking the mouth of the port, a hitch played down by Wickrama.

"Unfortunately due to certain clearance issues, there was a slight delay," he said.

For now, the main traffic comes from local tourists gawking at the long breakwaters, along with the occasional ship laden with cars. The government ordered all car imports to come through Hambantota in July 2012, to unclog the capital Colombo.

Rajapaksa's political rivals say the move was also aimed to give some life to the facility, where the gilt is peeling from the president's name emblazoned at the port's entrance.

Wickrama said Sri Lanka has already secured $700 million in investments, including $220 million from India's Shree Renuka Sugars Ltd to handle some 500,000 tonnes this year.

The Ports Authority expects another $1 billion in investment through requests for proposals by May, he said. (Additional reporting by Ranga Sirilal and Frank Jack Daniel; editing by James Jukwey)

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Sri Lanka to set up plant for production of polyethylene terephthalate in Hambantota
Sat, Mar 2, 2013, 01:46 am SL Time, ColomboPage News Desk, Sri Lanka.


Mar 02, Colombo: The Sri Lankan government has received approval to set up a plant for production of polyethylene terephthalate (PET) in the fast-developing southern commercial hub of Hambantota.

The construction works of the first phase of Hambantota Port Development Project have been completed as scheduled, the government says.

A Business Plan prepared by the Sri Lanka Ports Authority has identified the business ventures that could be undertaken under Phase I of the Project and setting up of a plant to manufacture PET is one of the business ventures.

Cabinet Appointed Negotiating Committee (CANC) has recently recommended awarding the contract for the operation of PET manufacturing plant for a period of 25 years and to lease out 5 hectares of land to a consortium of investors promoted by the Singapore-based Peak Energy Ltd at an envisaged investment of US$ 150 million.

The cabinet has granted approval to a proposal on the plant put forward by the President in his capacity as the Minister of Ports and Highways.

When completed by late this year, the plant is expected to handle business worth of US$ 1 billion.

The Government is developing Hambantota as a commercial hub with a harbor, an international airport and industrial parks to attract investors.

RPT-Sri Lanka takes next step to opening strategic China-built port

* China's growing influence in Sri Lanka worries India

* Proper bunkering operations at the port start in June

* Hambantota is set to be Sri Lanka's biggest port

By Shihar Aneez

COLOMBO, March 4 (Reuters) - Sri Lanka will start storing bunker fuel at the $1.5 billion Hambantota port in June, a senior official said, after years of delays to the Chinese-built installation that sits on strategic shipping lanes, and a key step to making it commercially viable.

The state-run Sri Lanka Ports Authority (SLPA) originally had plans to open the facility for ship fuel in May 2011, six months after President Mahinda Rajapaksa launched the port in his home town on his 65th birthday.

"We are about to get the test samples in March. Then we will do the trials. After that we will start proper bunkering operation in June," Priyath Wickrama, chairman of the SLPA told Reuters in an interview.

The $130 million storage project contains eight tanks of bunker oil for ships and six tanks of aviation fuel and LPG.

The port is envisioned as a refuelling and service point for cargo ships which pass a few kilometres away off the southern tip of the Indian Ocean island nation, on one of the world's busiest East-West shipping lanes.

The growing influence of China in Sri Lanka has worried India, a neighbour that feels hemmed in by a string of similar port developments stretching from Myanmar to Pakistan and that it fears give the Chinese navy a strategic boost in the region. However, the ports are designed for commercial operations and are mostly not yet fully operational.

China has lent $400 million for the first phase of the new port in Hambantota and another $810 million has been given for the second phase with China Communications Construction Company as the contractor.

Wickrama said the expected handling volume in 2013 is about 45,000 metric tonnes (mt) of ship fuel, rising to 125,000 mt in 2015. China Exim Bank has loaned $77 million for the terminal, which the ports authority will operate.

RAJAPAKSA CITY

The port is part of Rajapaksa's push to turn Hambantota, a fishing village ravaged by the 2004 tsunami, into one of Asia's leading commercial cities. Hambantota is set to be Sri Lanka's biggest port once the second phase is completed.

Rajapaksa's ambitious plans for his home town following the end of three decades of civil war in 2009 have already helped build the country's second international airport, a 35,000-seater cricket stadium that hosted 2011 World Cup games, and a massive convention centre, mostly financed and built by China.

