Can Colombo port emerge as mega hub of South Asia

H.Premaratne
(Deputy Chief Operations Manager (Operational Research and Statistics)

Strategically located at the center of the Indian ocean just close to the main sea route from far east and Australia to Europe and America, Colombo is a major port of call for more than 30 main lines including almost all the top container carriers and more than15 feeder carriers. Most of the larger container carriers do not call the Indian, Pakistan and Bangladesh ports because they do not have sufficient depth and adequate port facilities to handle such vessels and also they are handicapped in other ancillary marine services vital for shipping trade.

http://img.photobucket.com/albums/v739/oshadee_i/z_p21-colombo20port.jpg

However a few ports in India have developed container terminals enabling to service 3rd generation container vessels and a few other ports are planning to strengthen their container handling capacity with foreign investments.

The Tuticorin Port Trust & PSA joint venture has developed two container berths with 370m length and 11.9m depth.Throughput in 2000 at Tuticorin was 156,978 TEUs*. Although Tuticorin is also at a good location similar to Colombo it has a limited depth of only 11.9m. and therefore it will not be a serious threat for Colombo which has a 15 m. depth. Jawaharlal Nheru Port Container Terminal (JNPT) also has been improved its capacity and container handling productivity with the investments by P & O. JNPT has 3 berths with 680m. length and 12m.depth and her throughput in 2001 was 607,000 TEUs*. Although JNPT had been able to attract some transhipment containers through direct services, due to draft limitations, it will not be able, with the current position to serve large main line operators. Port of Chennai which operates 3 container terminals with 600m. length and 13m. depth has handled 352,307 TEUs* in 2000. Although the container handling facilities at Chennai port are being planned to be further developed by P&O on BOT terms,due to draft limitation and Tuticorine’s more attractiveness to local cargo operations the chance of Chennai being developed to be a transhipment hub is not seen to be positive. Ports of Pipaw and Cochin in India , Karachi & Port Quasim in Pakistan and Chittagong in Bangladesh also have been identified as probable ports which could attract direct main line callers. Due to draft, hinterland and other restrictions the possibility of developing these ports to the hub level is doubtful.

In view of above scenario any of the Indian sub-continental ports (ISC) cannot be compared with Colombo at this stage because the depth of all those ports against Colombo is lesser 3 to 4 meters and calling large vessels into such ports would be a very risky operation .In addition to above the ships’ requirements do not confine only for cargo handling facilities but for other ancillary services such as bunkering, ship repairs etc. as well. In this context Colombo is far ahead than the Indian sub-continental ports. Top of all that the deviation cost from the Main shipping route to these ports will be very much higher than that for Colombo. As such, some of these ports could be looked in as possible mini-hubs to take Indian cargo by feeder vessels to Colombo or any other major hub.

Mega hub
Therefore, the remaining major competitors for a regional mega hub port status in the south Asia region with Colombo will be Singapore, Port Kelang, Salala , Dubai and Aden. Let us examine the degree of competitive advantages / disadvantages of Colombo against Singapore ,Port Kelang , Salala and Aden.

Except JNPT, Tuticorin and Chennai, all the other ISC ports largely depend on outside hub ports for the transhipment of their cargo. In the event of the introduction of giant container ships (8,000 TEUs to 18,000 TEUs) in the next few years to come (Lloyds List – 7th July 2000) and the concept of “Mega hub” with 17m to 21m depth becomes a reality all ISC ports will have to remain as feeder ports.

In this context the Port of Colombo which is the closest hub to all ISC ports except for Kandla and Karachi appears to be having greater chances to be the Mega hub port in the ISC region.

*Containerization International - 2002

Fig.1- Distance from feeder ports to Colombo and other major hub competitors.

http://img.photobucket.com/albums/v739/oshadee_i/ColHorbour1.jpg

Source: Colombo Port South Harbor Development Project (CPSHDP)
Int. Report – Vol.1 and The Ships Atlas.

Fig. –1 above which shows the distances from each feeder port to major hub ports in the ISC region reflects the locative advantages of Colombo against other major hub competitors. However Dubai and Salala ports were more competitively located for Kandla and Karachi when compared with Colombo.

In terms of transportation cost and the deviation time from the main sea route, Colombo is more attractive except for Kandla and Karachi than other competitors.

Fig.2-Feeder Cost (US$) and sailing time from major hubs to Mumbai and Chennai.

Mumbai Chennai
F/cost SailingTime F/cost SailingTime
Colombo
212
2 ds 15hrs
200
1 to 2 days

Singapore
273
7 ds 7hrs
239
4 to 5 days

Salala
219
3 to 4 days
261
6 to 7 days

Aden
242
4 to 5days
281
7 to 8 days


Source: 1FC – DSC Report - Extracted from CPSHDP Interim report and approximate figures obtained from pilots

Colombo is the cheapest regional hub in terms of Feeder cost and also offers the shortest transportation time. In the shipping world it is said that “time is money”. Minimizing the lay time and dispatching the vessel in time is of paramount importance because “once demurrage always on demurrage ”.

ADB appointed study team which consisted of high caliber consultants from Germany, USA, Australia and Sri Lanka in their preliminary report on Colombo south port development states (pg3-23) that “ Colombo is the least cost hub for all ISC Ports except Kandla and Karachi both of which are more competitively served from Aden. This assumes that productivity at Colombo is at least the same, if not better than that of other hub ports.”

However , the higher productivity and faster turnaround time might supercede the above advantageous. Interesting to note that Port of Colombo has adopted various measures to Improve its productivity and the turnaround time and encourage the shipping lines.

Many incentive measures such as rebate schemes (T/S volume rebate, East Coast rebate, Handling Discount) and Free storage of 21 days for T/S containers etc. have been offered by the Port of Colombo to reduce the per unit handling costs. In order to encourage the customers the SLPA is in the process of entering into Port (Terminal) Services Agreements with Main Line Operators. As the first step the SLPA recently entered into a Terminal Service Agreement with Hanjin Shipping which is a major line serving Colombo port. In the near future the SLPA will enter into more such Service Agreements where volume handling will definitely put the shipping lines at a very advantageous position.


Reforms

At Jaya Container Terminal (JCT), the recently introduced reforms, such as the Target Bonus System which is based on a constantly functioning Productivity Monitoring System. motivation of the workforce for working on public holidays such as the May day, Sinhala /Tamil New year day Christmas day, welfare measures including better transport system, skill development etc. had geared for considerable productivity and efficiency improvement. Recently in many occasions JCT had been able to achieve a Gantry Productivity of over 25 moves p/h and vessel productivity of over 75 moves p/h. South Asia Gateway Terminal (SAGT) also achieved similar productivity and efficiency. Both terminals together increased their daily handling volume tremendously during the recent past. On the 15-07-2002 both terminals handled 8,231 TEUs registering the highest ever per day volume in the port history. During the recent past Colombo has been achieving outstanding improvement in container vessel turnaround time as well. Container handling trade which suffered seriously with the imposition of the war risk surcharge after the terrorist attack on Katunayake Air port has now raised her cargo handling to a better position.. Transhipment box handling is also on the increase at a considerable rate.

