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

http://www.lbo.lk/newsimages/Colombo%20Port%20Expansion%20Project%20Model.jpg

http://www.dailynews.lk/2006/12/19/z_new350.jpg

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.

"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.

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.lbo.lk/fullstory.php?newsID=2029092296&no_view=1&SEARCH_TERM=7

Why don't you merge this thread with the Colombo Port Mega Hub of South Asia one...

Source - http://www.slpa.lk/expansionproject/index.asp

You can find all the info in the site but I'll post some extracts, since I found the site to be very..ugly.


Intro

The Port of Colombo has been rated as the No. 1 Port in South Asia, the 37th amongst the container ports of the world by the Containerisation International Yearbook 2005.

The increase in world container traffic combined with a substantial rise in the economies of the Indian sub continent over the next two decades generates a continued and expanding demand for container transshipment services at Colombo.

At current levels of growth, the existing port facilities will reach capacity by 2010. Therefore in order to maintain the Port’s status as a key regional hub for maritime services, the Government of Sri Lanka and the SLPA are embarking on a major expansion of the Port of Colombo.

Under this project a new outer deepwater harbour enclosed by new breakwaters to cater for the next generation of ships will be constructed by the SLPA through funding from the Asian Development Bank (ADB). The planned development will take place under the port expansion project adjacent to the current Port of Colombo. The construction of the basic infrastructure will be followed by the construction of three terminals in stages, as the traffic increases. The first state-of-the-art terminal will be constructed as public/private enterprise on BOT basis.


The Current Port and its Terminals

The Port of Colombo is located in an artificial harbour formed by three breakwaters, constructed more than a century ago. The port basin covers 200 hectares and is dredged to depths of up to 15 meters. Access to the harbour is provided on the western and northern sides. The entire perimeter of the harbour is occupied with berths, terminals and vessel related activities. The Port is connected to the national rail network; however, virtually all cargo movements in and out of the port are by road transport.

http://www.slpa.lk/expansionproject/images/n1.jpg

Three container terminals at which the majority of container traffic is handled as follows:

1.Jaya Container Terminal (JCT)
2.Unity Container Terminal (UCT)
3.South Asia Gateway Terminal (SAGT)


2005 Total (TEU million ) - 2.46
Average Growth rate % - 9.8%
Transhipment - 70%, Domestic - 30%


Future Container Traffic

* The level of domestic container traffic is projected to rise by 9.5% annually to 2010 and accounts for approximately 30% of the total container traffic with transhipment providing the balance.

* The total container traffic at Indian ports is expected to grow at a rate of 12% per annum in the next few years; this will taper off to 9% in 2010 and 7% after 2015. This forecast is based on “export growth predicted by authoritative forecasting bodies” and marginal additional container penetration. The growth rates may be considered conservative since they are below growth over the last 5 years, which averaged 14% per annum and India still handles less than 5 million TEU, while China, with a similar population, handles over 40 million TEU.

* The transhipment share of total ISC traffic is forecast to decline from 45% to 33% by 2008 as India receives more direct calls. This assessment has been developed on a port by port basis having regard to base load and the influence of cabotage on Indian port operations. Although some ports may receive 100% direct calls the continuing emergence of other small ports ensures a future market for transhipment.

* The dominant position once enjoyed by Colombo is facing increasing regional competition. However on the basis that premier league levels of productivity will be offered, the institutional framework of the Sri Lankan port sector is modernized and the port operators are able to negotiate tariffs without external control, a revival of Colombo’s share of regional transhipment traffic is expected, with an increase from a 23% share in 2002 to just over 30% by 2015.

Development Plan


The layout of the proposed Colombo Port Expansion Project (CPEP) has been designed to accommodate vessels with an overall length of 400m, beam of 55m and draft of 16m.

The harbour will be served by a new two-way channel with a depth of 20m and a width of 570m.

The new breakwaters in the initial phase will enclose a basin area of 285 ha which will support three new terminals each with a quay length of 1200m and a land area of 58 ha.

The basin will be dredged to –18m with provision to deepen it to -21m should a new generation of deep drafted vessels come on line. There is also provision to extend the breakwater under a second phase to provide area for a fourth Terminal.

http://www.slpa.lk/expansionproject/images/Container_traffic_map.jpg

http://www.slpa.lk/expansionproject/images/verticle_traffic.jpg

The initial development costs for infrastructure comprising the construction cost of the breakwater, channel, land, access, utilities, small boat harbour and navigation aids is estimated to be in the region of US $ 320m. The cost of the first terminal comprising quay wall, yard reclamation and surfacing, buildings, power and services as well as terminal equipment is estimated to be about US $ 300m.

http://www.slpa.lk/expansionproject/images/n3.jpg

Nice, detailed plan for the exact use and proportion/layout of the expansion...

Have they started building this?

bidding completion is schedule for 03rd April 2007, so i presume any progress would be made after that!

President’s China visit to expedite Hambantota port project

Channa KASTURISINGHE

COLOMBO: President Mahinda Rajapaksa’s forthcoming visit to China would ensure the speedy implementation of the long awaited Hambantota Port development project.

Treasury Secretary Dr. P.B Jayasundera told the media that the President’s visit next week will secure the required technical and financial assistance for the proposed project which is expected to be completed in 2011.

It has two main components - the breakwater project and the industrial port and bunkering facility.

“The commercial contract between the Sri Lanka Ports Authority and the relevant Chinese institutions have been finalised and hopefully the contracts would be signed during the President’s visit,” Dr. Jayasundera said.

continued : http://www.dailynews.lk/2007/02/24/news02.asp

Sri Lanka bunker facility in three years time

07 Mar 2007, 08:39 GMT

The construction of Sri Lanka's Hambantota port project, which includes a $87million bunkering terminal, is expected to last about three years, sources familiar with the project said.

The development of the whole Hambantota port project, including the bunkering terminal, costs approximately $312 million.

The bunkering terminal, which can allow the berthing of vessels up to 100,000 deadweight tonnes (dwt), is expected to deliver 500,000 metric tonnes (mt) of oil products each year.

Sri Lanka had earlier signed an agreement with China to jointly develop the Hambantota district, which includes setting up a harbour, tank farm and bunkering system.

China will provide assistance in the form of technical support and financial aid for the project.

Phase 1 of the project, apart from building the bunkering terminal, also includes the construction of a sea port to handle 80,000-100,000 dwt general cargo vessels.

The Chinese government has nominated a contractor who will be forwarding a proposal to the Sri Lanka Ports Authority (SLPA) for evaluation.

Phase 2 of the project will involve dredging and increasing the harbour basin and construction of additional berths and yards for conventional/container cargo operations. Commencement of Phase 2 is around 2012.

Sri Lanka-based bunker players told Bunkerworld that the new bunkering facility could boost the local bunker market due to the strategic location of Hambantota at the east coast of the country.

Hambantota is also located close to key international shipping routes and is considered an ideal location for bunkering operations, a bunker player said.

Observers believe the Hambantota port project could be significant to China's interest in enhancing its influence in the Indian Ocean.

http://www.portworld.com/news/2007/03/67178

Good news, can bunkering bring in foreign exchang eor is it just for oil bunkering...

Plans to develop a major bunkering terminal in the south of Sri Lanka could bring down marine fuel prices in other ports in the country.

"We don't see this development as eating into the Colombo market," a local player told Bunkerworld. He predicted it could even benefit the port.

Sri Lanka has an agreement with China to develop a bunker terminal at Hambantota, near the southern tip of the island.

The aim is to provide a bunkering point for passing international traffic, and the plans call for a terminal and tank farm that could deliver up to 500,000 metric tonnes (mt) of oil products a year.

"It's been on the cards for quite some time, but it is definitely gaining momentum," a source told Bunkeworld on Friday. China and Sri Lanka reiterated support for the project this week.

Sri Lanka imports all its bunker product, one the principal factors that makes the market regionally uncompetitive.

The source said that if the Hambantota proposals went ahead, there would be enough storage capacity to import product more economically.

"Colombo suppliers could transship material from Hambantota," he said.

He suggested it was unlikely the terminal would damage demand in Colombo as its market was for vessels already working cargoes in the port.

Sources said it was still not decided who would supply bunkers at Hambantota, although they predicted that there would "a lot of interest" if it was put to tender.

Reports this week the Hambantota port and bunker terminal project would take about three years to build. It is not clear when work is likely to start.

Prices for 380 centistoke (CST) bunker fuel in Colombo today were $370 per metric tonne (mt), over $70 above Singapore.
http://www.portworld.com/news/2007/03/67211

we really have to challenge SIngapore as a COUNTRY using the Colombo port and its expansion and the new Hambanthota port to steal and attract new business away from Singapore...

Hambantota Port project: Signing today

Monday, March 12, 2007

By Yohan Perera

The much hyped Hambantota Port project will be launched today with the signing of an agreement between the Sri Lanka Port Authority and two Chinese companies at Temple Trees today.

It is estimated to cost Rs 360 million and more than 85% of it is expected to come from China in the form of aid.

The Chinese government had agreed to provide funds promptly after discussions it had with President Mahinda Rajapaksa during his recent visit to China.

Work of the project is expected to begin before July this year.

http://www.dailymirror.lk/2007/03/12/front/3.asp

These people always mix-up with rupee & Dollar!

Well, at least that elevates the state of the Rupee in the eyes of the international viewers :lol:

http://i19.tinypic.com/3y48eap.jpg
http://i15.tinypic.com/2saihz5.jpg
http://i18.tinypic.com/345hhg3.jpg

The Signing agreement of Hambanthota Development port project at Temple Trees on 12th Morning between SriLanka port Authority China Harbour engineering.Mr.Saliya Wickremesooriya Chairman Port Authority, vice Chairman R.M.P.G.Wickreme and Dr.Hu
Jianhua President of China Harbour engeneering co.LTD are signing agreement.Minister Dr.Sarath Amunugama,Minister Mahinda Amaraweera,Minister Mahindananda Aluthgamage,Mrs.Nirupama Rajapksa MP,Presidents Secretary Mr.Lalith Weeratunga,Finance Sec.Dr.P.B.Jayasundara and officials are also in the picture

http://www.news.lk/index.php?option=com_content&task=view&id=1949&Itemid=49

good stuff...hope this project endures no major hiccups on the way, what about the Colombo Harbour who will finance it and has a tender gone out yet?

Tenders are out now and the contractor will be call out on July for the constructions!
http://www.slpa.lk/Tendr.htm

Is this something different to the Colombo port expansion in this thread?


http://www.lankabusinessonline.com/images/logo.gif

Sri Lanka accepts John Keells Holdings mega sea reclamation plan

March 15 (LBO) - Sri Lanka has accepted a proposal to reclaim the sea and develop 450 acres of land alongside the Colombo Port by John Keels Holdings (JKH), a senior minister said.

"In the committee headed by the president we approved a very important and a flagship project to add 450 acres to the land space in Colombo," Investment Promotion Minister Sarath Amunugama told reporters Thursday. "We should be signing the agreement next week."

He says the first phase alone is likely to cost about 500 million dollars and will be built in over several years as it had happened in countries like Singapore and also in India.

JKH with P&O ports already operates a container terminal at Colombo port.

A port expansion known as the Colombo South Port project is already underway. The proposed reclamation project extends around the new South Port.

Amunugama says he wants to boost Sri Lanka's annual foreign direct investment (FDI) flows close to four billion US dollars from last year's 500 million US dollars.

A special 'Mega Projects' promotion unit has been set up at the Board of Investment of Sri Lanka to fast track the largest projects.

Amunugama says several large projects are in the pipeline including an 800 million US dollar mass rapid transit system for Colombo and several ventures connected to Hambantota industrial port at the southern tip of the island.

This includes a refinery by Star Petroleum of Dubai costing around a billion dollars. Amunugama says a Dubai firm has also asked to setup a sugar refinery at Hambantota.

The 450 million dollar Hambantota industrial port is to be built by two Chinese construction firms, China Harbor Engineering Company Limited and Syno Hydro Corporation with Chinese government funding.

http://www.lankabusinessonline.com/fullstory.php?newsID=1806545374&no_view=1&SEARCH_TERM=4

what will this new area be called, Keells Island Colombo 16...haha.

What they gonna do in their? Terminal or real estate! May be something like a palm tree, ohh i forgot it would be mihin island wouldn't it! Anyway good on them!

link,
http://i19.tinypic.com/2vhuexy.jpg
http://www.lankadeepa.com/2007/03/16/front_news/01.html

........................................................................................................................................

By the way, I dnt understand why JHK want to reclaim the sea area when they are able expand the city to inbound suburbs!

Ocean Front Property near The central business area and entertainment areas ? I think this project has a lot of potential. With the Port nearby, this could be a New CBD as well,

Entertainment area? How do u know that, it gonna be awesome if it comes true! This project might be comparable to the one in Dubai!

Entertainment area? How do u know that, it gonna be awesome if it comes true! This project might be comparable to the one in Dubai!

I meant the project is going to be located near the entertainment areas of Colombo, I too am wondering what is going to be built on this.

COLOMBO: The contract agreement of the consultancy service for the Port of Galle Development project was signed between the Sri Lanka Ports Authority and M/s Pacific Consultants International on Thursday.

The agreement was signed between Saliya Wickramasuriya, Chairman, Sri Lanka Ports Authority and N. Endo, Director (Assist to President Project Execution) of Pacific Consultants International.

This project is to develop the Port of Galle as a regional port by constructing new deeper multi-purpose berths for longer ships and meet future demand and to relocate part of the Break-Bulk cargo handling from the Port of Colombo.

It will also help ease the channel congestion in the Port of Colombo by transferring part of the break bulk activities to Galle and thus contributing towards enhancing container handling activities in the Port of Colombo.

This will upgrade the Port of Galle that will ensure to handle future generation of cargo vessels, world class passenger ships and cruise ships and also provide facilities to handle car carriers to foster transshipment car activities.

The project includes construction of breakwater (1150m length), a multi-purpose terminal having two berths, dredging of approach channel and the turning basin and procurement equipment and a fully integrated computer system.

The development of two 14m deep multi-purpose berths adjacent to and outside the existing harbour is envisaged with the conversation of existing port to a yacht marina linking the Galle heritage city with a boardwalk for tourism development.
http://www.dailynews.lk/2007/03/17/news36.asp http://i17.tinypic.com/359wuwl.jpg

COLOMBO: The contract agreement of the consultancy service for the Port of Galle Development project was signed between the Sri Lanka Ports Authority and M/s Pacific Consultants International on Thursday.

The agreement was signed between Saliya Wickramasuriya, Chairman, Sri Lanka Ports Authority and N. Endo, Director (Assist to President Project Execution) of Pacific Consultants International.

This project is to develop the Port of Galle as a regional port by constructing new deeper multi-purpose berths for longer ships and meet future demand and to relocate part of the Break-Bulk cargo handling from the Port of Colombo.

It will also help ease the channel congestion in the Port of Colombo by transferring part of the break bulk activities to Galle and thus contributing towards enhancing container handling activities in the Port of Colombo.

This will upgrade the Port of Galle that will ensure to handle future generation of cargo vessels, world class passenger ships and cruise ships and also provide facilities to handle car carriers to foster transshipment car activities.