The port, airport and the stadium are all named after Rajapaksa, who is still hailed by many for winning the war against Tamil Tiger separatists, despite international concerns about rights abuses in the intense final months of hostilities.

The Mahinda Rajapaksa International Airport is due to open on March 18, after being built with a $209 million Chinese loan, with China Harbour Engineering Company building the first phase.

An entire new commercial city is planned. A smooth four lane highway has slashed travel time to the capital Colombo, while South Korea is helping build the international convention centre. Shangri-La Asia Ltd is building a resort due to open in 2014.

But the viability of the whole plan will depend largely on the success of the port, which has had a rocky start and is increasingly criticised for its low returns on investment.

Thousands of ships were meant to use Hambantota port soon after its November 2010 launch as an alternative to Singapore or Dubai, and unload goods to be moved across Asia and Australia.

But, after the lavish opening ceremony, Sri Lanka had to seek an additional loan from China to remove an undersea rock blocking the mouth of the port, a hitch played down by Wickrama.

"Unfortunately due to certain clearance issues, there was a slight delay," he said.

For now, the main traffic comes from local tourists gawking at the long breakwaters, along with the occasional ship laden with cars. The government ordered all car imports to come through Hambantota in July 2012, to unclog the capital Colombo.

Rajapaksa's political rivals say the move was also aimed to give some life to the facility, where the gilt is peeling from the president's name emblazoned at the port's entrance.

Wickrama said Sri Lanka has already secured $700 million in investments, including $220 million from India's Shree Renuka Sugars Ltd to handle some 500,000 tonnes this year.

The Ports Authority expects another $1 billion in investment through requests for proposals by May, he said. (Additional reporting by Ranga Sirilal and Frank Jack Daniel; editing by James Jukwey)

Bunkering should bring much needed ship pass by the port, and also they should quickly make the port to a multi use facility with crains that can support transhipment not just bunkering :)

Bunkering should bring much needed ship pass by the port, and also they should quickly make the port to a multi use facility with crains that can support transhipment not just bunkering :)

Isn't it already so; all car imports come through Hambantota and are sent off to other parts of the nation.

Isn't it already so; all car imports come through Hambantota and are sent off to other parts of the nation.
'Only cars not other services are possible due to non availability of cranes

It's not cars bound to SL that are sent to Hambantota.

It's the ones means to be transhipped elsewhere i believe.

The stupidity of opening this thing earlier is why the port is being called a "failure". Proper infrastructure to handle ships was not in place. But then this Government is short sighted in many of it's approaches undermining some good ideas.

Another failure is that businesses and individuals that want to set up industries, manufacturing etc in the Hambantota free trade zone to take advantage of the port have been blocked by UPFA thugs wanting endless bribes.

It's not cars bound to SL that are sent to Hambantota.

It's the ones means to be transhipped elsewhere i believe.

The stupidity of opening this thing earlier is why the port is being called a "failure". Proper infrastructure to handle ships was not in place. But then this Government is short sighted in many of it's approaches undermining some good ideas.

Another failure is that businesses and individuals that want to set up industries, manufacturing etc in the Hambantota free trade zone to take advantage of the port have been blocked by UPFA thugs wanting endless bribes.

I agree with you on the first bit.

As for the second;
There are five plants of different industries that have been granted permission to set up in Hambantota, about 30 are in varying stages of negotiations, and a large amount are in the proposal stage.

I agree with you on the first bit.

As for the second;
There are five plants of different industries that have been granted permission to set up in Hambantota, about 30 are in varying stages of negotiations, and a large amount are in the proposal stage.


Yeah still in negotiation, 2.5 years after the port was opened. A lot of the negotiation and requests came in 2008 and 09 to set things up yet still nothing off the ground.

I have eluded as to why a lot are still "in negotiations".

UPFA thugs in the South appointed by Mahinda (his relatives and off shoots) to key positions (some voted in like the LGs, PCs, some not) are destroying his prized project through their greed and animal like attitudes, best of all they are being protected by Mahinda himself and allowed a "free hand". Mind bogglingly amazing as to how MR is destroying his own grand schemes.

Yeah still in negotiation, 2.5 years after the port was opened. A lot of the negotiation and requests came in 2008 and 09 to set things up yet still nothing off the ground.