In the mean time The Sri Lanka Ports Authority recently converted its premier Container Terminal (JCT) from a government authoritative institute to a more liberalized and marketing oriented organization. The Queen Elizabeth Container Terminal is being developed and managed (on BOT basis for 30 yrs.) by the P&O led consortium; South Asia Gateway Terminals ltd.(SAGT). It is now in the process of extending ,re-equipping, and re-structuring the terminal. Three berths with 940m length and 15m. draft to handle 1 million TEUs will be completed towards the end of 2003. By now SAGT has completed 650m length with 15m draft and hopes to handle 600,000 TEU by the end of 2002. Unity Container Terminal -UCT (formerly known as the North Pier) also has been developed with two container berths with 340m length and 9 to 11m depth mainly for handling feeder vessels. The UCT would be fully operational with 3 quay cranes,8 transfer cranes and 45 prime movers & trailers with a handling capacity of 230,000 TEUs per annum.


Developments
More importantly, having realized the present developments of the global shipping industry the port of Colombo has taken several steps to expand the container handling capacity. The shipping industries searching for economic of scale to bring down the unit cost are now in the process of introducing Mega ships of 7000 TEUs and 12,500 TEUs to 18,000 TEUs with a length of 325 to 381m., a breath of 46m to 57m. and a draft of 14.5m. According to the orders that are being placed for new ships at present , significant number of vessels of 7,000 to 8,000 TEUs capacity with 325m. length, 46-50 m. breath and 14.5m. draft will come into operation before 2008.

In view of above the Port of Colombo has taken initial steps to construct a newest container terminal (Colombo Port South Harbour ) with the intention of attracting mega container vessels. The proposed terminal will be fully completed with 12 berths in six phases of two years each over a span of 20 years and it will have a total capacity of 10 million TEUs. At the first phase, two berths with 720m to 800m length and 17m depth are expected to be completed by 2007. Thereafter at every phase , two berths of the same capacity will be completed. At later stages, remaining berths will be developed with greater length and 21m depth to meet the demand by mega vessel operators. These berths will be fully equipped with latest container handling equipment , modern automation systems and state of the art of technology. The South harbour of Colombo port once developed would be able to meet the growing demand for container handling in the South Asia region

With above super infrastructure developments, supported by the skilled and reliable workforce and high quality ancillary services such as bunkering, ship repairs ,ship chandelling ,duty free shopping etc. the port of Colombo would be powerful enough to play the role of a mega port, offering comparatively a profitable service to the shipping lines operating ISC cargo than any other competitor in the region.

http://img.photobucket.com/albums/v739/oshadee_i/CristoforoColombo_1563.jpg

yes...even in the wake of the tsunami..it will stage a comeback...

Sethu-Samuthram ship canal project of India becomes a villain to the advantages enjoyed by lanka.

TUTICORIN PORT of India is all set to become a mega port in this region cos of that project..colomo will loose its importance..

Sethu-Samuthram ship canal project of India becomes a villain to the advantages enjoyed by lanka.

TUTICORIN PORT of India is all set to become a mega port in this region cos of that project..colomo will loose its importance..

This is why sri lanka has started the construction if the port in hambantota even when india opposed to the construction .. its cause of the TUTICORIN PORT i suppose .. the cinstruction has already started ,,,..... :)

Sethu-Samuthram ship canal project of India becomes a villain to the advantages enjoyed by lanka.

TUTICORIN PORT of India is all set to become a mega port in this region cos of that project..colomo will loose its importance..

I think you can pretty much discount Indian infrastructure projects. They'd probably be underfunded and caught in months of bureaucratic hurdles and red tape. There are a plenty of areas wheere India's neighbors like Bdesh, Maldives, Pakistan, Sri Lanka are way ahead of India. For instance, micro credit is working excellently in Bdesh, Sri lanka's per capita is a lot higher than India's, China has excellent infrastructure, Pakistan is more open to global investments and trade than India...in fact india lags in several areas...and there are plenty of forces in india that will peg it back...Sri lanka should just focus on making Colomo a great port...in business...the first to the mark wins as canal project or not....if SL can build a port capacity that can service India more than India's slow pace of reforms and infrastructure development allows it to build anything...most foreign companies will flock to Colombo making Tut port unviable and the canal project unviable as well...its a competition out there...India only wins if you dont step up...if you step up, India doesnt have a chance with its lumbering bureaucracy and slow execution of projects...

an alarming trend is plenty of Bdesh indicators in social sectors ar now fast catching up with India's and in manya reas outstripped India's...

I'd also suggest that SL shoul make Colombo into a financial hub by allowing offshore investment companies to be setup there to channel investments into India...this would esnure that Colombo develops into a financial hub as well and more foreign banks ould setup offices there etc...

Remember...India has a pretty administration and bureaucracy and almost all project run years behind schedule...so it is upto SL to take advantage of that slumbering bureaucracy and the slowness induced by a large nation like India

The need to position Sri Lanka as a provider of top-end, high value adding outsourcing destination was highlighted recently at a CEO’s conference, titled “Offshore to Sri Lanka.”

This conference organised by the ICT sub-committee of the Ceylon Chamber of Commerce and the World Bank in partnership with the Board of Investment (BOI) and the Information and Communication Technology Agency (ICTA) comprised of industry experts, venture capitalists and over 150 public and private sector CEOs.

It aimed to create awareness about Sri Lanka’s potential as an off-shoring destination and to galvanize CEOs into collectively realizing this potential.

According to World Bank Senior Economist Ismail Radwan, Sri Lanka has the largest number of UK qualified accountants outside of UK. “This itself is a unique differentiator to position Sri Lanka as a provider of high quality financial services. Although Sri Lanka needs to focus on creating jobs with the low-end, low-value, adding call centre type of Business Process Outsourcing (BPO) ventures the long-term focus. This should be to position itself as a provider of “knowledge based outsourcing services”. Sri Lanka’s inability to compete with countries like India and China in terms of the number of graduates and the size of the skilled labour pool necessitates it to move into this niche market,” he said.

The World Bank Senior Economist highlighted five key policy changes required to propel Sri Lanka up the offshoring value chain. Achieving peace and political stability, expanding and improving education, removing regulatory barriers, specially with respect to labour laws, deregulating the telecommunications market and consolidating industry associations in the offshoring sector was seen as key to projecting Sri Lanka’s image as an effective offshore destination.