The project includes construction of breakwater (1150m length), a multi-purpose terminal having two berths, dredging of approach channel and the turning basin and procurement equipment and a fully integrated computer system.

The development of two 14m deep multi-purpose berths adjacent to and outside the existing harbour is envisaged with the conversation of existing port to a yacht marina linking the Galle heritage city with a boardwalk for tourism development.
http://www.dailynews.lk/2007/03/17/news36.asp
http://i17.tinypic.com/359wuwl.jpg

nice render and project hope this gets implemented...

President Mahinda Rajapakse Friday saw a presentation on a landmark Port City project involving reclaiming approximately 459 acres of ocean near the Colombo harbour to be undertaken by the John Keells Holdings conglomerate and the Sri Lanka Ports Authority on a 45-45 joint venture for which the green light has been given according to Enterprise Development and Investment Promotion Minister Sarath Amunugama.

The presentation was made to the Cabinet Sub-Committee on BOI Investment which the President chairs by a JKH team pushing the project estimated to cost US $ 480 million. The Sri Lanka Ports Authority will get 45% of the new project`s equity with no cash infusion while JKH, contributing 45% cash will take identical equity.

The balance 10% is to be contributed by an institutional investor such as a multilateral lender or a global infrastructure fund from whom the required debt for the project would also be obtained, according to sources close to Amunugama.

The minister broke the news of the impending project at the BOI at the inauguration of its Mega Investment Division to handle investments of $ 50 million and over expected to have a knock-on effect of bringing other major investment into the country.

The publication of the minister`s speech saw the Colombo Stock Exchange seeking clarification from JKH which said they have made a proposal but received formal approval.
Although the Cabinet Sub-Committee had given its nod, Cabinet approval itself has not yet been obtained although the company has been told that it will be received in a matter days ? possibly later this week.

The project involves the reclamation of the area adjacent to the new South Harbour breakwater to create what has been described as a ``purpose built Port City`` through a special purpose vehicle to be established with JKH and the SLPA being the major stake holders in this partnership between the public and private sectors.

The SLPA which will not be putting any cash to this project as was partly the case of the JKH-led South Asia Gateway Terminal, a highly profitable venture, in which the SLPA has a 15% equity stake (7.5% was paid for and the other 7.5% was free) and a board seat. A senior minister said that SAGT, now operating at 80% above designed capacity, is three times as productive as the State-owned and operated parts of the port.
``If not for them, we would have been left far behind on port operations,`` he said.

The new Port City would have the benefit of creating a well defined Special Economic Zone catering exclusively to global and regional players in the financial services industry. This could provide an impetus to developing Sri Lanka, given its geographical proximity to India, as a financial services hub for South Asia, according to sources connected to the project.

JKH is expected to enter into a management agreement with the special purpose vehicle for the phased development and management of the project including land reclamation and real estate development.

JKH raised a massive Rs. 13 billion equity funds in end February already part-applied to reduce its debt. But it is expected to need cash in the short-term for the forthcoming mega-project.
The conglomerate is also very interested in the South Harbour project.
http://www.lankanewspapers.com/news/2007/3/13171.html
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This is gonna be awesome, New financial hub!

Cabinet Approval is needed ? Well, at least it will be given in a week.. This certainly is interesting, looking forward for further info,

what is this going to be, a large 459 acre industrial park in Colombo...

It's gonna be a new financial hub plus real estate developments!

http://i18.tinypic.com/2zyfuz5.jpg
John Keells Holdings (JKH) said Monday it was officially informed by the government that a letter of intent (LOI) would be issued on a private public partnership to reclaim land around the Colombo port.
"We have received notification today that the Cabinet Sub-committee on Investment Facilitation (CSIF) has approved the issuance of a Letter of Intent (LOI) in favour of John Keells Holdings Limited (JKH) in connection with a proposal submitted by JKH to the Government of Sri Lanka," John Keells Holdings Chairmna Susanthe Ratnayake said in a statement.

"The proposal envisages the reclamation and development of approximately 459 acres of land adjacent to the proposed Colombo South Harbour in a Public - Private Partnership."

The firm said another announcement would be made after the letter of intent is issued.

Investment Promotions Minister Sarath Amunugama reporters last week the government had accepted a proposal by JKH to reclaim and develop the sea around the proposed Colombo south harbour.

However at the time top officials of the company said they had not been officially informed by the government, that their proposal had been accepted.

Minister Amunugama said the first phase of the reclamation would cost around 500 million dollars.

Media reports later said the project would be structured as a 45/45 joint venture with the Colombo Port and 10 percent would be reserved for foreign funding agencies.

www.lankabusinessonline.com

Good news but it seems like a magnifzing investment for JKH but it will create investor confidence and will help the group expand into new sectors and other core businesses...

I heard that they are eying for the 7th mobile license! I think that is too much country like SL!

What they gonna do in their? Terminal or real estate! May be something like a palm tree, ohh i forgot it would be mihin island wouldn't it! Anyway good on them!


LOL! Yes, good to see this kind of development taking place!

The Asian Development Bank has approved a 300 million dollar loan to expand the Colombo Port, the regional lender said Tuesday.

The funds will come from its 'ordinary capital resources' window at a rate based on the London Interbank offered rate, the bank said.

The loan, will have a 25-year pay back period and will include a 5-year grace period, and will be given to the Sri Lanka Ports Authority.

“Colombo Port is a natural transshipment hub for South Asia,” said Prodyut Dutt, a Senior Transport Specialist with ADB’s South Asia Department said in a statement.

“In recent years, Colombo Port has lost market share in transshipment because it does not have the operating capacity or depth required to berth the latest generation container ships.”

The Colombo South Port expansion project is to be implemented as a public-private partnership with the Ports Authority building a breakwater and carrying out dredging.

The private sector will develop and operate the container terminals which will be built sequentially.

"The Project will also help establish a new marine operations center, relocate an underwater oil pipeline and provide navigational aids," ADB said.

The expansion is expected to increase Colombo's container-handling capacity from 3.3 million 20-foot containers in 2006 to 5.7 million by 2010 and 10.5 million at the end of the project.

By 2024 ADB says foreign investments to the port will exceed 800 million US dollars.

"Under the current conflict situation, security measures have been highlighted and incorporated into the project," ADB said.

"The project will promote Sri Lanka’s overall economic growth by improving its international competitiveness with lower transport costs and faster delivery times."

In a related development the Sri Lanka government last week announced that it had accepted a proposal from John Keells Holdings to reclaim 450 acres of land lying to the west and south of the new harbour expansion project.

John Keells which already operates a container terminal at the port with P & O, is also expected to bid for an additional terminal concession.
http://www.lankabusinessonline.com/fullstory.php?newsID=1442757572&no_view=1&SEARCH_TERM=4
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So altogether SLPA got $500 haven't they? that's a lot for dragging & break water! JHK also eying on every thing including Suntel possible take over!

Only for Dredging and Break Water ? I think the by expansion it mean all -

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

I thought that money for Break water & dredging coz the terminals will be developed wit public private partnerships! so SLPA doesn't need to spend money on that as other developers involving that case!

Wow this unbelievable such development projects jumping out everywhere.

Great news for SL/Colombo.

Hopefully JKH will become a multinational company like the big shot companies in the West and Japan, oh and LG. Will JKH be sticking up a tower one day to show their corprate success? hehe

Do they have a HQ somewhere?

They already have operations in INDIA & MALDIVES, Head quotes is located in Colombo, they also have land mark high rises although they were embarked as condos!

There HQ covers a large area of land but it is low-rise maximum 3 or 4 storeys...

thanks forthe infor guys

http://i9.tinypic.com/2z7514x.jpg

Hambantota port Inauguration is due on may 31, SLPA is also going to build a 15 story administration building at the premise hoping to uplift it as the world biggest port from overall operations!\


http://www.lankadeepa.com/Sunday_Lankadeepa/2 5032007/front/09.html

Sri Lanka’s Dockyard in talks with Croatian shipbuilders


March 30, 2007 (LBO) – Colombo Dockyard Ltd. (CDL) is having talks with Croatian investors on setting up ship building facilities in Sri Lanka, a government minister said.

Investment promotion minister Sarath Amunugama said negotiations on the Croatian investments had taken place between officials of the two countries last week.

Croatia is one of the world’s top six ship building nations but its yards have been struggling in recent years because of rising costs and have required state aid.

The talks were being held with CDL, a subsidiary of Japan’s Onomichi Dockyard Co., Amunugama said, adding that the location for the proposed ship yard would be in Hambantota where a new port is to be built.

China has agreed to fund up to 85 percent of the Hambantota port which will be built by a Chinese consortium consisting of China Harbour Engineering Company and Sino Hydro Corporation. Construction work is expected to start in three months.

The government wants to start the port project with a bunker terminal and make it an industrial port and later build container terminals for transshipment cargo.

CDL has said its marketing efforts were winning more orders but lack of space in the Colombo port was holding back expansion.

It has considered Trincomalee but decided against going there because of the uncertain security situation there.

Shipbuilding is an important sector of the Croatian economy, accounting for about 15 percent of exports, and is also a leading force in European shipbuilding.

Shipbuilding has moved away from Europe because of high costs, mainly of labour, and has shifted to Asia, hence the interest in Sri Lanka.

Former East European yards like in Croatia are also losing their competitiveness as their economies get integrated into the European Union.

Croatia has also expressed willingness to invest in the ship-building sector in Iran recently because of its cheap workforce.

http://lbo.lk/fullstory.php?newsID=2...SEARCH_TERM=13

Nice, Hope this works out. CDL is on fire these days :banana:

Good one, hope it's gonna go ahead with investor, H.tota scheduled to be started by 31of may!:)

Colombo Dockyard Limited (CDL) succeeds in securing order for construction of two numbers 250 passenger capacity ships for the Government of India.

The significance of the award is that, this is the first time in the history of local shipbuilding industry that a Sri Lankan organisation (in this case CDL) has been awarded a shipbuilding project by the government of India. This is the first Ocean going passenger vessel construction to be undertaken by CDL.

Since its inception in 1974 CDL has managed to prove its capabilities by building Tug boats, fast crafts, anchor handling tugs to meet owner’s (Local and foreign) requirements and international classification society standards.

Utilising the engineering talents of the local engineers and workers, these locally built vessels for foreign and local clients have managed to secure a name for Sri Lanka as a versatile shipbuilding nation. In monitory terms this order is also the largest shipbuilding order and the highest value contract CDL has ever secured at US $ 36.6 million during span of over three decades of operations.

This unique award signifies entry of CDL into the lucrative passenger vessel market, the successful performance in the local and international shipbuilding arena has paved the way for CDL to enter into this new segment.

In addition, this award also marks a significant strength to CDL’s future Shipbuilding Business Strategy, as a potential Passenger Vessel builder, synergising our expertise and competencies in Aluminium Shipbuilding.

Union Territories of Lakshadweep, Nicobar and Andaman Islands in India and all other SAARC Countries requiring vessels for Passenger Transportation, CDL would definitely be in a position to acquire more orders in the future. CDL was formed in 1974 with the main objective of carrying out ship repair and shipbuilding activities in Sri Lanka.

In a span of 33 years the CDL has achieved a status of one of the most dynamic and comprehensive shipbuilding and ship repair yards in the South Asia region, with a satisfied customer base from all around the world. CDL operates in joint collaboration with Onomichi Dockyard Co. Ltd. Japan since 1993.

The Passenger vessel will be of 89.00 meters overall length and has the capacity to accommodate 250 passengers and cargo 100 tons.
http://www.dailynews.lk/2007/04/06/fin02.asp

So CDL got its first Passenger Vessel Contract ! Now get a contract to build a bloody Titanic :) That would be awesome :banana:

As BOI minister stated, we need a shipbuilding factory to lure large-scale contacts, cargo vessels would be awesome coz contracts soar up to billions. :cheers:

Yeah, we can be like South Korea :cucumber

New Sri Lanka port project attracts keen private sector interest


April 09, 2007 (LBO) – The Sri Lanka Ports Authority (SLPA) is having a pre-bid meeting Tuesday with private investors keen on building container terminals in Colombo’s new south port whose infrastructure work has attracted interest from 30 investor consortia, an official said.

SLPA chairman Saliya Wickramasooriya said Monday the original date for opening bids for the infrastructure work on the new port was initially extended to April 24, but now has been further extended to May 8 in light of some recent amendments to the request for proposals.

“Thirty parties have picked up documents, and the clarifications have run to over 200,” he told LBO. “Most capable local and global players are represented in both bids.”

The new port project, known as the Colombo Port Expansion Project, is required to ensure Colombo remains competitive and retains its status as south Asia’s trans-shipment hub by catering to big, new deep-draft container ships now being deployed on the East-West trade route across the Indian Ocean.

The Asian Development Bank recently signed an agreement with the SLPA to lend 300 million dollars for the breakwater and dredging.

Under the deal, the agency wants the first two terminals in the new port, for which bidding is separate, to be built by the private sector.

Asked about possibilities of the SLPA or Jaya Container Terminal taking a management or equity stake in the new South Port container terminals, Wickramasooriya said the SLPA has a right to buy up to 15 percent of the equity of the winning consortium/management company.

Bids to design, build, finance, manage, operate and transfer a container terminal in the new port were called on February 23 and the SLPA is having a pre-bid meeting with interested parties on Tuesday.

“Twenty parties picked up the documents and all are expected to attend,” Wickramasooriya said.

The construction Colombo Port Expansion Project, located to the west of the existing harbour, has been designed to accommodate vessels with an overall length of 400 metres, beam of 55 metres and draft of 16 metres.

The new breakwaters in the initial phase will enclose a basin area of 285 hectares which will support three new terminals each with a quay length of 1200 metres.

The harbour basin will be dredged to a depth of 18 metres with provision to deepen it to 21 metres if a new generation of deep draft vessels are built.

Good one^^

Colombo: Sri Lanka Ports Authority sources said the construction of the Hambanthota harbour would be started next month.

The government has decided to grant reasonable compensation to the owners of the property that are to be taken over for the harbour. However it is reported that the majority of the 1100 hectare of land needed for the construction is government land.

The government has also pledged 20 perches of land in a newly built town for the people who would lose land and be guaranteed jobs once construction begins.

http://www.colombopage.com/archive_07/April960120SL.html

Finally, a mega project of the ground...

Now if they only gave out regular updates and photos of the construction process to the public, like that Airport under construction in India (Can't remember the name).

I think you mean Hyderabad or Bangalore...

Port project: The construction of phase one of the Hambantota Port Development Project will commence in June this year. Land allocation for the project has already been done.

The investment for the first phase would be US$450 million and the contract agreements for this were signed between the Consortium of China Harbour Engineering Company Limited and Syno Hydro Corporation Limited of People’s Republic of China and the Sri Lanka Ports Authority (SLPA) recently.

The project once completed, would generate 6,000 direct and 50,000 indirect employment opportunities locally. An industrial port with a 1,000m jetty and an oil refinery estimated to cost US$1 billion will be constructed at Hambantota under first phase. There would also be a power generation plant and a free trade zone.