I have eluded as to why a lot are still "in negotiations".

UPFA thugs in the South appointed by Mahinda (his relatives and off shoots) to key positions (some voted in like the LGs, PCs, some not) are destroying his prized project through their greed and animal like attitudes, best of all they are being protected by Mahinda himself and allowed a "free hand". Mind bogglingly amazing as to how MR is destroying his own grand schemes.

I did not know that since SLPA is handling the port related work, and I think Heyleys, Peak energy & Sri Renuka sugar is ready to start construction and infact Heyleys has already started.

The Magampura Mahinda Rajapaksa Port is expected to generate turnover of up to Rs. 3.5 billion by the end of this year, according to Chairman Sri Lanka Ports Authority, Dr. Priyath Bandu Wickrama.

“With new investments coming to the port over this year, we expect that revenue levels will increase significantly. The new port is equipped with the latest technology to ensure higher efficiency and we expect that this will reduce operating costs and improve profitability,” Dr. Wickrama said.

The port generated approximately Rs. 132 million in turnover over 2012, falling well short of the SLPA’s stated target of between Rs. 500-600 million.

Failure to reach targeted revenues in 2012 was attributed to delays on construction by businesses connected with the port as a result of escalating costs of construction in the last year.

“We have now reduced the impact of many issues that we had faced earlier, particularly in the Colombo Port where a lot of issues with cargo clearance have now been dealt with. We are continuously improving productivity and all of our port developments are now on schedule,” Dr. Wickrama noted.

The Hambantota port is set to start storing bunkering fuel by June of this year, a key component of the functionality of the port project which was initiated with a view to attracting cargo ships traversing one of the busiest East-West shipping lanes for refueling and service.

The port, which is currently the single largest on land port development in the 21st Century, is estimated to cost a total of US$ 1.5 billion.

The first phase of construction was completed at a cost of US$ 361 million, of which the SLPA took on 15% of expenditure whilst the remaining 65% of funding requirements were met by the China Export–Import Bank.

Funding for the second phase of the project’s development will also come from China through a reported US$ 810 million loan. Chinese contractor, China Communications Construction Company will manage the second phase of development.

The port has already secured US$ 700 million in investments according to Wickrama, including US$ 220 million from major Indian sugar producer, Shree Renuka Sugars Ltd. A further US$ 1 billion in investments is currently being anticipated going forward with the SLPA reportedly calling for requests for proposals by May. The SLPA posted a profit after tax of Rs. 4.09 billion over 2012, against just Rs. 582.6 million in the preceding year.

In terms of efficiency ratios, the SLPA improved its Net Profit per Twenty-foot Equivalent Unit (TEU) to Rs. 2,509 as compared with Rs. 1,468 in the preceding year and a loss of Rs. 576 per TEU in 2010.

DM (http://www.dailymirror.lk/business/economy/26258-htota-port-turnover-target-feasible-slpa-.html)

The Magampura Mahinda Rajapaksa Port is expected to generate turnover of up to Rs. 3.5 billion by the end of this year, according to Chairman Sri Lanka Ports Authority, Dr. Priyath Bandu Wickrama.

“With new investments coming to the port over this year, we expect that revenue levels will increase significantly. The new port is equipped with the latest technology to ensure higher efficiency and we expect that this will reduce operating costs and improve profitability,” Dr. Wickrama said.

The port generated approximately Rs. 132 million in turnover over 2012, falling well short of the SLPA’s stated target of between Rs. 500-600 million.

Failure to reach targeted revenues in 2012 was attributed to delays on construction by businesses connected with the port as a result of escalating costs of construction in the last year.

“We have now reduced the impact of many issues that we had faced earlier, particularly in the Colombo Port where a lot of issues with cargo clearance have now been dealt with. We are continuously improving productivity and all of our port developments are now on schedule,” Dr. Wickrama noted.

The Hambantota port is set to start storing bunkering fuel by June of this year, a key component of the functionality of the port project which was initiated with a view to attracting cargo ships traversing one of the busiest East-West shipping lanes for refueling and service.

The port, which is currently the single largest on land port development in the 21st Century, is estimated to cost a total of US$ 1.5 billion.

The first phase of construction was completed at a cost of US$ 361 million, of which the SLPA took on 15% of expenditure whilst the remaining 65% of funding requirements were met by the China Export–Import Bank.