Latest Projects

Construction of 3rd Berth & Terminal

http://www.slpa.lk/Plan.jpg

Additional container handling capacity 230,000 TEUs per year
Installation of 3 quay side Gantry cranes & 8 RTG cranes 50 Prime Movers and Terminal Tractors
Implementation of Computer System.

Dredging of North Channel of Colombo Port from 11m to 13m depth.

http://www.slpa.lk/NotyhP.jpg

Duration - 30 months - From Aug 2002 - Jan 2005
Total Estimated Cost - Rs. 1100 Million
Project Completed

COLOMBO SOUTH HARBOUR DEVELOPMENT PROJECT.



The proposed Colombo South Harbour will be located west of the present South West breakwater in an area of approximately 600 hectares. It will have twelve berths and a harbour basin area of 290 hectares.

The proposed Harbour will have 4 terminals of over 1,200m in length each to accomodate 3 berths with alongside depths of 18m and provision to deepen to 23m, with a harbour basin depth of 18m and a 600m turning circle.

The development of Phase I of the Colombo South harbour is to be carried out in two stages. The first stage of development involving the basic infrastructure with public funds (US$ 350 million) and the stage two the other terminal facilities (US$ 700 million) with private sector participation.


DEEPENING OF HARBOUR BASIN TO 15m & CHANNEL TO 16m

Dredging the Colombo Port to accommodate Super Post Panamax Container
ships On Schedule
Total Estimated Cost - Rs. 1200 Million
Project Completed

the investment climate and infrastructure is really good in tamil nadu as a state but if we consider india as a whole yes there are short comings. i think maran and jaya will make this sethu project a success ( ramanathapuram is my ancestral district , i get pissed off each time people call my district backward and underdevleoped, this project is not a luxury but a necissity for our district's economic progress)

the investment climate and infrastructure is really good in tamil nadu as a state but if we consider india as a whole yes there are short comings. i think maran and jaya will make this sethu project a success ( ramanathapuram is my ancestral district , i get pissed off each time people call my district backward and underdevleoped, this project is not a luxury but a necissity for our district's economic progress)

I believe those people you are referring to are politicians...your very statement that these types of projects depend on a politicna's will and not institutional mechanisms/private ventures clearly says that these projects have no chance of being completed on time and at the right capacity levels...the Indian governments' reluctance to allow private ventures and overseas FDI into building such projects will sound the death knell for such projects...

On the other hand SL is more open than India and have better administration and planning procedures...and definitely less political influence in such projcts which is key...I think Colombo port's expansion will happen months ahead of any sethu project...and with that will sink the hances of the viability of any canal dredging project.

MP

the investment climate and infrastructure is really good in tamil nadu as a state but if we consider india as a whole yes there are short comings. i think maran and jaya will make this sethu project a success ( ramanathapuram is my ancestral district , i get pissed off each time people call my district backward and underdevleoped, this project is not a luxury but a necissity for our district's economic progress)

do you have any idea of what a firm called AMBA is doing in SL? if you can tell me some info that'll be helpful.

MP

wht does AMBA stand for ???

what is `amba????

wht does AMBA stand for ???


It is a company that employs plenty of charterd accountatnts in Colombo to do financial research work for companies in the US and UK.

MP

http://www.boi.lk/NewsImages/13122005_173447.jpg

Sri Lanka Ports Authority (SLPA) is planning to dredge the North Channel to 13 meters depth to enable larger vessels to visit Colombo Port.

This project estimated at a cost of Rs.2 billion is expected to increase the export and to ease traffic congestion and reduce waiting time for ships entering and leaving the port.

“The project funded by the Japan Bank for International Cooperation (JBIC) will also upgrade the Jaya Container Terminal (JCT) and study the enhancement of container handling capacity at JCT and UCT making the Port as the hub of South Asia,” said the Director for the National Council For Economic Development (NCED) Rohantha Athukorala.

All vessels had to use the main channel for entry and exit, as the North Channel at a depth of 11m does not permit the passage of large draft container ships. The North Channel was navigable only for vessels with a draught of less than 9.5m and is a major bottleneck for the future growth of container traffic.

The first part of the project of dredging to 13m and opening the North Channel of the port for bigger vessels in order to ease traffic congestion, reduce waiting time for ships entering and leaving the port has already been launched.

“This initiative will be in line with the Global trends of top ports in the world. The North Channel being dredged to 13m will also alleviate possible ship traffic congestion in the port in future. Another key objective of the Rs.2 billion investment is the threat of larger container vessels bypassing Colombo due to this constraint. This will now be avoided. This puts Sri Lanka on a stronger footing to claim to be a leading shipping centre and mega transhipment hub of South Asia,” he explained.

This project will make the Colombo Port capable of catering to mega container ships, thus driving productivity up together with a reduction in the turnaround time as well as the waiting time. The next phase of the project is the enhancing of storage capacity and safety of container handling of the Jaya Container Terminal (JCT) 1 and 2, which will be completed by the end of 2006.

^^Great news

Can Colombo port emerge as mega hub of South Asia

Yes it can. If there's a will there's a way :)

Sethu Canal project is moving at fast rate. What sri lanka can do to compete is have much better quality and effeciency. BTW, someone said work in India does not get done.
Well, here is something that got done on time with great success.
Delhi Metro--Now metros are coming up in many other cities.
http://img113.imageshack.us/img113/9901/delhimetro7bigk78xg.jpg
http://www.grijalvo.com/Pau_Sarradell/Delhi_Metro_2004_3_small.jpg

^^There are plans to create a Metro system in Colombo;););)......

yeh i hrd smethn abt it....tht its gonna strt by d end of d year....gt any mre info?

yeh i hrd smethn abt it....tht its gonna strt by d end of d year....gt any mre info?

ur an sms adik :D

hehehe.....sure am!

yeh i hrd smethn abt it....tht its gonna strt by d end of d year....gt any mre info?

http://www.skyscrapercity.com/showthread.php?p=8480645

hrd tht the sybway project has been cancelled cz of environmental concerns and the green light has been given to a malaysian country to start a 1 billion US dollars(!!) mass transit system in the city!

hrd tht the sybway project has been cancelled cz of environmental concerns and the green light has been given to a malaysian country to start a 1 billion US dollars(!!) mass transit system in the city!

Thats the link I posted above. Also involves Siemens of Germany and an indian company!

( http://www.skyscrapercity.com/showpost.php?p=8480645&postcount=1 )

If it happens it would be really good!! How is the airport express rail going??

its under construction....