Hambantota Port Development Project consists of four stages. The whole project is expected to be completed within 15 years.
http://www.dailynews.lk/2007/04/13/fin01.asp

hmm thats really good news...hope the port can really become competitive!!
i heard there might be an oil refinery somewhere near the port?? o is that an offshore plant??? guys have any info..

It is linked to the port itself if im not mistaken...

It will be developed by Star energy Dubai, the deal signed back in 2006 & they were given 2 years to commence the project, more over they also inquired about a sugar refinery to develop in the same area @ a cost of $1bil!

wow!!!!

http://i16.tinypic.com/42n5q9t.jpg
For the first time in Sri Lanka, a project to manufacture concrete blocks with the super-strength level required for yard construction sites in port construction projects has been established.

The Sri Lanka Ports Authority has established a high tech plant in the Hambantota district with a complete state of the art system made available for this purpose.

Concrete blocks manufactured at this plant will be utilised for the construction work for the Hambantota Port Development Project. As per the estimates, the Project requires approximately 4-5 million concrete blocks and the machine allocated for the project has the capacity to produce 5,000-6,000 blocks per day.

Producing the concrete blocks required for this new project within the country undoubtedly saves a great deal of foreign exchange which would have been spent if the blocks were to be imported. Furthermore, the project will generate a large number of new employment opportunities for the local community.
http://www.boi.lk/boi2005/view.asp?NewsID=3178&CatID=1

http://i11.tinypic.com/4g6xy52.jpg
For the first time in Sri Lanka, a project to manufacture concrete blocks with the super-strength level required for yard construction sites in port construction projects has been established.

The Sri Lanka Ports Authority has established a high tech plant in the Hambantota district with a complete state of the art system made available for this purpose.

Concrete blocks manufactured at this plant will be utilised for the construction work for the Hambantota Port Development Project. As per the estimates, the Project requires approximately 4-5 million concrete blocks and the machine allocated for the project has the capacity to produce 5,000-6,000 blocks per day.

Producing the concrete blocks required for this new project within the country undoubtedly saves a great deal of foreign exchange which would have been spent if the blocks were to be imported. Furthermore, the project will generate a large number of new employment opportunities for the local community.
http://www.boi.lk/boi2005/view.asp?NewsID=3178&CatID=1

Good news, when they say established does it mean they already have the facility and can start production instantly?

No, currently they are setting up the facility as port due to commence in first week of June!

aha, I see... this will provide good employment for the area...

http://i12.tinypic.com/35ckdwy.gifHundreds of vehicles made in India parked at the yard
of Colombo port prior to transhipment to several parts of the world
..................................................
Port of Colombo has gained high recognition during the first three months of this year in transshipment of vehicles manufactured in India, to other countries.


The Port is being used as the transshipment hub for vehicles manufactured in Maruti and Tata companies in India which are exported to South Africa, Ghana, Italy, Spain, Turkey, Malta and Alexandria.


Vehicles carried in small vessels from Mumbai in India are unloaded at the Port of Colombo and transhipped to other countries in huge vehicle carrier vessels.


In 2006, Colombo Port and India have transshipped 3018 vehicles. From January 1 to April 14 this year, there had been 2357 vehciles transshipped. Recently another 886 number of vehicles and 117 numbers of vehicles were transshipped via the vehicle carriers, "Bellong" and "Sagaterious Leader".


The security and efficient services offered by the Sri Lanka Ports Authority in transshipment of vehicles have also gained higher recognition of relevant agent institutions involved in vehicle transshipments enabling an increasing number of vehicle transshipments at the Port. Hence it has also contributed towards the growth of revenues of the Sri Lanka Ports Authority.
http://www.dailymirror.lk/2007/04/23/ft/6.asp

Good and interesting news...

Heh, As long as they aren't unloaded on to our roads, its all good (no offense to those car owners). BTW Any updates on the South Port Expansion ?

Sri Lanka President Mahinda Rajapaksa will ceremonially commence the construction of the Hambanthota harbor in his home district in the deep south of the country on 31st of May, Sri Lanka Harbour Development Authority sources said.
Chinese government is to assist the construction by providing 85% of the investment through credit facilities. The harbor is to be constructed so as to facilitate even the huge vessels that transport over 50,000 metric tones of cargo.
The President is also to initiate the work of developing Hambanthota as a China – Sri Lanka friendship town parallel to the construction of the harbor

http://www.colombopage.com/archive_07/April23144757SL.html

http://i11.tinypic.com/4g6xy52.jpg
For the first time in Sri Lanka, a project to manufacture concrete blocks with the super-strength level required for yard construction sites in port construction projects has been established.

The Sri Lanka Ports Authority has established a high tech plant in the Hambantota district with a complete state of the art system made available for this purpose.

Concrete blocks manufactured at this plant will be utilised for the construction work for the Hambantota Port Development Project. As per the estimates, the Project requires approximately 4-5 million concrete blocks and the machine allocated for the project has the capacity to produce 5,000-6,000 blocks per day.

Producing the concrete blocks required for this new project within the country undoubtedly saves a great deal of foreign exchange which would have been spent if the blocks were to be imported. Furthermore, the project will generate a large number of new employment opportunities for the local community.
http://www.boi.lk/boi2005/view.asp?NewsID=3178&CatID=1


Whats the pic of? the Block builiding thing?

I guess so... isn't it Saraprobe...

That’s just an illustration of a port building; those blocks need to be super-strength in order bear thousands of tons!:)

Naveen Dissanayake, Minister of Investment Promotion stated that preliminary works relating to the establishment of Investment Promotion Zone (IPZ) in the Special Economic Zone (SEZ) in Trincomalee will be expedited.


He mentioned this at a progress review meeting held on May 15 at his office with the participation of the Chairman of Board of Investment of Sri Lanka (BOI), Dhammika Perera and the Chairman Sri Lanka Ports Authority (SLPA), Saliya Wickramasuriya.


The Chairman of the SLPA mentioned that he would consider releasing of 1600 acres of land owned by SLPA on a 50 year lease to the BOI to establish the IPZ. It has been planned to complete the survey work now being carried out by end of June.


The studies have already been commenced by the BOI with regard to provision of water demand of 25,000 cubic meter per day for new industries. The required water demand will be met from the Mahaweli river and other water resources without tapping the Kantale tank. It is estimated that the power required for this proposed zone would be around 60 mw. The initial requirement of 10 mw is presently available. The studies have now been commenced to identify ways and means of augmenting the balance demand.


The potential of Ashroff Jetty in Trincomalee will be utilized to export and import the productions generated from the IPZ from the proposed Sampur Jetty also could be utilized for transportation of future industrial products.


The Central Environmental Authority has commenced already the Strategic Environmental Study on Trincomalee development activities. Mr L.D. Dickman, Deputy Director General (Infrastructure) of BOI, Mr Sunil de Silva, Executive Director of BOI and other officials of the SLPA also participated at this meeting.
http://www.dailymirror.lk/2007/05/19/ft/6.asp

Good news, but will there be enough to attract companies especially foreign ones to set-up in the area... Wouldn't there be safety and power concerns...

NEW PORT: The construction of the Hambantota Port, one of the biggest development projects to be undertaken by the Government, would commence next week with President Mahinda Rajapaksa laying the foundation stone.

A Chinese consortium comprising China Harbour Engineering Company Ltd and Sino Hydro Corporation Ltd would be in charge of constructing of the Hambantota harbour.

Under the first phase of the project, an industrial port with a 1,000m jetty and an oil refinery estimated to cost US$1 billion will be constructed at Hambantota.

The proposed port will stimulate development of harbour-related industries such as ship repairs, ship building, bunkering, break bulk, power generation and a free trade zone.

The entire cost of the Hambantota Port Development and related development would cost US $ 450 million. There was an additional agreement to fund the new oil refinery costing US $ 1 billion.

CEO Hambantota District Chamber (HDCC) Azmi Thassim said the development of the new port would help in the economic uplift of the Matara, Ratnapura and Moneragala districts and part of the Eastern Province.

The construction of the new port when completed will directly provide 6000 new jobs and 50,000 to 100,000 jobs as indirect employment.

A large number of these openings were for skilled workers who were lacking in this area. Therefore, steps were being taken to train people in the required skills at special vocational training centres and the GTZ and the Chamber are playing a major role in this regard.

In addition a Korean government assisted international convention centre would be built.

http://www.dailynews.lk/2007/05/24/fin04.asp

The Sri Lanka Ports Authority (SLPA) is to start construction work on the planned new deep-water port in Hambantota on the island's south coast in the first week of June, officials said.

The first phase of the project is to be completed in three years and three months, SLPA vice chairman R M P B Wickrema told a news conference Thursday.
The SLPA has already signed a contract with a Chinese company while China is giving a loan to help fund the project.

The new Hambantota port is to be built inland, in the Karagan Levaya lagoon, avoiding the need to build expensive breakwaters.

A lot of the design work has been done by Sri Lankan experts.

The first stage of the project - two small breakwaters and two cargo terminals, one for containers and the other for oil and gas - would cost 360 million dollars.

By way of comparison, the breakwater for the new South Port next to Colombo would cost some 400 million dollars, Wickrema said.

The government plans to acquire 1,115 hectares of land in Hambantota for the project, which would displace 450 families who would be paid compensation.

The planned Hambantota port is being designed to have a draft of 16 metres in the first stage, compared with 15.5 metres in Colombo.

It would eventually be deepened to 17 metres and allow it to handle the biggest ships afloat.

The planned port would eventually have 11 kilometres of berths and be capable of handling 20 million containers, compared with 4 kilometres of berths in Colombo and a capacity of 4 million containers a year.

Also planned in the port complex are a gas-fired power plant and a petroleum storage complex and bunkering facility.

A ship building and repair yard is part of the new port's design, to meet booming demand for new vessels with all the world's shipyards having full order books for next few years.

Wickrema said the government decided to locate the port in Hambantota because of its proximity to the shipping lane – being just six nautical miles from the main East-West trade route across the Indian Ocean.

The relatively dry weather in the region is an added advantage as ports are required to operate round-the-clock.

A new port is also needed because Colombo lacks room to expand and is congested as well as from a security point of view, Wickrema said.

"Today Colombo is the only port capable of handling containerised cargo and if anything happens that affects Colombo's operations our import-export trade would be crippled."

Wickrema also said there appears to be forces at work that opposed the new Hambantota port.


He noted that, given the port's location, it could pose a threat to some of the region's established hub ports.

http://www.lankabusinessonline.com/fullstory.php?newsID=1713022042&no_view=1&SEARCH_TERM=7

http://i13.tinypic.com/52ykhmw.jpg

The construction work of the Hambanthota Port began today (07), bringing in to reality yet another pledge in ‘Mahinda Chinthana’ - President Mahinda Rajapaksa’s policy draft.

Attending the ceremony, Prime Minister Rathnasiri Wickramanayake stated that the present Government is taking every possible measure to secure the countries’ sovereignty and it is able to implement this kind of massive development projects while preoccupied in the task of protecting the security of the nation.

He added that the inauguration of the Hambanthota Port Development project marks a new page in the history of Sri Lanka’s development projects and he was glad to be a part of it.

Prime Minister extended his gratitude to the Minister of Ports and Aviation Chamal Rajapaksa and the people of Hambanthota for their cooperation in bringing this project up to this point and invited them to make use of the vast opportunities created through the construction of the Hambanthota Port with a fine understanding and awareness.

Addressing the event Minister of Ports and Aviation Chamal Rajapaksa stressed that the construction of the Hambanthota Port is a huge commercial strategy, not a political strategy of the Government using to achieve any kind favours. He further pointed out that this step would help in taking the country further in the development path.

He added that the new port is being built in the most appropriate location and it was Sri Lanka’s ancient port situated in the midst of the silk route.

He stressed that this development project is undertaken to upgrade the living standards of the Sri Lankan citizen and not Rajapaksa Brothers, hence it is a port of the patriotic sons of Sri Lanka.

Hambanthota Port, which is the first ever inner harbour of the country, six times larger than the Colombo harbour after completion, will contribute largely to boost the country’s economical growth.

The estimated expenditure over the project is US$ 528 million and the final investment expected could be as high as US$ 4 billion. The port will cover a total land area of 2,000 hectares.

The Port consists of two terminals; one for traditional cargo and the other for fuel and gas will accommodate all types of vessels as the harbour will be 16 meters in depth.

Subsequent to the inauguration of Port activities the southern part of the country will acquire a rapid economical growth. Commencing of the Port would bringing more foreign exchange to the country by means of additional income source such as with employment potential in shipping, tourism and other related fields.

The Government has acquired 1,115 hectares for the first stage and around 450 families who will be displaced have consented to part with their lands. Arrangements have been made to pay compensation for the displaced.

By the year 2010 the project will be completed and the operations will commence soon after that. The funds will be granted by Sri Lanka Port Authority and the Chinese Government.
http://i19.tinypic.com/6430zn7.jpg
http://i15.tinypic.com/5xyoeh1.jpg
http://i16.tinypic.com/53eog1x.jpg
http://i19.tinypic.com/53zaxza.jpg
www.news.lk

really nice to see a sensible mega- project get of the ground. It will contribute immensely to development in sri lanka especially in the south...

The Last picture is interesting ! Wonder How that strip will turn out to be in 3-4 years. Are we gonna upgrade the Galle Port too ? and we really need to secure Trinco !

Wickrema also said there appears to be forces at work that opposed the new Hambantota port.


He noted that, given the port's location, it could pose a threat to some of the region's established hub ports.

http://www.lankabusinessonline.com/fullstory.php?newsID=1713022042&no_view=1&SEARCH_TERM=7

Smart guy... :D

Anyway thats all the more reason to build the port.

I hope the government presses ahead with the project whatever happens.

This is something that CAN NOT be stopped for whatever reason.

Those pictures worry me.

Seeme auwfully tight for those ships, can they manovuer? heres to hoping it just a poor model :D

Smart guy... :D

Anyway thats all the more reason to build the port.

I hope the government presses ahead with the project whatever happens.

This is something that CAN NOT be stopped for whatever reason.

very correct!

I totally agree, this port is essential for the Sri Lankan economy and the development of large areas out of the western province...

China-Lanka deals on slow gear

China-Lanka deals on slow gear
Who antagonized Lanka’s friend-in-need?
By Rohan Abeywardene

The People’s Republic of China, which has since its formation in 1949 has been a true ‘friend in need’ of Sri Lanka with ever generous assistance, has in recent months been distancing itself from us and withholding some vital credit lines. The reason: commission vultures are demanding kickbacks from these projects, according to knowledgeable sources.

Among the crucial projects, to which China had earlier pledged generous credit lines and even outright grants, but is now dragging its feet over, are modern cultural centre –a gift from China -- to be built at former Nomads’ Grounds, the 900mw Norochcholai coal power plant, and the Hambantota port project.

When we broached this allegation about unscrupulous elements here demanding commissions with the Chinese embassy in Colombo, a spokesman simply said “no comment,” but stressed that “We provide assistance without any pre-conditions to help Sri Lanka to develop its economy and to raise the living standards of its people”.


The proposed site of the Hambantotal harbour project
The embassy official also insisted that it was all Government-to-Government assistance.