Funding for the second phase of the project’s development will also come from China through a reported US$ 810 million loan. Chinese contractor, China Communications Construction Company will manage the second phase of development.

The port has already secured US$ 700 million in investments according to Wickrama, including US$ 220 million from major Indian sugar producer, Shree Renuka Sugars Ltd. A further US$ 1 billion in investments is currently being anticipated going forward with the SLPA reportedly calling for requests for proposals by May. The SLPA posted a profit after tax of Rs. 4.09 billion over 2012, against just Rs. 582.6 million in the preceding year.

In terms of efficiency ratios, the SLPA improved its Net Profit per Twenty-foot Equivalent Unit (TEU) to Rs. 2,509 as compared with Rs. 1,468 in the preceding year and a loss of Rs. 576 per TEU in 2010.

DM (http://www.dailymirror.lk/business/economy/26258-htota-port-turnover-target-feasible-slpa-.html)


The Sri Lanka Ports Authority (SLPA) yesterday announced impressive financial results despite a slight drop in overall volume.
Minister of Port and Highways (Projects) Roh-itha Abegunawardhane revealed that pre-tax profit in 2012 was Rs. 5.2 billion, as against Rs. 782 million in the previous year whilst profit after tax was Rs. 4.08 billion, up from Rs. 582.5 million.
http://www.ft.lk/wp-content/uploads/2013/03/BUP_DFT_Page-1.jpg
Operating profit was Rs. 12.2 billion, up 118% from 2011. The improved bottom line was despite Rs. 5.3 billion exchange loss last year. SLPA’s total revenue was Rs. 38.8 billion, as against Rs. 31.2 billion in 2011.
The improved financial health was despite total containers handled dropping by 2% to 4.18 million TEUs whilst transhipment volume was down by an equal percentage to 3.06 million TEUS.

Expressing views at the occasion Minister of Port and Highways (Projects) Rohitha Abegunawardhane said: “Despite false drawbacks as depicted by certain parties, SLPA in its mission has reached several key areas of success financially as well as in its development.”

“The institution is in the right direction to feed the national economy towards bringing a greater socioeconomic prosperity to Sri Lanka according to the clear vision presented in ‘Mahinda Chinthana’ of President Mahinda Rajapaksa," the Minister added.
He also said the SLPA has taken steps to rapidly develop its ports around the island with several major new projects attached to them.
The Minister listed Magam Ruhunupura Mahinda Rajapaksa Port in Hambantota and the Colombo Port Expansion Project as the most important infrastructure projects in the recent history of the country.

Besides, Galle Port is being developed as a tourism component and Trincomalee as an industrial venture. Meanwhile, rapid developments are also taking place at Oluvil and KKS ports, aiming for a major socioeconomic boom in the regions, the Minister added.

He said that the efficient manoeuvring of loan facilities obtained by the present Government for these developments had resulted in converting them into assets that drive the development process of Sri Lanka.

Commenting on the latest financial status and improvements at the SLPA, Chairman Dr. Priyath B. Wickrama stated that the growing efficiency levels and new methodologies attached to the latest technological implementations had reduced wastage and raised productivity levels at the institution.
“According to the financial report of SLPA for 2012, our revenue has increased from Rs. 23 billion in 2009 to Rs. 38 billion in 2012. In addition, the operating profit of SLPA, which was about Rs. 1.9 billion in 2009, has increased up to Rs. 12.2 billion during the last four years. This shows a clear improvement of our operating profit. Accordingly, we have achieved a recording profit that amounts to Rs. 4,086 million,” he said.

Speaking further, the SLPA Chairman said that the performance of container handling at SLPA had also considerably improved. “Our average crane productivity has increased from 18 moves per hour to 23 moves per hour. Our aim is to reach 25 moves per hour during this year and to reach 30 moves per hour as an average in 2014,” he added.

He added that the ongoing mega development projects would see their timely accomplishments in the near future. The 6.4km new breakwater constructed at the Colombo Port Expansion Project (CPEP) has already been completed, enabling possibilities for a smoother opening of the new port in April this year. A part of the two terminals being built at present under CPEP will also be opened by the end this year.

Additional Secretary of the Ministry of Ports and Highways (Ports) Anuradha Wijekoon and Private Secretary to the Minister of Port and Highways (Projects) Sarath Kumara were also present at this briefing.