^^PCK...you're in Colombo ya....if it's not too much of a hassel, maybe you can provide some pics or updates on the MT system??:D:D

yeh i'll provide d updates bt pics are really risky with the current security situation in the country...i might end up under lock! :0 cz u r not allowed to take pics in the main city area where there are importnat buildings and estabilshments without permission!

The article i posted said that construction hadnt started- it was only a feasibility study, so im confused!

PCK, do you have any idea as to what routes are being set out for this MRT?

Also a few years ago didnt Delhi Metro do a study in conjunction with the govt in regards to a MRT??

^^Well after the study they felt that a subway system would be too expensive or that it wasn't suitable enviromentally.......

i srlsy dont know the route but i did hear and see the foundation stone being laid and all! i'll try 2 find out thugh!

here are some of the projects ni the pipeline for Sri Lanka

Would be great if someone can update news on all of them

1. The construction of the 116-km highway between Colombo and Kandy in Sri Lanka.


2. The construction of the Outer Ring Road in Colombo, Sri Lanka.


3. The expansion of Colombo Port in Sri Lanka.


4. The development of Colombo Airport in Sri Lanka.


5. Redevelopment of UDA Land in Colombo, Sri Lanka.


6. Construction and operation of the Monorail System in Colombo, Sri Lanka.


7. Development of Residential House for Government servants in 24 districts in Sri Lanka.


8. Privatization of highway from Colombo to airport in Sri Lanka.


9. The construction of Estate housing in Colombo, Sri Lanka.



10. The development of a Theme Park in Kandy, Sri Lanka.

^^Monorail....sound interesting;);)

^^Monorail....sound interesting;);)

I think he means the MRT (since its elevated off the ground) :)

Also, what is the theme park he is talking about? When I was there I saw a theme park under construction in the outskirts of Colombo somewhere. Can someone shed some light?

A theme park opened several months ago if i recall correctly. But I haven't had the time to visit it just yet

yep its called lesiure world and its in avisawella! take a trip!

is Colombo's port going to attempt to compete with Vizag? theres going to be a tough fight if it is...

is Colombo's port going to attempt to compete with Vizag? theres going to be a tough fight if it is...

Im pretty sure that CMB's port is the biggest in South Asia. :)

Also, Where abouts is this Vizag in the first place??

Im pretty sure that CMB's port is the biggest in South Asia. :)

Also, Where abouts is this Vizag in the first place??

Vizag is short for Vishakapatnam. It is on the eastern coast of India in Andhra Pradesh. I think wit hthe opening of Sedu Samudram canal ports like Vizag, Tuticorin might gain some advantage over Colombo

Im pretty sure that CMB's port is the biggest in South Asia.

In terms of TEUs (container):

Between April 2005 and March 2006, JNPT, India, handled 2.67 million TEUs and had a growth rate of about 15%. (India's financial year is April to March.)

In the year 2005 Colombo handled 2.45 million TEUs.(http://servesrilanka.blogspot.com/2006/01/robust-slpa-helps-colombo-port-to-grow.html) and had a growth rate of 10.6%.

Singapore was number one at 23.2 million TEUs.
_____________

In terms of tonnage:

Total Tonnage handled at Indian ports between April 2005 and March 2006 were:

Vizag - 55 MT, Kolkata 53 MT, Chennai 47 MT, Kandla 45 MT and Mumbai 44 MT.

Shanghai was number one with 443 MT.

MT = million tonnes.

Can someone please find the total tonnage for Colombo in 2005? For the first six months it was 16.7 MT.

http://www.slpa.lk/News/Colombo-Port-146.htm


____________

In terms of shipping tonnage?

Dunno

___________

Transhipment Port

Colombo ranked number 14 in the world in 2004 and was number one in South Asia. It handles 70% of India's transhipment cargo.

^^

Thanks for the above info!!

However, I reckon the situation will get worse for CMB unless they build the South Port very.. very soon.

^^

Thanks for the above info!!

However, I reckon the situation will get worse for CMB unless they build the South Port very.. very soon.

Why would it get worse? Colombo will remain a premier transhipment centre in the world. Of course growth will partly depend on expansion rate of India's sea trade (export + import) with the rest of the world.

so Colombo is more of a transit point for ships rather than the beginning or destination of ships?

Colombo needs the south port expansion soon, its is underway afaik.

Why would it get worse? Colombo will remain a premier transhipment centre in the world. Of course growth will partly depend on expansion rate of India's sea trade (export + import) with the rest of the world.

I heard that the port will reach its full capacity very soon.. which means that there will be no more room unless it is expanded.

Lankan Govt promises to stop take over of Apollo

The Sri Lankan government has promised that it will restrain a local corporate raider, who is on the verge of taking over the state of the art Apollo Hospital in Colombo.

But the affected parties are keeping their fingers crossed, given the Sri Lankan background of going back on promises.

After the Indian High Commission impressed upon the Sri Lankan government that the hostile take over bid by the local business magnate, Harry Jayawardena, would affect investor confidence "very negatively" the Sri Lankan Minister for Investment Promotion, Rohitha Bogollagama, announced that he would prevent the merger from taking place.

"I have assured the Indian High Commissioner that bullying tactics will not be permitted and the wellbeing of investors would be safeguarded," Bogollagama told The Island.

Jayawardena's companies, including the Sri Lanka Insurance Corporation (SLIC), last month upped their stake in the Lanka Hospitals Corporation Ltd (ie: Apollo) from 20 per cent to 38 per cent, with a SLRs 700 million investment, overtaking Apollo Hospitals of India, which owned 36 per cent.

The Sri Lankan raider was due to make a mandatory offer of SLRs 28 per Apollo share to other minority shareholders, as per the Takeovers and Mergers Code.

But according to informed sources, the other investors in the company were subjected to strong arm tactics by Jayawardena.

The Indian High Commission pointed out to Minister Bogollagama that institutions like the insurance corporation should play a steadying and balancing role in the companies in which they had invested, and not play a part in hostile takeovers.

It pointed how in India, institutions like the Life Insurance Corporation played a moderating role.

If such takeovers became the order of the day, international investors would hesitate to invest in Sri Lanka, the mission said.

It was explained to the Minister that institutions like Apollo and the Indian Oil Corporation had set new standards and raised the bar in hospital services and oil retailing in Sri Lanka.

Crippling them would only harm Sri Lanka's economic development.

Apollo hospital was established at the request of the former President Chandrika Kumaratunga, and had the full backing of the then Leader of the Opposition Ranil Wickremesinghe.

Minister Bogollagama subsequently announced that President Mahinda Rajapaksa had assured the Apollo management that the state-owned Bank of Ceylon's Property Development Ltd, which owned 13.6 per cent of the stake in Apollo, would not accept Jayawardena's offer.

However, given the Sri Lankan government's past record in keeping promises and a tendency to change conditions midstream, the concerned parties were waiting gingerly for developments.