When pointed out there has been undue delays in going ahead with the above projects, he said that was because discussions were still going on.
There may have also been a grave blunder on the part of this government to question China as to whether it had supplied weapons to the LTTE, based on questionable intelligence probably planted on us just to sour relations between the two countries. It must be noted that China was one of the less than a handful of countries that supplied us arms, when virtually the entire West refused to sell arms to Sri Lanka, especially after the race riots of 1983. The Chinese were so conscious about our plight that they never troubled us to immediately settle payments for those arms.

Another well informed Chinese working in Sri Lanka said it was impossible for the Tigers to get arms from China, but if they had got, it would have been from a third party.

Even at Thursday’s ceremony to launch the Hanbantota port project, observers said a notable absentee was the Chinese ambassador to Sri Lanka and in his place China was represented by its Charge’ d’Affaires. Chinese sources said, however that the ambassador was not present as he was away in China on holiday.

On May 31, Ports and Aviation Minister Chamal Rajapaksa when asked about the several postponements of the launch of the harbour project, told The Sunday Times that they were going ahead with the launch with Ports Authority funds, pending the approval of the US$ 360 million credit line from the Import and Export Bank of China.

Sri Lanka reeling from some of the highest electricity tariffs in the world, largely due to alleged mismanagement and corruption in the Ceylon Electricity Board, the sole power monopoly in the country, and impending blackouts got an extremely generous lifeline when China agreed to fund the entire US$ 455 million coal power project. Even the loan agreement for the project was signed in September 2006 between Treasury Secretary Dr P.B. Jayasundera and Assistant General Manager of the Import and Export Bank of China. But to date the money has not been disbursed for the contractor, the China National Machinery and Equipment Import and Export Corporation, to begin work on the project. Pending the disbursement of funds the contractor has maintained a small office at the site with a skeleton staff.

In the meantime, to be fair by the CEB, it must be said that it has kept much of its side of the bargain by resettling some 74 affected families on extremely generous terms in a new housing scheme replete with all facilities. Even the new 12 kilometre road from Palavi Junction to the project site has reached the half way mark, power sector sources said. They said even the Environmental Impact Assessment has been revalidated as required by law and the surveying for the routing of the transmission lines too is being carried out.

Power and Energy Minister W.D.J. Seneviratne on Friday, however, maintained that all matters had been cleared last week and the money should be disbursed within the next two to three weeks to begin work.

Other sources said so far there were no signs of the arrival of hundreds of Chinese experts and construction workers as envisaged to begin the work.

The Norochcholai coal power plant is an indispensable project, which was to be implemented in three phases of 300 mw each. The first was due to go into operation in 2010 while the second and third in 2011 and 2012. They are also expected to bring down electricity tariffs by 13 per cent with the completion of the first phase and by 22 per cent and 32 percent by the completion of others. Experts have warmed that Lankans were now paying highest tariffs in the world, barring those of only Singapore, as the country depends on hastily set up thermal power plants for more than 60 percent of its electricity needs. And many of those power purchase agreements were entered into under highly questionable circumstances.

http://www.sundaytimes.lk/070610/News/news26.html


Please tell me this is some crap from ST?

The reason: commission vultures are demanding kickbacks from these projects, according to knowledgeable sources.

Its the truth, I can tell from second hand experiences (someone i closely know, had to work with such ministers and officials in some ministries and he said it was really disheartening to see people stooping so low, espcially the so called "representatives of the people" and the "servants of the people")

No wonder people hate politicians aka desha-paluwos. We need pre 1980 leaders to rebuild this country

The reason: commission vultures are demanding kickbacks from these projects, according to knowledgeable sources.

Its the truth, I can tell from second hand experiences (someone i closely know, had to work with such ministers and officials in some ministries and he said it was really disheartening to see people stooping so low, espcially the so called "representatives of the people" and the "servants of the people")

No wonder people hate politicians aka desha-paluwos. We need pre 1980 leaders to rebuild this country

:ohno: I hope this will go ahead, Hence our credit rating also not too good:)

LBO >> Transport
Box Bonanza
18 June 2007 14:31:34
India trade boom boosts Sri Lanka transhipment traffic


June 18, 2007 (LBO) – South Asia Gateway Terminals (SAGT), Colombo Port's privatised container facility, aims to handle 1.6 million containers by the end of this year, as India's bulging trade volumes increase the flow of cargo through the harbour.


SAGT's new chief executive, Steven Edkins, believes Colombo will retain its status as South Asia's transhipment hub despite the expansion and recent cuts in tariffs in Indian ports and direct calls there by shipping lines.

Beyond Capacity

In May 2007, SAGT container throughput, measured in Twenty Foot Equivalent Units (TEUs) increased 9.1 percent year-on-year to 118,602.

"Demand is largely from the Indian sub-continent," Edkins, who has over 30 years experience in ports and container shipping having worked previously for P&O, said in an interview.

"We're aiming to improve berth use that'll allow us to accommodate the increasing number of customers."

SAGT handled 1.3 million containers in 2006, much higher than the one million boxes it was originally designed for.

Container volumes at Colombo increased by 26 percent in the first quarter of this year, with more than three-quarters being transhipped.

SAGT has bid for the first container terminal in the new South Port, along with its equity holder John Keells Holdings in partnership with the holding company of Malaysia’s Westport.

New Terminal

The terminal bids also attracted interest from conglomerate Hayleys in partnership with Carson Cumberbatch, the CMA-CGM shipping line and the Asian Development Bank's private sector arm.

The ADB is also funding most of the infrastructure work on the new port.

Other bids for the container terminal have come from Port of Singapore Authority in partnership with conglomerate Aitken Spence, and sole bids from Hutchison Port Holdings, the big terminal operator in Hong Kong, and Hanjin Shipping.

SAGT operates round-the-clock, with none of the usual breaks for even May Day, or for meals, and has introduced performance-backed incentives for dockers and changed operational procedures to enhance terminal capacity.

Tissa Wickramasinghe, SAGT's General Manager – Marketing, said they expect transhipment to go up to 80 percent of Colombo's total throughput by end-2007 from the present mix of 76 percent transhipment and 24 percent domestic cargo.

Maersk, the world's biggest shipping line, is Colombo's biggest customer moving some 750,000 TEUs a year, through both SAGT and the state-owned Jaya Container Terminal.

SAGT's other main customers include big lines like MSC and APL.

All the top 10 major shipping lines and alliances in the world are calling Colombo.

Emirates Shipping recently started a service through SAGT and a joint service by APL, MOL and Hyundai is set to start in June.

Regional Presence

Despite its strategic location, Colombo handles less than a quarter of the Indian sub-continent's transhipment volumes.

And with an increasing number of shipping lines making direct calls to Indian ports, Colombo's transhipment traffic is not growing at the same pace as the growth in Indian cargo.

Colombo is considered ideal for services to Europe and the US east coast.

But for Far East cargo from the Indian sub-continent, Singapore is a better located transhipment port, so large volumes go there. Much cargo for the Middle East goes via Salalah in Oman.

India has embarked on a major ports modernisation drive and its main ports have slashed charges to woo international shipping lines to transport its booming cargo volumes.

However, Edkins sees no threat to Colombo's transhipment business by the increasing number of direct calls to Indian ports, nor by India's port expansion and reduced charges.

The direct calls by shipping lines to Indian ports are not enough to cope with Indian cargo volume growth, he noted.

Natural Bounty

Indian ports can handle only smaller size ships compared with the bigger, deep-draft mainline vessels Colombo handles.

With the building of the new South Port, Colombo will be able to accommodate even bigger ships now being deployed on trade routes or in the design stage.

"The key issue is the turnaround times for cargo ships," Wickramasinghe said, pointing out that Colombo, unlike most Indian ports, is not subject to tidal changes.

"This means there's no waiting time for ships for the tide to come in and go out, which adds to their costs.


"So we're confident that if we keep on delivering good productivity levels and also build the South Port without delay, we can retain the transhipment business."

good, more to come

With Indian ports developing fast its dangerous for CMB/Sri Lanka.

I just hope the Colombo Southern port project and the Hambantotta port will proceed full spead ahead.

http://i8.tinypic.com/6f8kgo6.jpghttp://i17.tinypic.com/6ex8xo5.jpg
Colombo Dockyard Ltd. (CDL), Sri Lanka's sole listed ship builder, has got more orders from a new Indian customer to build anchor-handling tugs, a top official said.
The total value of all four orders from the Indian firm, Greatship (India) Ltd. is 65.5 million dollars, Chief Executive Mangala Yapa told the launch ceremony of the first tug Friday.

The orders would ensure a steady revenue stream in the next 2-3 years.

The yard, is already building two tugs for the customer, Greatship (India) Ltd., a unit of the Great Eastern Shipping Company, which provides services to India's growing offshore oil and gas industry.

"We have got a repeat order for two anchor handling tugs from Greatship," Yapa said.

The order for the second two boats was signed at Friday's ceremony with Greatship managing director Ravi Sheth.

The two boats in the new contract, worth 35.5 million US dollars, are to be delivered in 2009. Keel laying for the first of these tugs is scheduled for December this year and the second in February next year.

Yapa said the tug launched on Friday was the biggest vessel built by the yard and also the first time a vessel was built in the dock.

Previous vessels had been smaller and built and launched from the yard's slipway.

The tugs are meant to supply offshore oil rigs with crew and provisions, handle rig anchor laying and also rig towing.

Greatship India now had orders to build vessels with yards in Norway, Singapore and Sri Lanka, Yapa said.

CDL has built a range of tug boats for both local and foreign customers. It has been building and maintaining tugs for the Sri Lanka Ports Authority in Colombo and other ports in the island.

The yard has just completed delivery of the third and last tug for A. A. Turki Corporation of Saudi Arabia.

CDL is a subsidiary of the Onomichi Dockyard Co. of Japan, which provides management and technical expertise to the yard.

The yard's profits have been growing in recent quarters because of a good order book, for both repair work and new buildings.

Colombo Dockyard reported a 50 percent increase in net profit for the first quarter ending March 31, 2007, largely owing to repair work.

Net profit rose to 200 million rupees in 1 Q2007 from 133.6 million rupees in the same period last year while consolidated revenue increased to 1.98 billion rupees from 1.71 billion rupees.

http://www.lankabusinessonline.com/fullstory.php?newsID=777102930&no_view=1&SEARCH_TERM=17
................................
They should build a yard in H'tota in order to expand their operations.

Way to go CDL...

A ship building yard is also being built as part of the first or second phase of the Hanbantotta port project.

Is the South Harbour project for Colomob also having a yard?

Any new news on these two projects? Really does suck in SL, no news updates on large or small construction projects...if the people were better informed about whats going to happen and what is happening their may be less objection..

A ship building yard is also being built as part of the first or second phase of the Hanbantotta port project.

Is the South Harbour project for Colomob also having a yard?

Any new news on these two projects? Really does suck in SL, no news updates on large or small construction projects...if the people were better informed about whats going to happen and what is happening their may be less objection..

I heard that Chinese funding in the slow gear for these project, Gov has to go for private partnership otherwise they gonna hit the rock bottom of Fitch rating due to high borrowing cost!:nuts:

Private might not be so bad, maybe JKH maybe interested?

LBO >> Transport
Own Fleet
28 June 2007 12:46:40
Sri Lanka national line to buy cargo ship


June 28 (LBO) – Sri Lanka's national shipping line has shelved plans to acquire a tanker for crude oil imports and is going ahead with the purchase of a cargo vessel to supply the northern Jaffna peninsula, an official said


Ceylon Shipping Corporation (CSC) officials said a cargo ship is the more urgent requirement because of the need to ship food, medicine and other provisions to Jaffna which can only be supplied by sea and air.

More vessels are required to maintain a regular flow of goods to Jaffna and prevent shortages such as that caused last year when the resumption of hostilities with the Tamil Tiger suddenly closed the road to Jaffna.

The CSC, which has turned around in recent years after more than a decade of losses, will use its own funds as well as that provided by the government and through loans to buy the ship.

The government has actually approved the purchase of up to three vessels by the CSC with the strategic aim of building up the national fleet.

"A second-hand cargo vessel would cost around 3-4 million dollars. We can invest part of the money and borrow the rest," a CSC official said.

The corporation was holding talks with banks as well as with other ministries like the Ministry of Nation Building and Development to raise the funds.

CSC officials said the importance of a national fleet would be particularly felt at times of crisis when other shipping lines might not be available.

The corporation's finances were now healthy after a long period of being in the red because of political interference and bad decision making.

The CSC's earlier plans to build up a national fleet were also affected by changes in the shipping industry such as deregulation and mergers which made it difficult to compete against better endowed commercial lines.

The corporation also had plans earlier this year to buy an oil tanker to ship crude oil from Iran and other Gulf origins for the Ceylon Petroleum Corporation (CPC).

Iran’s Ministry of Transport had even agreed to a special long-term credit line to finance the purchase of a vessel.

The requirement was for a vessel that can carry 95,000-100,000 tonnes of crude oil.

But the plan has been shelved because of uncertainties about the CPC's oil imports.


CSC officials said they need to clinch a long-term supply contract with the CPC in order to go ahead with the purchase of a tanker.

LBO >> Services
Shipping Squeeze
28 June 2007 11:58:07
By Mel Gunasekera
Sri Lanka exporters squeezed as shipping lines drop Colombo


June 28, 2007 (AFP) - Sri Lankan exporters are being squeezed as fewer container ships heading west call into Colombo, with global shipping lines moving more business to India and its booming economy.


Shipping costs have soared nearly 600 dollars for a standard 20-foot container (TEU) over the past six months as a result, compounding problems for Sri Lankan exporters who compete on price, innovation and time with their large northern neighbour.

"Some of the bigger shipping lines have changed their schedules over the past six months and the crisis is affecting exports of garments, tea, rubber and coir (coconut fibre)," said Sri Lanka Shipper's Council chairman Jayanath Perera.

Clothing, which accounts for more than half of the island's near seven billion dollar export trade, is especially feeling the heat as exporters face tight deadlines from buyers such as Victoria's Secret, Gap, Nike and Marks and Spencer.

"The next alternative is to airlift shipments but that costs 75 percent more than sea freight. Air freight is not an option for a price sensitive industry like ours," said shipping consultant Rohan Masakorale. Masakorale, also a senior member of the clothing industry's Joint Apparel Association Forum, said Colombo port is now fighting to retain its status as South Asia's transshipment hub and to stem the flow of ships to India.

India has embarked on a major modernisation drive of its main ports, slashing charges to attract more international shippers to carry its booming cargo volumes.

Colombo's port, which straddles the Indian Ocean trade from the Strait of Malacca into the Arabian Sea and then onto the Suez Canal, had been considered ideal for ships making the voyage from Asia to Europe and the US east coast.

But big shipping lines such as Maersk, the United Arab Shipping Company, Norasia Container, K-line and Hanjin now bypass Colombo and call directly at Indian ports like Mumbai.

"Earlier, these ships called on Colombo to pick up Indian cargo and then carry it to Europe. There is a shortage now of around 600 TEUs of cargo space each week out of Colombo," said Perera.

"In some instances, the rate increases are very high and when taken in context of reduced flexibility and capacity, it is potentially very damaging," said Dilhan Fernando, director at Dilmah, one of Sri Lanka's big tea exporters.