FT (http://www.ft.lk/2013/03/06/slpa-cruises-to-rs-4-b-post-tax-profit-in-2012/)

As long as SLPA is profitable as they have shown future should not look bleak:cheers:

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Mar 12, 2013 (LBO) - Sri Lanka Ports Authority said it had signed a business venture agreement with Hambana Petrochemicals Ltd which will set up a 137.39 million US dollar bottle grade poly-ethylene terepthalate (PET) resin plant.

The firm promoted by Peak Energy, a Singapore based firm will lease 10 acres of land for 25-years from the newly built Hambantota port in Sri Lanka's southern coast.
The factory is to be built over 24 months and will have the capacity to produce 540,000 metric tonnes of PET resin or 1,500 tonnes a day.

It will import 453,000 metric tonnes of purified terephthalic acid, 183,600 tonnes of mono-ethylene glycol and 10,800 tonnes of purified isophthalic acid each year.

It will export 45,000 twenty foot equivalent solid produce and 180,000 metric tonnes of liquid cargo a year.

Sri Lanka Ports Authority quoted Abhijit Sen, chief executive of Hamabana Petrochemical as saying it will be the largest single location PET plant in the world, and they also hoped to start a 450 million US dollar purified terephthalic acid (PTA) plant later.

SLPA chief Priyath Bandu Wickrema, Hamabana Petrochemical Limited chairman Jit Warnakulasuriya and chief executive Sen had signed the business venture agreement on March 12.
The plant is expected to employ 200 people when in full operation and have an annual turnover of a billion rupees. The SLPA said it expected to earn 100 million dollars from lease and royalty fees.

but yesterday itn news said something about us450 mn
invesment?

but yesterday itn news said something about us450 mn
invesment?

It's a separate case. Hambantota is pulling in some investments now.

It's a separate case. Hambantota is pulling in some investments now.

Well even Colombo took 10years to get some world renowned lines called in

The Ruhunu Magampura Mahinda Rajapaksa Port will be ready for container operations at the end of this year after the installation of the required cranes, the Sri Lanka Ports Authority said yesterday.

"The installation of the cranes will further add value to the sea port, which now regularly handles six car carriers on a monthly basis," Sri Lanka Ports Authority Chief Engineer Agil Hewageegayana, who is also the Project Manager at the southern sea port, told The Island yesterday.

He said that in addition to the Colombo-bound car carriers, which were earlier transferred to the southern port due to space constraints in the former, there were car carriers which were docked at Hambantota, whose cargo was transshipped between western and eastern ports. There were carriers which brought 200 and 300 cars in each shipment and they were being handled on the Ro-Ro system (Rolling in and Rolling Out) where the cars were driven manually from the ship to the jetty and vice versa.

The US$ 76 million oil tank farm project, in which 14 oil tanks had been constructed, was now complete and could store 80,000 cubic metres of oil. Three tanks would be reserved for storing oil. After the commissioning of the tanks, aviation oil would be transported by the Ceylon Petroleum Corporation bowsers straight to the Mattala airport, but there was also a proposal to connect the tank and the airport with a network of pipelines to slash transit times. There would be bunkering which could be started at the Magampura port when the oil tanks are commissioned, Hewageegayana said.

The SLPA Chief Engineer said that the US$ 808 million Phase 2 of the project, which was being funded by an EXIM Bank of China credit line, had commenced and it was expected to be completed by the end of 2015. "The second phase will add seven berths to the port, which will make it a fully fledged container port," he said. The first phase with four large berths had a smaller berth for smaller carriers, he added.

Meanwhile, two Indian and Pakistani cement companies would establish manufacturing bases in the industrial city within the port, where they would be importing raw materials, adding value for re-export, the Chief Engineer said. "Pakistan’s Thatil Cement will sign an agreement with the Sri Lanka Ports Authority on Friday for a US$ 15 million investment while India’s Habana Petrochemicals Ltd. will be investing a total of US $ 435 million in two phases for a similar cement processing project. The first phase will be US $ 135 million and the second US $ 300 million. The fact that the first phase of the port project cost the government US $ 500 million and there was an investor who was keen to invest US $ 435 million so soon, speaks volumes of the investor confidence that they had in the port."