Earlier, it was expected that Apollo India would pull out, but it was made clear by its financial director Suneetha Reddy that it would stay put in Sri Lanka, as it was a good investment destination.

Not been easy going for Apollo

Even though the 500-bed Apollo has set new standards in health care, it has not been a very popular hospital, partly because of its high rates.

"Wealthy Sri Lankans who were going to Singapore for treatment, continue to do so. And the middle class Sri Lankans finds Apollo too expensive," explained an Indian doctor at the hospital.

The doctors and other technical staff also face visa problems.

The Sri Lanka Medical Councils' hostility to the Indian doctors and staff working in the hospital has reportedly resulted in just about third of the visa seekers getting it.

Doctors going away in the middle of treatment, has created problems for patients.

Set up at a cost of SLRs 2 billion, the hospital is struggling to keep afloat, according to Harry Jayawardena.

The Sunday Leader reported that the hospital made a loss of SLRs 55.9 million up to March 31, 2005 and made a profit of SLRs 3.9 million in the financial year ending March 31, 2006.

The Daily Mirror Financial Times quoted Jayawardena as saying that his attempt could not be taken to be a hostile take over bid. It was only a "strategic investment to add value to the hospital's investors."

Jayawardena's companies have a stake in Asiri Hospital, a popular hospital, and he is planning to set up world-class hospital in Colombo with the help of Raffles Hospital of Singapore.

http://www.hindustantimes.com/news/7598_1762793,000500020002.htm

What are your opinions on this??

you cant believe harry jayawardena...he'll say smethn and do smethn else!

you cant believe harry jayawardena...he'll say smethn and do smethn else!


LOL!!

But how do you feel about the whole issue (not just the bold bit about the new Raffles Hospital)??

he's a shrewd bussiness person.....his goal is money...rmbr whn he tried 2 tke ovr tht bank???? was it HNB? he's tryin to do the same with apollo...so tht he cn gt more money and increase his tally of super luxury cars and mansions lol!

Had SLIC remained in govt hands, this never wouldve happened!

Colombo ranked number 14 in the world in 2004 and was number one in South Asia. It handles 70% of India's transhipment cargo.

70% is a heck of a lot. Are you sure this is right? :)

This looks quite promising!

Colombo Port expansion on target

Uditha Kumarasinghe and Manjula Fernando

COLOMBO : The Government is to increase the container handling capacity of the existing Colombo Port by 2009.

The expansion of the Colombo Port would be essential and additional capacity has to be operational by 2009-2010, Cabinet Spokesman Minister Anura Priyadharshana Yapa told the weekly Cabinet Press briefing yesterday.

The Cabinet has approved the memorandum submitted by Ports and Aviation Minister Mangala Samaraweera on the Colombo Port Expansion Project (Colombo South Harbour Construction).

The Cabinet has given approval to appoint a Procurement Committee and a technical Evaluation Committee to undertake Procurement Action for the ADB funded project.

Approval has also been given to re-constituting the Cabinet Appointed Negotiating Committee and the project Committee to handle matters pertaining to the Container Terminal Concession.

The Cabinet has also approved to appoint an Advisory Committee to promote port competition and the appointment of consultant M/s Scott Wilson Kirkpatrick & Co. Ltd. who completed detailed designs to be appointed construction supervising consultant with the concurrence of the ADB.

The Minister said the Asian Development Bank has provided US$ 10 million for consultancy services to study measures to improve the efficiency of the existing Colombo Port and to formulate a Business Plan, detailed engineering designs and tender documents for the new South harbour.

According to the tentative time schedule, work will start in the latter half of 2007 to complete work during early 2010, he said.

more..http://www.dailynews.lk/2006/10/13/news20.asp

Colombo Port yet to gear for mega carriers

by Lalin Fernandopulle

Mega container carriers may have to be shut out in another two years' time, if the Port of Colombo does not undergo modifications at the earliest. Modern deep sea facilities will have to be effected soon, to take in gigantic container carriers.


Colombo port

Mega container vessels then have no other option except to opt for modern ports such as Salala-Aiden, Port of Dubai, Tanjum Pelapase of Malaysia or the Port of Singapore. The Port of Chennai is also developing fast and it would become a hub in the region in the near future. The development of the Colombo South Harbour will be the only viable solution if we are to maintain the hub status, Chairman Aitken Spence Shipping Ltd., Dr. Parakrama Dissanayake said.

Dr. Dissanayake made these observations at a seminar on the 'Current global shipping trends and its implications on the Port of Colombo' organised by the Transport and Logistic Division of the University of Moratuwa.

Mega container carriers need a 16 - metre draft and also gantry cranes that could handle 22 containers across the ship. Cranes with double trolleys, faster crane improvements, more cranes per ship, automation and reduction of dual times are facilities that will be necessary to meet the demands of the advancing global shipping industry, Dr. Dissanayake said.

If authorities fail to go ahead with the development activities of the Colombo South harbour there would be a capacity crunch by the year 2008 and the present harbour basin within the port will not be able to accommodate vessels with a length of 400 metres. Approximately 30 percent of the ships coming on stream are 8000 TEU plus vessels having a draft of 15 to 16 metres which the present port cannot cater to.

In the 1980s the average size of a ship was 975 TEUs with the largest being 3,057 TEUs. Today the average size of a ship is 2191 TEUs while the largest in the world fleet is 9200 TEUs. There are designs in place for the construction of Malacca Max with a capacity of 18100 TEUs and Samzung Suez Max with a capacity of 14 000 TEUs.

The Port of Colombo from 1997 to 2002 handled a volume of 1.7 million TEUs per annum. Currently the Port of Colombo has an annual design capacity of 3.3 million TEUs. The demand to accommodate a larger volume will outpace the capacity by end 2008, he said.

Despite the comparative advantage we had over the other ports in the region the growth was flat. As a result of the reforms initiated by the Sri Lanka Ports Authority (SLPA) in 2002 the Port of Colombo witnessed a double digit growth and handled approximately 2 million TEUs.

Jaya Container Terminal and South Asia Gateway Terminal (SAGT) with world class terminal facilities have done well in sustaining growth levels during 2005.

The cost of developing the south, west and east terminals of the Colombo South harbour with the breakwater and dredging work would be around US$ 1.6 billion. The first phase which would include the construction of the breakwater and dredging will cost nearly US$ 300 Million. The construction of the first terminal quay walls and equipment would cost approximately US$ 280 million.