Inefficiencies at the 125-year-old Colombo port and enhanced security measures to prevent Tamil Tiger rebels from damaging the main harbour may also have contributed to the shipping lines' decision, said Perera.

"The entrance to the Colombo port is now partially closed at night to prevent terrorist attacks. Only one ship can come in and go out at a time, causing congestion and unwanted delays," Perera said.

Despite the constraints, the port's volumes rose 26 percent in the first quarter of this year, with more than three-quarters of the cargo being trans-shipped.

However, less than one quarter of the Indian sub-continent's cargo now sails through Colombo and that is a problem.

"India is expecting 18 percent growth in cargo volumes to Europe within the next four years. It could be more. My fear is that we will not be able to capitalise on that growth," said Perera.

Over the longer term, a proposed south port in Colombo is expected to be operational after 2011, while the government this month initiated another port at southern Hambantota, closer to the main international shipping lanes.

Both projects have been delayed for over a decade because of poor government policy and analysts fear that further delays could see Colombo lose its hub status.

For the new Colombo South Harbour project i hope the contract goes to SAGT and whoever they have a partnership with.

The race to build Sri Lanka’s newest and most competitive terminal as part of the South Harbour project in the Colombo Port has begun, with five of the best of corporate names locally and in the global shipping arena officially confirming their interest with detailed plans and information.

The bid called for by Sri Lanka's Ministry of Ports and Aviation is for a three berth terminal to handle around 2.4 million twenty-foot equivalent units (TEUs) per year. Construction costs have been estimated at more than $500 million.

In the fray are, current operator of the Queen Elizabeth Quay in Colombo port, John Keells Holdings PLC-South Asia Gateway Terminals (JKH-SAGT) in partnership with Pembinan Ridzai Berhad, the owners of Westports Malaysia Sdn Bhd, financial giants Hayleys Limited and holdings company Carson Cumberbatch & Company Limited in partnership with French shipper CMA CGM Group's port arm Terminal Link, Singapore's PSA International Pte. Ltd., partnering logistics conglomerate Aitken Spence Shipping Ltd., Hong Kong's Hutchison Port Holdings (HPH) and Hanjin Shipping with its local agents Navigation Maritime.

Interestingly, one of these five bidders, the Hong Kong-based Chinese company Hutchison Port Holdings (HPH), was barred by India last year, from participating in a project to build a container port in Mumbai, citing security concerns, states an Associated Press report published in the International Herald Tribune of 30th August 2006. According to this report, HPH was the only candidate out of 10 that was barred, with security clearance being denied.

It is believed that the presence of an Indian naval base near the Mumbai Port as the reason for denial of permission to HPH, controlled by the Hong Kong tycoon Li Ka-shing, who has strong ties with Beijing.

Reportedly, this is also not the first time that Hutchison has faced security concerns related to its port operations overseas. Conservatives in the U.S. Congress are supposed to have warned against allowing the company to expand its interests in Panama, accusing it of being an agent for China and posing a long-term strategic risk to American interests in the Panama Canal.

Over the years Sino-Indian relations have undergone times of both war and peace, with both competing to be the premier Asian power. The two countries are widely regarded as emerging superpowers in the region.

While world attention is becoming increasingly focused on these Asia's two rising powers' phenomenal economic growth and political clout, how Beijing and New Delhi manage their bilateral relationship will be critical for regional and global peace and prosperity in the years to come.

Chinese President Hu Jintao's visit to India in November 2006, was the first high-level visit in a decade, a decade that has experienced rapid expansion of ties in political, economic and security spheres.

The bilateral relationship has been marked by regular high-level visits, growing cooperation on a range of international and regional issues, and the establishment of a strategic and cooperative partnership for peace and stability.

In July 2006, the two countries reopened the historical Nathu La Pass meaning "Listening Ear" and standing at 15,000ft, which was closed in 1962 after China's brief invasion of its neighbour, to promote border trade further.

Despite progress in bilateral relations over the past few years, mutual suspicions remain, partly due to the dynamics of security dilemma and structural conflicts between the two Asian giants.India has watched China's phenomenal growth in economic and military areas with alarm. Likewise, China is paying close attention to India's growing military power and its nuclear and missile development, as well as the significance and implications of a warming US-India relationship, marked by growing defense ties and the nuclear deal.

Meanwhile, China is increasingly making its presence in the region felt. In March 2007, Pakistan President General Pervez Musharraf formally opened the Gwadar Port in Pakistan's Balochistan province, the country's third port. The Port will be completed with financial and technical assistance from China, which has so far provided 80% of the initial development costs. Once completed, the Gwadar Port will rank among the world's largest deep-sea ports.

With this investment, China takes a giant leap forward in gaining a strategic foothold in the Arabian Sea and the Indian Ocean. Its presence in the Indian Ocean will further increase its strategic influence with major South Asian nations, particularly Bangladesh, Nepal, Pakistan, and Sri Lanka.

The Gwadar Port is said to be part of Chinese naval expansion along the Asian and African coasts called the 'string of pearls' initiative, according to a US Department of Defense report. It entails the maintenance of ports and bases at strategic places in the region.

A presence in Gwadar provides China with a "listening post" where it can "monitor US naval activity in the Persian Gulf, Indian activity in the Arabian Sea and future US-Indian maritime cooperation in the Indian Ocean", states Zia Haider, an analyst at the Washington-based Stimson Center.

A report titled "Energy Futures in Asia" produced by defense contractor Booz Allen Hamilton for the Pentagon notes that China has already set up electronic eavesdropping posts at Gwadar, which are monitoring maritime traffic through the Strait of Hormuz and the Arabian Sea.

China's foothold in the Arabian Sea has understandably set off alarm bells in India. For India, China-Pakistan collaboration at Gwadar and China's presence in the Arabian Sea heightens its feeling of being enveloped by China from all sides. A foothold in the West Port of Malaysia's Pelaboham Kelang Port may also be regarded as yet another strategic move in this regard, adding to India’s woes.

China is steadily extending its reach into South Asia with its growing economic and strategic influence in the region. In keeping with its economic expansion, China has invested wisely, and has deepened its influence in the region, especially with India's immediate neighbours, by skillfully deploying economic incentives to draw Bangladesh, Nepal, Pakistan, and Sri Lanka into its orbit.

Both China and India would ‘like’ Sri Lanka, which conveniently occupies a strategically important heft of the Indian Ocean stretching from the Middle East to Southeast Asia, on ‘their side’. Beijing has longstanding exclusive friendly relations with Colombo, but very much to Beijing’s convenience, the prolonged ethnic conflict in Sri Lanka has strained relations between Colombo and New Delhi, with India having a Tamil-majority state of its own, forcing her to tread cautiously in mediating the conflict. China however, has no such balancing act to perform, and is only too happy to support Sri Lanka's territorial integrity.

China recently dropped anchor at yet another of its ‘pearls’ in the Indian Ocean, with its involvement in the Hambantota Port development project. Although the Chinese role in this project may not be just about influence in Sri Lanka, the fact remains that it brings China's presence close to Indian shores. Besides, with Hambantota, China’s attempts to envelop India has been further consolidated, by lurking in waters too close to home. And now, with the Chinese company Hutchison Port Holdings (HPH) in the final fray to get a foothold in the strategic Port of Colombo, what of India?

http://www.dailymirror.lk/2007/07/02/ft/05.asp
................
Awesome:banana:

Interesting stuff, i just want the terminal to be completed quickly and be off a high standard so that CMB retains its status as one of Asia's or even the World's best and biggest ports...

As long as China actually helps Sri Lanka in anyway unlike our neighbour to the north... I will love China :) So who got the contract for construction ?

Our dear Big Brother on the other side of Palk Straits (you know WHO!) gets upset with Harbour developments in SL, espiecally the Hanbantotta port because as it will ruin things for their ports which have only now hit the map.

Thats why i'm concerned with that Hindustan Company submitting proposals for the Colombo Port Expansion, since they can't be trusted -2d radars anyone?-, most likely they will delay the project and make the whole thing usless. That company is after all owned by their government. SL should slap a "security risk" sticker on them and ban them from the whole project :lol:

Our dear Big Brother on the other side of Palk Straits (you know WHO!) gets upset with Harbour developments in SL, espiecally the Hanbantotta port because as it will ruin things for their ports which have only now hit the map.

Thats why i'm concerned with that Hindustan Company submitting proposals for the Colombo Port Expansion, since they can't be trusted -2d radars anyone?-, most likely they will delay the project and make the whole thing usless. That company is after all owned by their government. SL should slap a "security risk" sticker on them and ban them from the whole project :lol:

I think India did that to Chinese companies with regards to the port expansion in Mumbai...read an article on it somewhere but can't remember where.

HSBC Bank in Sri Lanka is looking to finance two large transport sector projects with private sector involvement which will spawn new opportunities for local and international banks, a top official said.
Three of Sri Lanka's largest conglomerates, John Keells, Hayleys and Aitken Spence have put in bids to build a container terminal at the Colombo port with CMA CGM of France, Westport of Malaysia and the Port of Singapore Authority.

The International Finance Corporation and the Asian Development Bank is already backing bidders. The ADB is also funding the government to build a breakwater.

The first terminal is expected to cost around 400 million dollars. HSBC is eying the lead arranger slot to syndicate debt which is typically more than half the project.

"In addition to financing the main project there are opportunities for banks to get involved in financing working capital and contractors," David Griffiths, head of HSBC in Sri Lanka told LBO.

HSBC has already bagged a deal to lead-arrange financing for a 200 million dollar toll road between Colombo city and the international airport at Katunayake.

The 24 kilometre expressway has had several false starts but Vinci Construction Grands Projects of France is currently having a go at the project which is expected to cost 200 million dollars.

Griffiths say the economics of the airport expressway as a toll road is good.

The privately owned container terminal business in Colombo is already profitable with John Keells Holdings having a big stake in the terminal which was originally operated by P&O Ports. The IFC and ADB helped finance the project with equity and debt.

HSBC has been in Sri Lanka for 125 years and started as a financier of the tea trade. But the bank has now moved into longer term project finance.

HSBC recently syndicated a rupee loan for a fast expanding cellular firm, Mobitel, which is owned by Sri Lanka Telecom, the country's largest fixed access operator.

Griffiths says Sri Lankan banks will have new opportunities to finance contractors and sub-contractors when the port project comes on stream.
http://www.lankabusinessonline.com/fullstory.php?newsID=246567324&no_view=1&SEARCH_TERM=2
............................
Economic credentials & given the fact that we are located in a strategic location..

Aitken Spence, one of Sri Lanka's conglomerates with interests in several areas of the shipping industry, wants to develop a new business in managing ports abroad.
The company already has a deal with South Africa's Durban Port under which is sent 125 skilled Sri Lankans to provide training and port management expertise.

"We're able to export the services of skilled Sri Lankan workers," said Aitken Spence Shipping chairman Parakrama Dissanayake.

This will benefit the island more than its usual export of unskilled labour, particularly housemaids.

The Aitken Spence team in Durban port provides training, skills transfer and helps to improve the operating efficiency of the South African harbour.

The provision of port management expertise to Durban Port, the first time a Sri Lankan company has ventured into port management service outside the island, was part of Aitken Spence's efforts to develop new products and markets.

The company's maritime transport division is seeking more opportunities in port management business in the African region.

The aim is to develop a business in which the company will help run several container ports abroad, Dissanayake said.

The model is similar to that of the Port of Singapore Authority, or PSA Corporation, which runs Singapore, one of the world's main maritime hubs.

PSA now has a network of ports and terminals under its management around the world, making a significant contribution to its bottom line.

In fact, Aitken Spence is partnering the Port of Singapore Authority in submitting a bid for the first container terminal in the planned new deep-draft port next to Colombo, known as the South Port.

"We've put in a very strong bid for the south terminal with PSA Corp, the world's biggest container port operator," said Dissanayake, a former Sri Lanka Ports Authority chairman.

Aitken Spence was keen to get more port management contracts not only in Africa but elsewhere in the region as well, he added.

In Durban Port, according to Dissanayake, Sri Lankan personnel are actually involved in container terminal operations.

"Some of our port operators are doing 30-40 container moves per hour, compared with the 25 moves per hour that is the normal benchmark."

This was possible because of the expertise the personnel had acquired previously in Colombo Port's container terminal operations.

http://www.lankabusinessonline.com/fullstory.php?newsID=1347781965&no_view=1&SEARCH_TERM=10

I think India did that to Chinese companies with regards to the port expansion in Mumbai...read an article on it somewhere but can't remember where.

thats right. Not sure if it is Mumbai though but the Chinese were ousted from a couple of harbour projects sighting security concerns. I wonder what the Chinese terms and conditions are for the Hambantota port project. How much will be in their control ?

thats right. Not sure if it is Mumbai though but the Chinese were ousted from a couple of harbour projects sighting security concerns. I wonder what the Chinese terms and conditions are for the Hambantota port project. How much will be in their control ?

No control for Chinese, just credit from em thats probably why they have defered the credit line!

i must say the sri lankan guys that have been here have done a great job!

i must say the sri lankan guys that have been here have done a great job!
Good to hear buddy:)

http://i10.tinypic.com/4v3ijut.jpg
August 03, 2007 (LBO) – The Sri Lanka Ports Authority (SLPA) is seeking an investor for Colombo's new container terminal who can increase cargo volumes and improve cash flow, a senior official said.

SLPA chairman Saliya Wickramasuriya said the technical bids for the infrastructure work and first box terminal in the new South Port are under evaluation and winners likely to be announced soon.

Four consortia are in the running for the dredging and breakwater construction work and five to build and operate the first container terminal in the new Colombo, all including foreign investors.

"Our primary aim in giving out the first container terminal is to derive the maximum input to the revenue stream in the shortest possible time," Wickramasuriya said in an interview.

"We want a partner who can ramp up business quickly, and who can guarantee a steady revenue stream in the future.

"What we need urgently is expertise, track record and the ability to run mega-terminals and shift large amounts of cargo."

Bids have been called for the first of a potential four terminals in the new port which is designed to handle the biggest ships afloat with a draft of 16 metres and as long as 400 metres.

Wickramasuriya said they would look to maximise cash flow from the first terminal's operations to help fund other projects and refund loans.

"From the first terminal what we really want is cash flow. It will help fund the pay back of loans by the SLPA not only for the new South Port but for the Galle port and for Hambantota ports. They are economic development projects that will give long term benefits but in the initial years of the loan repayment they impose a staggering burden on us."

With the other three container terminals of the planned $1.2 billion deep-water South Port, the SLPA might go in for diversification, for broadening the mix of lines, port operators and local partners.

Wickramasuriya said that by opening bidding through the request for proposals (RFP) to major global players, regardless of their geographical presence or regional operations, it was indicating its interest in discussing the development future of Colombo with any operator that comes in.

He was responding to a question on concerns expressed by sections of the maritime community in the island about the wisdom of allowing the Port of Singapore Authority, a competitor of Colombo port, to bid for the new terminal.

"The government has no policy of excluding those that might be considered competing ports."