Island (http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=76125)

Hambantota Port to make Lanka S Asian transshipment hub
Tuesday, 23 April 2013 09:11

Investor confidence for the Ruhunu Magampura Mahinda Rajapaksa Port is increasing with several global players and local investors wanting to stamp their footprint there.
The Sri Lanka Ports Authority (SLPA) has an ambitious task to attract billions of dollars worth of investments to the port and though the Opposition is trying to make a mockery of the situation, the target is very much within reach. Minister of Ports and Highways (Project) Rohitha Abeygunawardana said the US$ 650 million investments by foreign investors at the first stage of the port had further strengthened the confidence of global industrial and commercial giants regarding the success of this innovative project in southern Sri Lanka.
“The port in Hambantota is a major economic centre that has ensured the ushering of socio-economic prosperity from the South to the whole of Sri Lanka in the future,” he said.The SLPA has received many investment proposals from prospective local and foreign investors to establish businesses within the port premises. Out of the 27 proposals received, the Cabinet has approved seven investment proposals, subsequent to the recommendations by the Cabinet Appointed Negotiating Committee with the assistance of a Technical Evaluation Committee.
These proposals include those for setting up a sugar refinery plant; cement grinding/ bagging plant, fertiliser plant, petro-chemical plant and warehouses. The proposal to establish a sugar refinery was made by Shree Renuka Sugars Ltd, India which has formed a local subsidiary company, Lanka Sugar Refinery Company (Private) Limited. The SLPA and Lanka Sugar Refinery Company signed the Business Venture Agreement last year and now companies from Pakistan and even Singapore have inked agreements to set up ventures at Hambantota.
Thatta Cement Company (Pvt) Ltd, Pakistan will construct a cement grinding and bagging plant and CEO and Vice Chairman of Thatta Cement Karachi Muhammad Fazlullah Shariff told the Sunday Observer that this is the first time that the company launches operations outside Pakistan.
He said while the global demand for cement is around three percent annually, the Sri Lankan demand is around four percent.
Demand for cement
"However, we have noted that the demand for cement in the Hambantota area is around eight percent and this was the main reason for us to set up operations in Hambantota,” he said. He said when an international airport and harbour are set up, a similar demand is witnessed.
The proposed plant will employ a closed circuit cement grinding mill and cement and packing plant for cement manufacture and dispatch. The total investment is estimated at US$ 15.15 million, to be incurred during the first five years of operation.
At the commencement the minimum guaranteed production volume of the plant will be 100,000 Mt/year which will increase gradually to 1,000,000 Mt/year at the end of the first decade. Thatta Cement Company (Pvt) Ltd is the local subsidiary company of Thatta Cement, Pakistan.
He said the project would commence mid-2013 and operations are expected to commence next year. “The project would generate 50 direct employment opportunities.” The Business Venture Agreement with the SLPA would be for 25 years. Land allocation for this business venture will be four hectares. It will generate a minimum revenue of US$ 9.9 million over the 25 years, via a land lease agreement. In addition, by royalty payment, the SLPA will earn US$ 65.5 million over 25 years. The SLPA will achieve more benefits via this project as it generates vessel movements at the port. Since Thatta Cement is willing to employ more than 150 Sri Lankans, the project would benefit our country from that angle too.
In addition to this venture, McLarens Holdings Ltd (Warehousing), Agalawatta Plantation PLC (Warehousing) and ACE Distripaks (Pvt) Ltd (Warehousing) have expressed interest to commence business at the Hambantota port zone. Micro Cars Limited too inked an agreement to set up a vehicle assembly plan at the prot investment zone.
Second stage
Chairman, SLPA, Dr. Priyath Wickrama said the effective intervention of President Mahinda Rajapaksa to lure the international community to commence business in sustainably peaceful environs in the country has brought about the dawn of an era of prosperity for all Sri Lankans.
“At the second stage of the investment process at the Hambantota port, 11 more investors will arrive at the port with investments of nearly US$ 1.1 billion, which would increase the total investment by investors at the port to US$ 1.8 billion. The port in future will play a key role in the Indian subcontinent to enrich the industries in the region,” he said.
Hayleys PLC and Dragon Asia Fertiliser Limited of Hong Kong have become the first private sector entities to invest in the Ruhunu Magampura Mahinda Rajapaksa Port by committing US$ 7 million for an international fertiliser storage, processing, bagging and distribution hub.This landmark investment will result in the development of a local and international fertiliser transshipment and distribution hub of over 200,000 square feet in extent, in an area of 2.5 hectares.