The BOI is looking at attracting US$ 1 billion in FDI in 2006. BOI with SLPA could use the Colombo South Harbour as the flagship project to attract foreign investment. The private and public sector partnership will be an effective mechanism to accelerate the development activities of the port, Dr. Dissanayake

SLPA launches its biggest development project

President Rajapaksa flags off Colombo Port Expansion Project; Once completed capacity will be 12 million TEUs up from 4 m at present

By Sunimalee Dias

The Colombo Port Expansion Project (CPEP), the largest infrastructure development project commenced with a US$1200 million investment.

Announcing this occasion as the “momentous event”, Foreign Affairs, Ports and Aviation Minister Mangala Samaraweera said this would be largest development project undertaken by the country.

In addition he pointed out that this year the Colombo Port would be able to cross the 3 million TEUs, establishing another milestone.

“Upgrading of the Colombo Port is critical to the shipping industry,” he said asserting that this project will provide for Sri Lanka to be ranked among the best ports in the world.

In addition it was projected that through this venture by the Sri Lankan government the Colombo Port would be able to establish itself as the first port in South Asia to handle 18000 TEUs. In this respect, the minister pointed out that the shipping lines were already drawing up plans.

The CPEP entails the building of 4 container terminals of 4 berths each over a period of several years, which will ultimately lead to a threefold increase in port capacity.

The CPEP, at its commissioning, will go down as one of the most significant infrastructure projects in Sri Lanka’s history. This project, which will result in the creation of a government-built and owned harbour facility, will include public-private partnerships in the provision of terminal services.

The project was inaugurated by President Mahinda Rajapaksa at the Colombo Port yesterday by laying the foundation stone who observed that this would serve as a significant location as a port for the whole of South Asia in addition to being able to increase its capacity by double or triple the amount already achieved.

Samaraweera observed that there is diversity in terminal management and would also have an equity stake in each terminal being developed, and hopes to maximize on the market-building, training and knowledge-transfer opportunities available through such joint ventures.

The project upon its completion by 2010 the capacity of the Colombo Port will be approximately 12 million (TEUs) compared to its existing annual maximum capacity of around 4 million TEUs, a number that will soon be reached, as the port achieves its 3 millionth TEU milestone within this month.

Each new terminal would be of 1,200 metres length, and have between 3 and 4 berths, depending on the operator’s choice of configuration. The first terminal will become operational in 2010 and have a nominal capacity of 2.4 million TEUs, with the others being brought on-line as the market demands it. The new port basin will have a dredged depth of 18 metres, with an access channel depth of 20 metres. It is planned to incorporate the latest generation of yard planning and container handling equipment and techniques, with the aim of maintaining berth and vessel productivity at class-leading levels of performance.

The minister stated that the commencement of the inland harbour is scheduled for the first quarter of next year.

Meanwhile, Sri Lanka Ports Authority (SLPA) Chairman Saliya Wickramasuriya said the long awaited project inaugurated would essentially bring about development and business opportunities thereby enhancing economic development of the country.

He asserted that the concessionary funding worth Rs.35 billion has been provided as a loan by the Asian Development Bank (ADB) for the commencement of this project.

Tender documents will be issued internationally from December 26 and it is expected that awarding of the construction tender would take place by July 2007 for a construction period of 39 moths for completion in 2010. The terminal construction should be also be completed in 2010.

http://www.dailymirror.lk/2006/12/19/ft/19.asp


Sri Lanka launches $1.2bn port expansion

COLOMBO: Sri Lanka on Monday unveiled a 1.2-billion-dollar plan to expand the island’s main sea port to triple its container handling capacity, the Sri Lanka Ports Authority said. The port of Colombo will add four terminals, each with four berths, under the project launched by President Mahinda Rajapakse. Construction work is expected to begin in July next year and be completed within 39 months, the state-owned company said. It said the current capacity of four million containers a year will be raised to 12 million once the work is completed. The estimated cost for the expansion is $1.2 billion, but the port authority did not give funding details. “This project, which will result in the creation of a government-built and owned harbour facility, will include public-private partnerships in the provision of terminal services,” the authority said.

http://www.thenews.com.pk/print1.asp?id=36074

Sri Lanka president will launch port expansion project


Dec 18, 2006 (LBO) – Sri Lanka's President Mahinda Rajapakse Monday kicked off a million dollar project to expand the Colombo port, which will triple existing capacity and enable it to service larger vessels in the future.

The 1.2 billion dollar project, the largest port development undertaken so far, will add four terminals, each with four berths to existing facilities, the Sri Lanka Ports Authority said.

Each terminal would be 1,200 metres in length and have between three to four berths.

http://www.lbo.lk/newsimages/Colombo%20Port%20Expansion%20Project%20Model.jpg
An artists impression of the Colombo port expansion plan (Source: SLPA)

"The first terminal will become operational in 2010 and have a nominal capacity of 2.4 million TEUs (Twenty-foot Equivalent Units), with the others being brought on-line as the market demands it," the Sri Lanka Ports Authority said.

To accommodate deeper vessels, the harbor basin will be deepened to 18 metres while the channel carrying the vessels will be 20 metres in depth.

Project Fact Sheet:

• Two breakwaters, 5 km and 1 km in length
• Dredging of harbour channel to 20m depth estimated volume being 13.6 million cubic metres
• first terminal will be 1200m in length, sufficient for 3 x 400m berths
• construction tender expected to be awarded by July 2007; construction period is 39 months
• Phase 1 includes breakwater and 3 terminals
• Phase 2 includes an extension of the breakwater and one more terminal

Once completed, the Colombo Port will have capacity to accommodate around 12 million TEUs each year, the statement said.

The port, current capacity hovers at around 4-million TEUs, with ongoing transshipment volumes expected to push 2006 volumes up to 3-million TEUs, SLPA said.

The first phase will include building breakwater and dredging the harbor basin followed by the construction of the first container terminal.

The government is expected to foot the bill during the first phase.

Initial work including a 3-kilometer breakwater, will cost an estimated 300 million dollars, with private sector expected to chip in with financial assistance during the second stage of the project.

SLPA says it plans to incorporate latest generation yard planning and container handling equipment and techniques to maintain berth and vessel productivity.

In addition to container cargo terminals, the port has Roll On – Roll Off and bulk cargo terminals that help major vehicle manufacturers export their vehicles to and through the island from this port.

"This project, which will result in the creation of a government-built and owned harbor facility, will include public-private partnerships in the provision of terminal services," SLPA said.

http://www.lankabusinessonline.com/fullstory.php?newsID=2029092296&no_view=1&SEARCH_TERM=7

But the other idea is two actually have about 10-12 Million TEU's at CMB port not only a huge port and nithing else...

Hambantota port

http://www.slpa.lk/HTota-Draft.jpg

copyright. sri lanka port authority

That is one great render, and isnt the Galle port going to be like a marina for rich dudes' yatches ?

Awesome port (Hambantota) good location, i think Mahinda is gonna really develop his home province.