Wickramasuriya also said that while the ports authority welcomes the participation of blue chip local companies in these ventures, it had not made it an absolute requirement in the RFP.
LBO (http://www.lbo.lk/fullstory.php?newsID=890480002&no_view=1&SEARCH_TERM=7)

Lets hope the best for all the port projects and that they will be implemented and later operated and used successfully...

Lets hope the best for all the port projects and that they will be implemented and later operated and used successfully...

Yep, lets keep our fingers crossed:)

http://i10.tinypic.com/4v3ijut.jpg
August 06, 2007 (LBO) – Colombo port's state-owned container terminal plans to add more berths for feeder vessels in an effort to improve productivity and reduce congestion caused by growing cargo flows and tighter security.

The Sri Lanka Ports Authority (SLPA) will introduce four new feeder berths for the smaller container vessels that call at the harbour from ports in the region from where cargo is transshipped through Colombo.

SLPA chairman Saliya Wickramasuriya said in an interview they were working on ways to handle the congestion and cater to increasing amounts of cargo until the planned new mega-port, the South Port of Colombo, is ready.

This was part of the port's effort to overcome delays caused by increasing cargo volumes and restrictions on navigation imposed for security reasons.

Colombo now has four deep water berths at the state-run Jaya Container Terminal, three deep water berths at the privatized South Asia Gateway Terminals and two feeder berths at the Unity Container Terminal.

These berths are equipped with pier-side gantry cranes to load and unload containers from ships.

The SLPA will use a combination of mobile cranes and top lifters to handle cargo at the planned new berths, Wickramasuriya said.

Feeder ships are used to transship containers from the bigger mother ships in the 'hub and spoke' system of container trade.

It is not economical for the mother ships to call at smaller regional ports, which also lack the depth to take in big ships.

Colombo as a transshipment hub for the south Asian region handles container cargo to and from feeder ports in the sub-continent.

Wickramasuriya said the plan calls for turning some of the port's general cargo berths into ones that can handle container vessels of the feeder operators who serve the region.

This would free up the deep-water berths for the bigger ships of main line operators.

Currently, Colombo port's northern entrance is closed to protect it against Tamil Tiger attacks.

This means the port has only one channel for vessel navigation, causing traffic jams where ships have to wait a long time to enter or leave the harbour.

The navigational delays means higher costs for both vessel operators as well as port terminal operators owing to the idle time.

LBO (http://www.lbo.lk/fullstory.php?newsID=536625254&no_view=1&SEARCH_TERM=7)

Interesting but there are quite a few issues and complications... But how many feeder berths will be added and where?

Wed, 8 August 2007 21:13:22
LBO >> Finance
Floating Lien
08 August 2007 11:12:07
Sri Lanka bank regulator to look into ship financing


August 08, 2007 (LBO) – Sri Lanka's Central Bank Governor Nivard Cabraal said he will look at the banking sector's reluctance to lend to ship-owners and called for new methods of financing that may allay the concerns of lenders.


The island's banks had hitherto been reluctant to provide ship financing as they were unfamiliar with the business and its risks, he told a conference on the island's prospects of becoming a maritime hub.

The conference was organised by the Sri Lanka branch of the Institute of Chartered Shipbrokers to mark its 20th anniversary and comes at a time when the country has started several port development projects.

Sri Lanka, although being an island, hardly figured among nations that owned fleets of ships, Cabraal said.

Only a handful of Sri Lankan companies own ships and those too are small, second hand vessels.

Cabraal said the island's maritime community had complained of difficulties in getting bank loans to buy ships in an effort to get into the business which has now become lucrative given the boom in world trade.

He acknowledged that banks were wary of giving loans to buy ships as they were unfamiliar with its risks.

This was because of difficulties in securing collateral in the form of ships acquired through such loans.

"Banks can't catch the collateral – they can't seize a ship like a vehicle," Cabraal said.

"So let's look at other instruments."

He urged the shipping industry to formally propose ways of developing ship financing saying: "We have the time and space for you. Being an island nation, we need to develop shipping."

Cabraal noted that shipping supports many other industries like banking, insurance, logistics, transport and clearing and forwarding.

New port projects being undertaken by the government with private investment are opening up business opportunities for the private sector.

"The new port terminals in the Colombo South Harbour project offer ample scope for the private sector," Cabraal said.

The planned new Colombo south port – among a portfolio of ambitious project launched by the government – puts Sri Lanka in a "new position" altogether, he said.

Similar opportunities would emerge with the building of a new port in Hambantota.

"Those firms that position themselves at the right time and right place will benefit from these developments."

Aug 10, Colombo: Sri Lanka Minister of Ports and Aviation Chamal Rajapaksa said in the parliament today that the construction of the Colombo South harbor would commence in November.

Addressing an adjournment debate in the parliament today the Minister said that the tenders for the construction of the terminal under Built Operate and Transfer basis have now closed.

Asian Development Bank grants US$30 billion of the US$40 billion needed to construct the breakwater and the terminal costs US$45 billion, said the Minister.:drunk: :shocked: should have been $300mil

The proposed harbour in an area of approximately 600 hectares will have 4 terminals of over 1,200m in length each to accommodate 3 berths alongside depths of 18m and provision to deepen to 23m to accommodate deeper draft vessels of the future.

The development of the Colombo South Harbour will be carried out in two stages. The first stage of development involving the infrastructure with public funds costing US$300 Million and the construction of stage other terminal facilities in the second stage costing US$700 Million from private sectors.

Colombo page (http://www.colombopage.com/archive_07/August10141041SL.html)

Good, hope the project finally really gets of the ground because of it's immense value to Sri Lanka's economy and shipping sector...

"Asian Development Bank grants US$30 billion of the US$40 billion needed to construct the breakwater and the terminal costs US$45 billion, said the Minister"

I'm really hoping that is bad journalism ! If that was in Rs. it would be correct. Oh and will this go with the 2nd anniversary of nov 17th ? that would be very....lame

By Rebecca Fleming
The land owners of Hambanthota who sacrificed their properties were to get a minimum compensation of Rs.500, 000.

This was revealed at a ceremony held yesterday at the Colombo Port Authority’s unity container terminal to grant compensation to hundred and thirty land owners of Hambanthota port.The compensations were granted on the basis of the valuation made by the Valuation Department and the minimum compensation is estimated as Rs.500, 000 and the owners were to receive compensation according to the valuation.

The ceremony was attended by Minister of Ports and Aviation Chamal Rajapakse, Mayor of Hambantota, provincial councillors of the district and officials of Ports Authority.Minister of Ports and Aviation Chamal Rajapakse addressing the land owners who were present on the occasion said, “You have done a great deed by sacrificing your properties to this project of national importance”.

Out of the 430 families who sacrificed their properties for the Hambantota port project, 130 families were granted compensation while the compensation for the rest will be granted in Hambanthota in the near future. The families who came to Colombo were selected on the basis of agreeing earlier to sacrifice their properties for the project.

The 130 families were given the opportunity to see and experienced what a port because even though there were big talks about the port people were clueless about it. In fact one of the objectives in bringing them to Colombo is to let them take the message, how important a port is.

Also to let them feel changes that the Port will bring in their district. The families were present were given the rare opportunity of a ride on a ship., “Hansakawa” apart from serving them the special Ports lunch.

“Constructing a port in Hambantota is a long felt need and in 1910 even Leonard Wolf had stated the possibility of constructing a port. President Mahinda Rajapakse wanted to expedite constructing the Hambantota Port so he had done his best and now it’s our turn to do so” added the Minister.

The construction work of the Hambantota port is scheduled to begin in September this year and the Chinese construction company is here already.

Accordingly Minister stated that, “the port will be completed within three and half years and we hope to make the Hambantota port the best port while developing the district. Furthermore the minister drew the peoples’ attention towards the employment opportunities that would come into being with the development in the district along with the port.

“At present a tyre company with a 2700 employees at present has already come forward with 3000 employment opportunities” disclosed Minister Rajapaksa.

Financial Times (http://www.dailymirror.lk/2007/08/11/ft/20.asp)

"Asian Development Bank grants US$30 billion of the US$40 billion needed to construct the breakwater and the terminal costs US$45 billion, said the Minister"

I'm really hoping that is bad journalism ! If that was in Rs. it would be correct. Oh and will this go with the 2nd anniversary of nov 17th ? that would be very....lame

They must mean Rs. No way $45 Billion.

journalism at its worst in good old SL!!!!!! :ohno:

journalism at its worst in good old SL!!!!!! :ohno:

No, It's just daily news, I checked it several times!

45 billion USD would be enough for Sri Lanka to become damn modern...

45 billion USD would be enough for Sri Lanka to become damn modern...

We can pay all the debt & can build a whole different country:nuts:

Tue, 14 August 2007 20:21:32
LBO >> Bonds
Bond Plan 1 Comment/s
14 August 2007 07:17:32
Sri Lanka port firm plans bond issue


August 14, 2007 (LBO) – Sri Lanka's state-owned Ports Authority (SLPA) is planning an international bond issue to raise funds for new expansion projects and repay debt, its chairman Saliya Wickramasuriya said.


The authority is making arrangements to get an international credit rating before making a bond issue to raise funds, he told a shipping conference organised by the Sri Lanka branch of the Institute of Chartered Shipbrokers last week.

"In order to explore the possibility of debt swapping via an international bond issue we have completed a credit assessment with Fitch Rating," he said.

"We plan to expand this internationally into a full blown international credit rating over the coming months which may allow us access to bond markets."

The decision to go ahead with a bond issue would depend on the cost of debt at the time.

But it may enable the SLPA to derive "some efficiencies fiscally," he said.

Wickramasuriya said the SLPA is the largest foreign exchange earner in the country making a net contribution to the government's consolidated fund to the tune of around four billion rupees annually.

While it has the financial resources to undertake many of its own projects it also has the responsibility of repaying loans taken for previous projects.

"We bear the brunt of the cost for all our port projects including having to repay the remaining yen loans from the mid-1980s given by Japan for the construction of the Jaya Container Terminal (JCT)."

The JCT, Colombo's main deepwater container terminal, was built with Japanese aid.

Colombo port carries a debt burden to the tune of 1.5 billion dollars in addition to its operating costs, Wickramasuriya said.

Most new port projects planned in Sri Lanka, apart from the new south port of Colombo, would not generate immediate commercial returns.

However, they were important from the point of view of the national economy as they would generate many spin off benefits to the rest of the economy, particularly under-developed regions of the island.

These projects were seen as public interest infrastructure development projects, especially helping to develop rural areas, Wickramasuriya said.

The SLPA is currently evaluating bids from international port operators and shipping lines to build and operate the first container terminal in the planned new south port of Colombo, next to the existing one.

Wickramasuriya said the SLPA would be seeking a partner who can ramp up the container transshipment business in the shortest possible time and generate improved cash flows for the port authority.


"The inescapable fact at the moment, the most important thing to the port at the moment, is the ability of a bidder to ramp up cargo throughput in the port in the shortest possible time to maximum capacity and ensuring the highest annual income for the port throughout the life of the concession."



http://www.lankabusinessonline.com/fullstory.php?newsID=704354648&no_view=1&SEARCH_TERM=15

Guys SL ports authority celebrating the 28 years of excellence, Site has been updated, Its awesome.........also can see some construction in CMB, possibly GS Towers:cheers:

http://i19.tinypic.com/4ullk41.jpg
http://i15.tinypic.com/52bb0aq.jpg

SLPA LK (http://www.slpa.lk)

Sat, 18 August 2007 20:18:13
LBO >> Transport
Natural Harbour 1 Comment/s
18 August 2007 08:41:47
Sri Lanka's Trinco port to be developed as eco-port


August 18, 2007 (LBO) – Sri Lanka's eastern port of Trincomalee is to be developed as an eco-port with the emphasis on exploiting its value as a marine habitat, an official said.


Sri Lanka Ports Authority (SLPA) chairman Saliya Wickramasuriya said Trincomalee will not be developed for industrial activity or to handle containers.

This is because planned developments in Colombo port and the proposed port in Hambantota will generate enough capacity for years to come.

"We are building enough capacity for several generations between Colombo and Hambantota," Wickramasuriya told LBO in an interview.

"It's therefore logical for Trincomalee harbour to be exploited for reasons unique to Trinco. By that we mean developing Trincomalee as an eco-port.

"It has a unique marine habitat and has the potential to attract the highest bracket of global eco-tourists because it's a breeding ground for a variety of different species of mammals with a deep harbour."

Wickramasuriya said the harbour's eco-system is unique but fragile and has potential to generate revenue.

"As such we would like to protect and preserve the bay environment as much as possible and leave room for any leisure activity like cruise ships, whale watching, sailing, diving, sports fishing."

This would mean shifting commercial maritime movements to less environmentally sensitive areas south of Trincomalee by building a common user facility which will abut the proposed heavy industrial belt to come up around the outside of Trinco networked by a ring road.

"We plan to migrate most of the heavy, potentially polluting marine traffic from the inside – the inner, deep bay – and bring it down to the common user facility in the south," Wickramasuriya said.

Currently, the main industries in Trincomalee are the Prima flour mill and the Tokyo Cement plant.

"We do not want to move any of the existing heavy industries, simply limit the addition of new ones," Wickramasuriya said.



http://www.lankabusinessonline.com/fullstory.php?newsID=1031005544&no_view=1&SEARCH_TERM=7

Your gonna love this guys...

Tue, 28 August 2007 9:36:32
LBO >> Transport
Better Defence
28 August 2007 09:06:05
Sri Lanka to re-open Colombo harbour second entrance


August 28, 2007 (LBO) – Sri Lankan security authorities plan to re-open Colombo port's northern entrance for navigation once underwater defence systems being tested are installed and activated.


The planned re-opening will remove a key constraint that has caused lengthy delays for cargo ships and raised costs for both shipping lines and port terminals.

The delays were seen as endangering Colombo's competitiveness as south Asia's transshipment hub.

A meeting was held last week between port authorities and the navy which is in charge of the port security to review harbour security measures.

The authorities in recent weeks have been testing different underwater surveillance and intruder detection systems to enhance the defences of the port through which passes most of the island's trade.

The northern entrance has remained closed for over a year to protect the port against Tamil Tiger attacks.

It meant the port has only one channel for vessel navigation, causing traffic jams where ships have to wait several hours to enter or leave the harbour.

The navigational delays means higher costs for both vessel operators as well as port terminal operators owing to the idle time.

The surveillance systems that were tested are designed to detect intrusions by both submersibles as well as Tiger scuba divers.

New systems that are small and easy to install and operate have become commercially following the global terrorist threat posed by Al Qaeda to maritime commerce.

Port officials said their aim was to ensure Colombo port's protection while maintaining a smooth flow of commerce.

More than 90 percent of Sri Lanka's trade goes through Colombo port and any disruption of cargo flows could affect the entire economy.

Likewise, perceptions that security in the harbour is weak could also have economic implications if foreign insurers jack up risk premiums.

The Tigers are known to be planning to attack the harbour.

They tried to attack the harbour in April 1995 when a speed boat and a suicide diver actually entered the port but were detected and blown up.

The new security measures take on added significance with reports that one of the two suspected Tamil Tiger supporters arrested in London recently had been planning to buy underwater warfare and naval weapons systems.



http://www.lankabusinessonline.com/fullstory.php?newsID=1620025739&no_view=1&SEARCH_TERM=7

Good news for exporters^^

ya heard about the underwater surveillance stuff...good news for the country as a whole!!!