Construction work on the facility, which received Cabinet approval in August, began with the laying of the foundation stone on December 5, 2011, amidst a gathering of senior government officials and senior representatives from Hayleys and Dragon Asia Fertiliser.
“This facility, which has the potential to generate significant employment opportunities for Sri Lankans and to attract vessels to the Hambantota Port, represents an important development in the infrastructure expansion in the country,” Hayleys Group Chairman Mohan Pandithage said.
“As a Group that has consistently supported development initiatives in Sri Lanka, Hayleys is proud to take the initiative in investing in the Ruhunu Magampura Port industrial zone, setting a precedent for other private sector entities to follow,” he said.
Once operational, the state-of-the-art Hambantota International Fertiliser Distribution Hub hopes to attract major fertiliser shipments from the Baltic Sea region to the Port of Hambantota, by employing its strategic location to deliver freight advantages to buyers in terms of cost and time savings.
Such cost advantages will in turn benefit the local agriculture industry, enabling the local farmers to thrive.
It is envisaged that these bulk fertiliser shipments which arrive at the Hambantota port on larger mother vessels will also be distributed to the Indian subcontinent and South East Asia on feeder vessels, the company said.
Shree Renuka Sugars Limited India, through its subsidiary Lanka Sugar(Pvt)Limited will invest US$ 220 million on a sugar refinery at the Port. The project will provide direct employment to 300 and indirect employment to 1,500 individuals.
Investment Promotion Minister Lakshman Yapa Abeywardena said that many investors were willing to commence new factories at the Magampura port and the construction of a port in Hambantota was an important catalyst for major economic development in Sri Lanka.
In addition to attracting fertiliser shipments, the facility developed by Hayleys and Dragon Asia Fertiliser is also expected to open new markets such as Africa, which has the potential to be catered to, via the Hambantota port.
Construction work
Meanwhile, the construction work of the second phase of the Hambantota Magampura Port has begun and it is expected to cost around US$ 800 million to complete the second phase of the project.
Magampura Port Chief Engineer Agil Hewageegana said, “Under this project, a new terminal will be built in the Port area.
Accordingly, five more vessels can be accommodated in this terminal apart from the current four vessels which can be accommodated in the first phase of the port project.”Upon the completion of the construction work in the second phase, the Port will cover around 150 hectares of land and accommodate nine vessels at any given time.
“We will be looking at possibilities to start construction work of the third phase of the project once the main requirements are completed,” Hewageegana said.
The total construction cost of phase one was US$ 360 million of which US$ 306 million was funded by the People’s Republic of China. According to the port master plan, 33 vessels can be accommodated at the port at any given time once construction work of all phases are completed. “The second phase of the port will provide a strong supplementary port to the Colombo Port and support Sri Lanka to consolidate its status as a transshipment hub in the South Asian region,” he said.
Sri Lanka will start operations at the 82,000 ton capacity fuel bunkering terminal of the port in October, 16 months later than the original schedule, the Ports Authority said.The State-run SLPA had originally planned to open the facility for full operational bunkering in May 2011.The US$ 130 million project contains eight tanks of bunkering oil and six tanks of aviation fuel and LPG in the initial stage.
The aviation fuel stored in the Hambantota Port could be used for the Mattala Airport, the second international airport of Sri Lanka. The Hambantota bunkering capacity could be expanded to four million metric tonnes if demand picks up.
Bunkering operation
The bunkering operation is the only part of the port not open to external investment.China Exim Bank has loaned US$ 77 million toward the cost of the terminal, which the Ports Authority will operate. China has loaned Sri Lanka the bulk of the money to build the US$ 1.5 billion port.
China will finance the expansion of the Hambantota Port and the first phase too was financed by China. It has been positioned as an industrial port with facilities to transship vehicles and also provide bunkering services.
The Hambantota Port, which opened in November 2010, is set to be Sri Lanka’s biggest port once the second phase is completed and to give the Indian Ocean country access to traffic on one of the world’s biggest East-West shipping lanes, located a few kilometres off its southern coast.
Source: Sunday Observer
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