Hambantota port

http://www.slpa.lk/HTota-Draft.jpg

copyright. sri lanka port authority

Does anyone know how the construction and funding for this is going at the moment? Has work started on it?

Also with regards to the Colombo Port expansion projct, is it really nesccessary? [[ India's Sethumsumu-whatever canal thing is in fact designed to put Sri Lanka (specially Colombo) out of business in terms of strategic location ect (althought SL does have a chance of being the hub for the region- which i hope the current government will fulfil)-India's canal project has huge environmental repercussions for SL too in addition to the economic ones, yet those Indians repeatedly denied the SL government access to the documentation which details every aspect of the project. Damn Indians -Government that is- they have done enough to ruin SL over the years and still treat us badly. Arggh, sorry for spewing that out not exactly good for first post- i won't say anymore about this.]]

Wouldn't it make more sense to spend the $1.2 Billion on the Hambanotta port? Which has for more potential that Colombo? Canal project or no canal project one the of the worlds busiest shipping lines only a few km's away and that won't change.

In order to service the new generation of container ships and Colombo Harbour should be upgraded since the current facilities are not enough. And also the Colombo Harbour is going to exceed its existing capacity soon.
And In order to defend Colombo as a Hub this upgrade is a must. And Hambantota doesn't currently have all the infrastructure facilities needed to service a Huge Port.

But still doesn't India's canal project affect Colombo? Perhaps not yet but when its complete- although i do see your point, if the expansion gives Colombo an excellence in quality reputation and good hub status (better than the one currently held) shipping lines may just want to stick with Colombo. (We need to avoid Port strikes and the like which were we faced a couple months ago).

However development of Hambantotta is still a must- Just incase Colombo does loose its competative edge/strategic value as a result of the Indian canal project. But i still think spending that $1.2 billion on Hambantotta is a better investment :)

Also with regards to the Colombo Port expansion projct, is it really nesccessary? [[ India's Sethumsumu-whatever canal thing is in fact designed to put Sri Lanka (specially Colombo) out of business in terms of strategic location ect (althought SL does have a chance of being the hub for the region- which i hope the current government will fulfil)-India's canal project has huge environmental repercussions for SL too in addition to the economic ones, yet those Indians repeatedly denied the SL government access to the documentation which details every aspect of the project. Damn Indians -Government that is- they have done enough to ruin SL over the years and still treat us badly. Arggh, sorry for spewing that out not exactly good for first post- i won't say anymore about this.]]

Wouldn't it make more sense to spend the $1.2 Billion on the Hambanotta port? Which has for more potential that Colombo? Canal project or no canal project one the of the worlds busiest shipping lines only a few km's away and that won't change.

First of all wellcome to the forum !! :)

About the Sethusamuthiram Canal Project, it is not designed to put Colombo port out of business. It is desgined to enhance easier routes between the east and west coast of India and to increase the efficiency of Tuticorin port on the Indian cost. I am sure there could be environmental issues affecting Sri Lanka but in the long run I simply cannot see this project being held forever sighting this reason. Agreed, it doesn't do any good to Colmobo port but I don't see it having any drastic effect on Colombo port aswell. Colombo still will serve as great shipping entry to Sri Lanka, especially the western regions of Sri Lanka. One advantage this project might have is the opening of the second route to Kankesanthurai port from Colombo. With this canal Sri Lankan will have a second plan to reach KKS and the Jaffna peninsula ( who knows even regular passenger ships ) rather than the Trinco route which is the only option now.

The Hambantota port is a must agreed, but I don't think it is big enough to be the feeding mouth to Sri Lankan trade. To me it would be better if Sri Lanka can operate three international ports, on the three coasts, Colombo, Hambantota and Trinco. To bring in more trade and opportunity to the different regions.

I agree but hambantota should be able to handle 3 mio. TEU's per annum otherwise it'll loose its strenght. Trinco is a superb port but the security situation has to better in order to fulfill trade benchmarks...

I would say development of Colombo port is very necessary. It's the port for the capital city of the country afterall and currently a hub port for South Asia.

First of all wellcome to the forum !! :)

About the Sethusamuthiram Canal Project, it is not designed to put Colombo port out of business. It is desgined to enhance easier routes between the east and west coast of India and to increase the efficiency of Tuticorin port on the Indian cost. I am sure there could be environmental issues affecting Sri Lanka but in the long run I simply cannot see this project being held forever sighting this reason. Agreed, it doesn't do any good to Colmobo port but I don't see it having any drastic effect on Colombo port aswell. Colombo still will serve as great shipping entry to Sri Lanka, especially the western regions of Sri Lanka. One advantage this project might have is the opening of the second route to Kankesanthurai port from Colombo. With this canal Sri Lankan will have a second plan to reach KKS and the Jaffna peninsula ( who knows even regular passenger ships ) rather than the Trinco route which is the only option now.

The Hambantota port is a must agreed, but I don't think it is big enough to be the feeding mouth to Sri Lankan trade. To me it would be better if Sri Lanka can operate three international ports, on the three coasts, Colombo, Hambantota and Trinco. To bring in more trade and opportunity to the different regions.

^^ I think you have convinced me.

And i would like to say hello to everyone here!!! Should have done that first! :bash: :)

However after all if the President wasnt from H'tota district that area would not get an airport, seaport and a expresswaz link...

bt one thing said...the new colombo port is gonna b a killer!!! luks sooo nice!!!!

Ok right thats a fact and the sheer size, exclusive feature for Lankan Trade...

bt one thing said...the new colombo port is gonna b a killer!!! luks sooo nice!!!!


I hope a lot of $$$ will be generated from this in the long run.
:D

Yeah, obviously...

Another pic...

http://www.standardnewspapers.lk/WES2006-12-24/images/6906.jpg

Itz, huge man...

If this really happened, it will be great! Hope politics will not interfere with the plans and the progress....

I think port and aviation project will be done because they are more easy to build than massive highways or roads through difficult terrain...

Whats happening to the Colombo-Airport express way? is it still on-hold?

well ya sadly, not heard of any great progress...

Whats happening to the Colombo-Airport express way? is it still on-hold?

The last I heard the Chinese contract was canceled and some other country was awarded the contract (IIRC) and its U/C

The last I heard the Chinese contract was canceled and some other country was awarded the contract (IIRC) and its U/C

http://skyscrapercity.com/showpost.php?p=10617012&postcount=17

According to the above article its the France and construction will begin soon.

yeah but it has been U/C for years, for my it's more like on hold.

Sri Lanka Ports Authority takes over land to build Hambanthota harbour

Monday, January 8, 2007, 3:17 GMT, ColomboPage News Desk, Sri Lanka.