Sept 04, Colombo: Sri Lanka Maritime Pollution Authority says that a center for collecting the burnt oil relieved by the ships will be set up in the Colombo harbor soon.

The Central Environmental Authority conducts the setting up of the center that will cost US $ 20 million.

Vessels in the Colombo harbor issue around 25,000 metric tons of burnt oil annually causing maritime pollution. The new center will collect the oil to clean the waters and to reuse it.

Colombo Page (http://www.colombopage.com/archive_07/September4132633SL.html)

wow...thats realli good news..esp for the environment!!!!! great going!!!!

Excellent stuff, this is a true innovation to preserve the environment and reuse oil that would have otherwise have caused pollution, but 20 million USD is not cheap- but I guess the returns are greater than that...

Sept 08, Colombo: Sri Lanka's Colombo harbor set an all time operation record by handling 304,285 containers in July last year.

The previous record was handling 300,924 containers in August 2006.

Colombo harbor handled 1,930,027 containers in the past seven months of this year pointing to an increase of 14.28% compared to the same period last year. 2,517 ships reached the harbor during this period. It is a 2.8% increase compared to the same period last year.

Colombo Page (http://www.colombopage.com/archive_07/September852324SL.html)

Good and now the north exit opening will also give more convenience and confidence to ship operators... If the Colombo South Port comes up on time CMB will really be extremely competitive, worldwide...

Terminal notes: Shipping lines might “pull out” of Colombo; Northern entrance closure a tight issue; small window of opportunity still exists

By Sunimalee Dias

The South Asia Gateway Terminal (SAGT) will be investing in another major investment project to obtain increased capacity and thereby becoming more competitive globally.

The terminal will be purchasing a Differential Global Positioning System (DGPS) which will be able to detect the positioning of the containers via satellite system and this will be brought into Sri Lanka next year, the terminal’s CEO Steve Edkins told the Daily Financial Times.

The DGPS is expected to help increase the volume and improve productivity with more labour and added labour incentives. Differential Global Positioning System (DGPS) is an enhancement to Global Positioning System that uses a network of fixed ground based reference stations to broadcast the difference between the positions indicated by the satellite systems and the known fixed positions. These stations broadcast the difference between the measured satellite pseudoranges and actual (internally computed) pseudoranges, and receiver stations may correct their pseudoranges by the same amount.

SAGT that marked its 8th anniversary last week has today taken on more investments since 1999 for its shareholders and has lifted its services, it was observed.

Operating on a 24 hour basis, the terminal’s “window of opportunity is small but there’s a large potential regional hub; but to do that we need the South Harbour,” he said.

It was noted that with the expansion into the South Harbour there was potential for the SAGT to be able to make a further 10 million plus TEUs.

“Colombo’s rapidly approaching its capacity and the shipping lines have to look for alternatives,” he noted with concern.

However, with no further expansion at Colombo happening there was a big possibility of the shipping lines pulling out which afterwards would be difficult to attract again.

Shipping lines are likely to look elsewhere as they did in the 1990s, SAGT General Manager – Marketing and Commercial Tissa Wickramasinghe said.

He added that “given the current commitments in terms of fixed window berthing programme, about 940 million TEUs could be handled by two ships.

But the topmost concern is that South Harbour needed to happen soon in order for the Colombo harbour to ensure increased capacities to be maintained.

Edkins noted that Singapore being the SAGT’s main competitor, the manner in which the terminal was able to garner increased business was through “transshipment which will help the economy” for which they have the facilities, productivity, efficiency, reliability, consistency, and price which are all vital points for imports.

With a one million TEU capacity currently the terminal is targeting 1.6 million TEUs this year and it was observed, “We are on course to achieving this target.”

The terminal had been able to achieve 1.3 million TEUs in total during 2006 while by this year August they had made over 1 million TEUs.

Moreover, it was highlighted that the SAGT was in the process of ordering additional equipment in bringing down quay cranes and RTGs.

The issues that highlight the various reasons for keeping the increasing capacity was the closure of the Northern entrance which although according to reports was expected to re-open soon had not happened upto date.

SAGT chief pointed out that “if it’s only day time opening it will reduce the bottlenecks and immediately create capacity”.

However, under the current circumstances, SAGT can only handle about five ships per week.

“We can handle another four more ships per week if the Northern entrance is re-opened,” it was pointed out.

Other investments the terminal will be going in for would be related to enhancements in terms of data transmissions, radar communication and continuous upgrading.

DM (http://www.dailymirror.lk/2007/09/10/ft/06.asp)

Nice stuff...

Good news...

Fri, 28 September 2007 20:02:20
LBO >> Transport
Breakwater Contract
28 September 2007 15:35:36
By Shamindra Kulamannage
Sri Lanka picks Hyundai for Colombo port breakwater


Sept 28, 2007 (LBO) – Sri Lanka has picked Hyundai, a Korean firm, to build a breakwater in Colombo that will allow terminal operators to nearly double the container handling capacity at the Port, an official said.


The 320 million dollar contract will be awarded to Hyundai if Asian Development Bank, the concessional lender to the project, accepts the government’s recommendation.

The Manila based ADB is lending 300 million dollars to finance a breakwater extending the Colombo port southwards in to the sea where private sector companies will build three large container terminals.

“The tender board has picked the bid offering the lowest construction cost and the recommendation was forwarded to the ADB on Thursday,” an official close to the deal told LBO.

Hyundai Engineering Construction of Korea was the lowest bidder at 36 billion rupees (320 million dollars) for the civil works.

Its largest components are the breakwater which is an undersea wall protecting the port from tides and bad weather and the dredging to deepen the new port to accommodate large ships.

The project will also fund a new marine operations center, relocate an underwater oil pipeline and provide navigational aids.

The ADB also said in March this year that “security measures have been highlighted and incorporated into the project because of the current conflict situation” without giving details.

The two other technically qualified bidders Hanjin Heavy Industries and Construction of Korea and China Harbour Engineering Company wanted 76 billion rupees and 61 billion rupees respectively for the construction of the civil works.

Government will have to finance around 20 million dollars for the construction although picking any of the other bids would have raised its commitment by up to 350 million dollars for the expanded port which will be owned by Sri Lanka Ports Authority.

Financial bids were opened on September 10, by the cabinet appointed procurement committee (CAPC) after the one for technical evaluations (TEC) recommended three of the four bidders as meeting minimum criteria.

The Colombo port expansion project, earlier called the Colombo port south harbor development, got full ADB backing in March this year after the lender dropped a demand to convert a government owned container terminal in the port to a limited liability company.

Bids were called for both the civil works and for building the first container terminal as a public private partnership at the same time in December last year.

Government will sign a concession agreement with the selected party for the container terminal for which 5 firms and consortia including four Sri Lankan listed firms are bidding.

“We were told a selection would be made within 60 days from tenders closing but that’s long passed,” one of the bidders for the terminal concession said.

However a state official said selecting the public works contactor would "help accelerate the process to finalize the terminal concessionaire.”

The first terminal built on the south side of the proposed new port, to accommodate three large container vessels at one time, will increase annual container handling capacity to 5.9 million twenty foot equivalent units (TEUs) from the current 3.3 million.

Shipping analysts have said that Sri Lanka was losing market share to competitors because it is running out of capacity and Colombo was also not deep enough to accommodate the latest range of container vessels.

Seventy percent of Colombo port's container traffic is transshipment business which makes it the largest port in the South Asian region.



http://www.lankabusinessonline.com/fullstory.php?newsID=1938576943&no_view=1&SEARCH_TERM=7

Sun, 30 September 2007 11:34:08
LBO >> Transport
Ocean Freight
30 September 2007 07:29:52
Sri Lankan shippers wants rules to promote competition


Sept 30 (LBO) – Sri Lankan shippers say the government should follow the example of other countries in the region like India and China and introduce laws to curb the powers of shipping lines acting like cartels.


The Global Shippers’ Forum and Asian Shippers Council at their recent meeting in Singapore called upon Asian governments to review their local regulations and introduce legislation to stop anti-competitive behaviour by lines and ensure free trade.

"This decision is very important to the local industry that is facing serious anti competitive practices by global shipping lines and other service providers," said Rohan Masakorala, Asian Shippers Council (ASC) Vice Chairman and former chairman of the Sri Lanka Shippers' Council.

Shippers say Asian government are coming under pressure to eradicate shipping cartels following the European Union's ruling to outlaw shipping line monopolistic practices by October 2008 and similar efforts in North America.

This was the main thrust of the Joint Shippers' Declaration that was signed in Singapore during the 14th annual meeting of the Global Shippers' Forum.

The GSF represents various shipper groups from North America, Asia, Africa, Oceania and Europe.

Shipping lines operate in groups called conferences and defence the practice saying it is necessary to optimise vessel capacity because of heavy investments and long lead times to build ships and fluctuating trade patterns.

Until recently shipping alliances had been given immunity from anti-competition laws but the conference system is on the way out with the impending ban by the European Union.

Masakorala said shippers have long campaigned to abolish what they called shipping line “cartels”.

The Sri Lanka Shippers' Council has also waged a long campaign against the terminal handling charge charged by lines for moving cargo through Colombo port.

Shippers are demanding the THC should be incorporated in the freight rates.


It has now filed a case in the Supreme Court to press for the withdrawal of the THC.


http://www.lankabusinessonline.com/fullstory.php?newsID=631759654&no_view=1&SEARCH_TERM=7

Fri, 5 October 2007 21:17:32
LBO >> Transport
Box Profits
05 October 2007 06:33:10
Sri Lanka container terminal sees record growth, nears capacity


Oct 05, 2007 (LBO) – John Keells Holdings’ (JKH) associate South Asia Gateway Terminals (SAGT) has reported record container volume growth in its Colombo port terminal but the facility is nearing capacity, port officials and analysts said.


This makes it vital for JKH to win the bid for the new container terminal in Colombo port in order to maintain growth from its existing transportation business, now the main source of the conglomerate's profits, analysts said.

SAGT has announced it handled 141,837 TEUs (Twenty-foot Equivalent Units or containers) in September 2007, setting a new monthly record.

"The stellar performance beats the monthly record set in July 2007 of 141,444 TEUs," the terminal, which is one of JKH's cash cows, said.

Surpassing the one million TEU mark in eight months, SAGT has handled 1,143,114 TEUs in the first nine months of this year, up 16.8 per cent over the same period of 2006, it said.

Colombo's privatised container terminal, in which JKH has a 33.75 percent stake making it the largest single shareholder, is aiming to break the 1.5 million TEU mark this year, port officials said.

However, investment analysts said the rapid growth could mean the terminal was nearing saturation which means the growth could taper off.

"It's very clear SAGT, which has a tax holiday, is making a substantial contribution to JKH profits,” said Channa Amaratunga, Chief Investment Officer-Boston Capital, a boutique investment house.

"But SAGT is approaching its full capacity which means the rate of growth could slow down."

SAGT's chief executive, Steven Edkins, told LBO earlier this year the terminal aims to handle 1.6 million containers by the end of this year, as India's bulging trade volumes increase the flow of cargo through the harbour.

He said the terminal had been able to make efficiency gains to handle more than its designed capacity.

The terminal handled 7,208 boxes on September 24, its highest volume in a single day and the first time it crossed over 7000 TEUs a day.

Amaratunga said SAGT's rate of growth may be slowing down from last year's rapid growth as it nears full capacity.

"From JKH's point of view it now becomes imperative it is successful in its bid for the Colombo South Port terminal."

JKH has put in a bid for the first terminal of the South Port as part of a consortium consisting of the holding company of Malaysia’s Westport and South Asia Gateway Terminals.

All of Sri Lanka's top conglomerates have bid for the terminal in the new South Port of Colombo, a brand new $1.2 billion deep water port that is designed to help the island maintain its transshipment hub status.

The project has become a high stakes game with Aitken Spence, which has also bid in partnership with Port of Singapore Authority, going to court seeking to block a rival bid by Hutchison Port Holdings.

Amaratunga said that while SAGT might continue to do well its rate of growth might slow unless the company gets new capacity.

"SAGT is doing well. In JKH's first quarter results transport dominated profit growth. But terminal internal efficiencies will only take you so far.


"SAGT will continue to be a cash generating operation but if JKH wants to be a growth story then it must look at where it's going to get future growth."



http://www.lankabusinessonline.com/fullstory.php?newsID=1735990435&no_view=1&SEARCH_TERM=7

Oct 10, 2007 (LBO) – Sri Lanka's Supreme Court Wednesday ordered the government to open all four financial bids to build a new container terminal in the new Colombo south port project, officials said.

The order came after a consortium led by conglomerate John Keells Holdings sought court intervention when their technical bid for the project was rejected.

The financial bids to build and operate the first container terminal in the new deep water port to be built next to Colombo are scheduled to be opened Thursday.

Also Thursday, the Appeal Court will hear a case filed by Aitken Spence, which has bid for the terminal in partnership with PSA Corp, seeking to block a rival bid by Hutchison Port Holdings (HPH).

HPH and PSA Corp are two of the world's biggest port operators.

The Supreme Court order means the Cabinet appointed negotiating committee will have to open the bid submitted by the JKH-led consortium that includes South Asia Gateway Terminals which runs Colombo port's privatized container terminal, and the holding company of Malaysia’s Westport.

Their bid was earlier rejected on the grounds of eligibility and the negotiating committee did not open the consortium's technical proposal.

Also to be opened Thursday would be the independent bid by Hutchinson Port Holdings, the bid by the Aitken Spence-PSA Corp consortium, and the one by another consortium with local conglomerates Hayleys and Carson Cumberbatch.

The new Colombo South Port project has become a high stakes venture for all of the island's conglomerates as transportation has emerged as one of their main sources of profits.

Aitken Spence sought to block the HPH bid alleging it is disqualified as it violated bidding requirements by having been subject to anti-competitive litigation involving its subsidiaries in Indonesian ports.

LBO (http://www.lbo.lk/fullstory.php?newsID=2072744246&no_view=1&SEARCH_TERM=7)

SL gov must encourage local companies to grow further being diversified:)

Oct 11, 2007 (LBO) – The Sri Lankan government Thursday opened four financial bids by private sector consortia to build a new container terminal in the new Colombo south port project, officials said.

No official word of the bids was available but a consortium including PSA Corp and an independent bid by Hutchison Port Holdings (HPH), two of the world's biggest port operators, were said to be the front-runners.

Officials warned that it was too early to say which would win as the bids for the terminal contract was more complicated than that of the one for the breakwater contract.

Officials said evaluation of the financial bids to build and operate the container terminal would have to include detailed calculations of the net profit for the port.

Port officials have 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 in the island.

One of the terminal contract bids opened was that of the consortium including conglomerate John Keells Holdings in which South Asia Gateway Terminals which runs Colombo port's privatized container terminal, and the holding company of Malaysia’s Westport are members.

The other bid was the one involving the other local conglomerates Hayleys and Carson Cumberbatch with the CMA-CGM shipping line.