Jan 08, Colombo: Sri Lanka Ports Authority (SLPA) has already taken over 1100 hectares of land from Hambanthota, Karagamlevaya area to build the Hambanthota harbour. SLPA hopes to compensate and remove the 450 families currently residing in the land with the hope of beginning the construction work in March.

In the preliminary stage that is expected to be concluded by 2009, the technical harbour will have 670 metres jetty that can handle two ships. SLPA bears the cost of the phase one of the project which will cost $ 310 million.

Building a harbour in Hambanthota close to the main shipping line in southeast of Sri Lanka that is passed by around 300 ships a day, is a long time development dream of Sri Lanka.

The government of Sri Lanka has planned to set up the first commercial harbour build after the independence in 1948 in Hambanthota with a 11 kilometre jetty that can handle 30 big ships. The project that is to be concluded within 16 years will cost more than $ 6 billion. Sri Lanka has sought a loan from China to construct the harbour.

http://www.colombopage.com/archive_07/January831730SL.html

Wow $ 6 Billion

Yeah, very fricking huge :)

Hope they find oil around Hambantota.... would be a good bonus :)

hehe, oil i hope that the Hambanthota district develops a lot by the Harbour, the Weerawila Int. Airport and the proposed expressway extension to Hambanthota... good prospects.

Sri Lanka government has been taking out huge loans for these projects, hopefully they can repay them. history has not been good to debtor nations.

yeah, but they cant just halt all good projects for lack of funding...

Other countries should invest in Sri lanka

Other countries should invest in Sri lanka

ok... LOL!

I however agree that SL should promote investment and try to get as many investors as possible.

Nov 12, Colombo: Sri Lanka government says that Foreign direct investment (FDI) increased rapidly within the first six months of this year.

The Board of Investment (BOI) has approved 332 projects within this period. The investment expected through these projects is over Rs. 300 billion.($3bil):banana:

United Nations Conference on Trade and Development (UNCTAD) World Investment Report stated that fixed capital formation increased by 6.2% in 2007 as a percentage of gross fixed capital formation and by 10.9% as a percentage of gross domestic product.

Colombo page (http://www.colombopage.com/archive_07/November1240151SL.html)

I would love to really, physically see all this Investment...

Fri, 23 November 2007 21:46:37
LBO >> Transport
Opening Up
23 November 2007 11:08:09
Sri Lanka urged by top shipping line to liberalise


Nov 23, 2007 (LBO) – Maersk, the world's biggest shipping line and Colombo port's top customer, advised Sri Lanka to further liberalise the sector for the island to become a logistics hub.


"Colombo has the potential to capture regional business but needs regulatory reform and simplified customs and other procedures," Maersk Lanka managing director, Eric Maard said.

Being able to connect to global markets is fast becoming a key aspect of a country's ability to compete and grow, provide employment and reduce poverty, he told a seminar on Sri Lanka's prospects of becoming a logistics hub for the region.

It was organised by the Asian Development Bank, the Freight Forwarders’ Association and the Academy for International Trade and Transport.

"For those countries not able to connect, the cost of exclusion is large and growing," Maard said.

Colombo port needs to urgently expand capacity, improve productivity and ship turnaround times, cut red tape and make doing business easier and quicker.

If not it risks losing its competitiveness and losing shipping business to other competing hub ports that were cheaper and more efficient, Maard said.

He pointed to the key strengths of Singapore, one of Colombo main competitors, saying these include good infrastructure and connectivity, a fully liberalised and deregulated environment, and a critical mass of logistic professionals.

"We need to bring the business to Colombo because otherwise we can't become a hub," Maard said, adding that Singapore's strengths were almost a mirror image of Colombo's weaknesses.

A hub port's geographical location was becoming less important, he noted, because of the growing importance of communications and web-based ways of doing business.

Sri Lanka needs to attract all aspects of business that make a maritime and logistics hub.

These include a wide range of services from banking and insurance, to crewing, ship management and chartering.

Sri Lankan shippers today enjoy good connections to their markets and comparatively lower freight rates because of the deregulation achieved more than 10 years ago.

"It was the partial liberalisation of shipping in the early 1990s that created the basis for Colombo becoming a hub for the south Asian region," Maard said.

"If freight rates were controlled, none of this would have happened."

He warned that government efforts to control the way shipping lines do business and interfere with market mechanisms like pricing would only serve to make the island less attractive for shipping lines.

"This does not mean I want a completely open society or to throw out ethics and good governance."

Maard said he supported the idea of Sri Lanka having a strong regulatory body attached to a dedicated shipping ministry.

"It should be a US and European style body, not one that interferes with pricing."


Maard said Colombo does have a great opportunity to become a strong logistics hub provided it acted fast to remove existing constraints.



http://www.lankabusinessonline.com/fullstory.php?newsID=2055549104&no_view=1&SEARCH_TERM=7

Very correct , I hope MR will take his hands off the businesses & let em to do it :)

The Aitken Spence conglomerate is awaiting Cabinet approval to construct the proposed container terminal in the Colombo South port.

The company seems to be the highest bidder to build and operate the new container terminal.

Deputy Chairman and CEO Aitken Spence J. M. S. Brito told the Daily News the company bid for the project in alliance/joint venture with Port of Singapore Authority (PSA Corp) which runs the Port in Singapore. This is the highest bid in the list which amounts to US $ 183 million.

According to Brito, 70 per cent is owned by Aitken Spence and the balance 30 per cent is owned by PSA Corp in this joint venture to build the port.

He said the bid bond to build the breakwater system in the Colombo South Port is expected to finish early December. Two companies, Hyundai and China Harbour and once they complete the project they could commence work.

Brito said this is a mega project which has a capacity of 2.4 million TEUs that would help to accommodate the massive container traffic without a problem by 2010.

He said that this is an urgent requirement for Sri Lanka to expedite this project, if not the container traffic will be grabbed by other emerging ports in the region by 2010.

The existing two container terminals will not be able to cope with the increasing traffic demand in the future, he said.

Sri Lanka Ports Authority officials said Aitken Spence/PSA consortium and an independent bid by Hutchison Port Holdings (HPH) appeared to be the front-runners.

In addition, Hayleys and Carson Cumberbatch in alliance with the CMA-CGM shipping line and John Keells Holdings had also bid in partnership with South Asia Gateway Terminals which runs Colombo port's privatised container terminal.

SLPA Officials said a detailed analysis of the bids was required before identifying the winner as the amount of profit it would generate for the port would have to be calculated.

Port officials said earlier that cash flow generation would be a key factor in evaluating the bids as the profit from the first terminal in the new South Port of Colombo is required to fund other port sector projects.

DN (http://www.dailynews.lk/2007/11/27/bus01.asp)

Interesting...