All of Sri Lanka's top conglomerates are in the fray with Aitken Spence in alliance with PSA Corp which runs the port of Singapore.

Meanwhile, no interim order was granted by the Appeal Court Thursday in the case filed by Aitken Spence which is seeking to block the rival bid by Hutchison Port Holdings in view of Wednesday's Supreme Court order that all four financial bids be opened.

The order came after a consortium led by conglomerate John Keells Holdings sought court intervention in a separate action when their technical bid for the project was rejected.

The Supreme Court ruled that the JKH consortium financial bid also be opened subject to the evaluation of its technical bid.

The JKH consortium was originally considered ineligible by the Cabinet appointed negotiating committee as it was not considered to have experience operating two terminals which was part of the selection criteria.

.LBO (http://www.lbo.lk/fullstory.php?newsID=967047735&no_view=1&SEARCH_TERM=7)

Oct 12, 2007 (LBO) –Sri Lanka's Aitken Spence conglomerate said Friday that it appeared to have made the highest bid to build and operate a new container terminal in Colombo port.

The company bid for the project in alliance with Port of Singapore Authority (PSA Corp) which runs the port of Singapore.

"It appears from the opening of the financial proposals of all the bidders, that the consortium of PSA/ Aitken Spence PLC has tendered the highest bid," Aitken Spence said in a statement to the Colombo stock exchange.

"The award of the project to the successful bidder is subject to further evaluation from the authorities and the final decision on the award of the project will be upon the issue of a letter of intent in terms of the request for proposals," the statement added.

It gave no figures or any other details for its bid.

Financial proposals to build the south container terminal in the Colombo port expansion project were opened on Thursday.

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

HPH and PSA Corp are two of the world's biggest port operators.

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 have 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 in the island.

The port terminal project has become a high stakes competition for all of Sri Lanka's top conglomerates.

Hayleys and Carson Cumberbatch in alliance with the CMA-CGM shipping line have put in a bid while John Keells Holdings has also bid in partnership whith South Asia Gateway Terminals which runs Colombo port's privatized container terminal, and the holding company of Malaysia’s Westport.

.LBO (http://www.lbo.lk/fullstory.php?newsID=1777175939&no_view=1&SEARCH_TERM=7)

I hope the aitken spence/PSA consortium or JKH will win the bids...

The state-owned container terminal in Colombo Port unveiled plans to add berths for feeder vessels in a bid to raise productivity and reduce congestion as the volume of cargo increases and navigation restrictions intensify.

The Cabinet paper will be submitted for this purpose within two weeks to get approval to convert berths to multi purpose berths, Director (Port Operations) Sri Lanka Ports Authority (SLPA) U. Bopitiya said.

This comes as the northern entrance to Colombo port is currently closed to ward off Tamil Tiger attacks, which has resulted in having only one navigation channel being opened to traffic, which has led to congestion, longer waiting times, and rising costs.

The SLPA will develop four feeder berths for the smaller regional container vessels that call at the port for transhipment to South Asia via Colombo. Bopitiya said this is an interim measure to ease congestion until the planned new mega-port, the South Port of Colombo, is open for business.

Colombo has four deep-water berths at the State-run Jaya Container Terminal, three deep-water berths at the privatised South Asia Gateway Terminals, and two feeder berths at the Unity Container Terminal to serve increasing container trade, reports Lanka Business Online.

The SLPA will use a combination of mobile cranes and top lifters to handle cargo at the planned new berths. Some of the port’s general cargo berths are also expected to be turned which can handle container feeder vessels. This would free up the deep-water berths for the bigger ships of main line operators.

Meanwhile, the construction of breakwater project, the lowest bidder is Hyundai (US$ 360 billion). Other bidders were China Harbour (US$ 620 million) and Hanjin (US $ 710 million). It is learned that technical evaluation has been done and has reported to ADB.

DN (http://www.dailynews.lk/2007/10/18/bus07.asp)

good news, but the Colombo South Port has to be implemented and built on schedule without delays, unlike other major infrastructure projects in SL...

Oct 18, Colombo: Sri Lanka Cabinet of Ministers gave its approval to sign an agreement with the Exim Bank of China to obtain a Buyer’s Credit Facility of US$ 307 million for the Hambantota Port Development Project.

President Mahinda Rajapaksa, in his capacity as the Minister of Finance and Planning, submitted the memorandum in this regard.

The project, one of the mega infrastructure projects in the medium term development programme of the country aims to expand the port related services using the advantageous location of Hambantota. The entire cost of the Hambantota Port Development and related development would cost US $ 450 million.

The construction of the new port when completed is expected to provide 6,000 new jobs and 50,000 to 100,000 jobs as indirect employment.

A Chinese consortium comprising China Harbour Engineering Company Ltd and Sino Hydro Corporation Ltd would be in charge of the construction.

Colombo Page (http://www.colombopage.com/archive_07/October18134800CH.html)

The technical and financial evaluations for the breakwater and dredging of the Colombo South Harbour have been completed with Asian Development Bank (ADB) approving the government evaluations, said ADB Country Director Richard Vokes.

The contract is to be awarded to Hyundai Engineering Construction Co. Ltd at a cost of Rs. 36.3 billion.

He said the Sri Lanka Ports Authority (SLPA) is planning to issue the letter of acceptance as per the bidding process when Cabinet approval is obtained.

"The agreement will be signed only after effectiveness conditions are fully satisfied", Vokes said. The agreement will be signed after the contractor submits a performance bond.

The financial evaluations for the Container Terminal Component is nearing completion and the government is expected to issue an invitation for the negotiation of the Concession Agreement which is an effectiveness condition to the selected private operator.

Vokes said the government is taking steps to implement the Colombo South Harbour Development project which will help consolidate the position of the Colombo Port as a transshipment hub port for the South Asian region.

The completion of the project will provide sufficient container-handling capacity and depth for the latest generation mainline vessels to call at the Colombo Port.

The container handling capacity of each terminal will be 2.4 million TEUs per year. The Colombo Port including South Asian Gateway Terminal (SAGT) handled 3.08 million TEUs in 2006.

He said when the three terminals are fully developed they will provide an additional capacity of 7.2 million TEUs per year. The project aims to increase transshipment cargo which account for 75 percent of Colombo Port's handling in 2006.

A substantial quantity of this cargo will generate from the Indian subcontinent cargo. Without expanding the handling capacity, the Colombo Port will lose its hub status as shipping lines will divert to other ports which have an expanded handling capacity", he said.

The ADB is lending a USD 300 million loan on a 25-year term with a five-year grace period.

Sunday Observer (http://www.sundayobserver.lk/2007/10/28/fin02.asp)

Good news, hope everything related to this mega project will work out fine and on time...

Sun, 28 October 2007 13:50:11
LBO >> Equities
Higher Numbers
26 October 2007 17:00:25
Sri Lanka John Keells profits up 25-pct on port, interest income


Oct 26, 2007 (LBO) – Sri Lanka's John Keells Holdings after tax profits for the September quarter rose 25 percent with container handling and interest income bringing the bulk of the profits, its accounts released Friday showed.


Group after tax profits rose to 1.06 billion rupees in the quarter from 854 million a year ago, while revenues rose 19 percent to 9.6 billion rupees.

For the six months after tax group profits were up 38 percent to 1.92 billion rupees while revenues went up 16 percent to 18.1 billion rupees.

"Their profits have gone up mainly due to the interest income derived from the proceeds the rights issue," Rajive Dissnayake Head of Research at HNB Securities said.

For the six months interest income shot up to 1,094 billion up from just 128 million a year ago, while 11.7 billion rupees was shown as being in government securities.

In Sri Lanka investing in government securities have become a lucrative activity with deteriorating fiscal policy, though a foreign bond issue have now cooled the market for a short time.

Some studies have shown that treasury bills have outperformed equities in the last 15 years indicating that financing the government is a better bet than engaging in real economic activity.

The transportation sector which includes Lanka Marine Services (LMS), a bunker supplier subsidiary and South Asia Gateway Terminals (SAGT) a container terminal associate, brought in 818 million to the bottom line.

Segmented results showed that profits from subsidiaries have fallen to 422 million rupees from 281 million, while associate companies showed an increase to 527 million from 281 million rupees.

This seems to indicate that LMS had fared less well while SAGT had done better. The container port is believed to be operating at above capacity.

The leisure sector had lost 65 million rupees while the financial sector had shown 78 million rupees in profits from 32 million rupees.



http://www.lankabusinessonline.com/fullstory.php?newsID=1514850153&no_view=1&SEARCH_TERM=13

Sri Lanka and China have signed an agreement related to the construction of the Hambantota Harbour.
Finance Secretary Dr. P.B. Jayasundera and President of Exim Bank of China Lee Rogu signed the agreement. The signing took place at Temple Trees in the presence of President Rajapakse. It was the President who submitted a memorandum to the cabinet to obtain the loan from the Chinese Bank. The Chinese government will be providing 30.7 billion rupees. There are 430 families in the area where the Hambantota harbour is to be located. They had dedicated their houses and lands for this project, which is of national importance. They were compensated in August this year and government took action to relocate them in suitable areas. An oil tank complex will also come up in the location. Ministers Douglas Devananda, W.D.J. Seneviratne, Pavithra Wanniaarachchi, Ranjith Siyambalapitiya, Mano Wijeratne and Jayatissa Ranaweera were among those present on this occasion. The President is due to visit the location to review progress of the work.




The harbour will come up at Karagamlevaya in Hambantota. Three anchorages each 16 metres deep will be built in an area spanning 43 hectares. Part of the main Matara – Kataragama highway will also come under the project. The construction of the harbour will lead to acceleration of economic development in the area. It will be the local industrialists who will benefit by this project.
More than 300 million US Dollars will be expended on the project. Financial assistance will come from the Chinese government. This is the result of the President’s tour of China. The related agreement was inked today. Deputy Chairman of the Ports Authority P.B. Wickremamunige said the government’s intention is to complete the work by the year 2010.

Watch the video, It is off the ground:banana::banana::banana::banana:
ITN (http://www.itn.lk/news_02_20071030.html)


http://i5.tinypic.com/520mhbc.jpg

Oct 30, Colombo: Sri Lanka government and Exim Bank of China entered into an agreement today pertaining to the construction of Hambanthota harbor. The agreement was signed under the patronage of the President Mahinda Rajapaksa.

China has agreed to fund 85% of the US 360 million port development project. Exim Bank of China provides a Buyer’s Facility amounting to US $ 307 million with an interest rate of 0.90 per cent.


http://i13.tinypic.com/3yr8l88.jpg

hurrah great news, funding is always a problem know the only hurdle on our path to success is a lenghty construction period caused by briberys, corruption or other factors...

This looks great!!http://www.colombopage.com/imgs_07/mr_103107_02.jpg
http://www.colombopage.com/imgs_07/mr_103107_03.jpg
Hopefully it all works out as planed:cheers:

This looks great!!http://www.colombopage.com/imgs_07/mr_103107_02.jpg
http://www.colombopage.com/imgs_07/mr_103107_03.jpg
Hopefully it all works out as planed:cheers:

Welcome to the forum, keep it up^^

The Government is expecting to conclude the first phase of the Hambantota Port construction in three and half years,” stated the Minister Ports and Aviation Chamal Rajapaksa at the inauguration ceremony of the Hambanthota Port’s construction work today (31st).
He added that the financial agreement for the Hambanthota Port Development project with the EXIM bank of China was signed yesterday under the patronage of the President Mahinda Rajapaksa. Accordingly, China's EXIM Bank will provide an export buyer's credit of 360 million U.S. dollars for the project.

ImageAlso addressing the occasion, the Minister of Foreign Affairs, Rohitha Bogollagama, said that President Rajapaksa was able to gain support for three major development projects in Sri Lanka during his recent visit to China: the Norochcholai Coal Power Plant, Hambantota Port and for the construction of a fully equipped cultural center.

“Within 6 months of the visit, the Chinese President, Hu Jinthao, took steps to grant US $ 400 million for the construction work of the Norochcholai Coal Power Plant and the construction work of the cultural center is also to be initiated in December with a grant of US $ 100 million,” he said.

ImageThe Minister also pointed out that these development projects will provide new career opportunities for more than 20 million Sri Lankans and be a boost to the government’s efforts to reach its economic targets even as it fights to liberate the country from terrorism.

Ministers Dinesh Gunawardana, Sumeda G. Jayasena and Vice President of the Ports Authority Priyath Wickrama also addressed the gathering.

Sri Lankan Ambassador to the People’s Republic of China, Sarath Amunugama, Secretary to the Ministry of Finance, P.B.Jayasundara, Opposition Leader of the Colombo Urban Council, Vasudewa Nanayakkara, President of the Ports Authority Saliya Wickramasooriya and the Chairman of China's EXIM Bank, Li Ruogu, were also present at the event.

news.lk (http://www.news.lk/index.php?option=com_content&task=view&id=3852&Itemid=44)

Nov 20, 2007 (LBO) – A Sri Lanka government panel has decided to start negotiations with the front runner for a new container terminal in Colombo with a Port of Singapore Authority and Aitken Spence bid being hot favourites to win the deal, officials said.

The cabinet appointed negotiating committee (CANC), which made its decision on Tuesday, will now start negotiating with the most preferred bidder about changes the government may wish to make to the financial proposal put forward by the bidder.

"If there is broad agreement the negotiating committee (CANC) will sign a letter of intent (LOI) with them; after that they have two months to agree on a deal," according to a Ports Authority source.

Close Race

Aitken Spence and PSA Corp combine are in a close race with Hutchison Port Holdings (HPH) for the deal, which will be awarded based on which party offers the highest return on a net present value basis on projected throughput.

In the event that negotiations fall though with the most preferred bidder, the second in line would be able to enter the process.

However the cabinet of ministers has to sanction the bidder and the Attorney General’s department has to grant legal clearance before the CANC can sign an LOI.

Being the most preferred bidder is not a guarantee of a deal, but it is an important step.

“The top ranked bidder will normally agree to at least match offers of others to get the deal,” the official said.

“It’s possible to strike a deal unless they are too arrogant.”

Port of Singapore Authority and Aitken Spence combine also ranked on top of a technical evaluation of bids which recommendation was forwarded to the CANC.

“Negotiations with the preferred bidder will focus mostly on revenue to government; others are minor issues like when the work can start and funding proposals.”

Five technical and financial bids were considered including ones by a Hayleys-Carsons combine with a French shipping firm, one by conglomerate John Keells together with SAGT, the operators of Colombo’s only private sector owned terminal, together with Westport of Malaysia.

The ports managing arm of Hanjin Shipping also bid for the terminal.

Companies submitted technical bids, which were opened first, and financial ones that outlined what they will pay the government for granting a concession to build and operate the terminal.

However a controversy erupted after Harry Jayawardene controlled public quoted Aitken Spence informed the stock market after financial bids were opened in mid October that "the consortium of PSA/ Aitken Spence PLC has tendered the highest bid."

Hong Kong shipping magnate Li Ka-shing controlled Hutchison Port Holdings, the largest port operator in the world, contended that “the winner will be determined by whoever offers the highest guaranteed total financial return”.

Officials say HPH had offered to guaranteed higher throughput than stipulated by the bid documents.

Aitken Spence earlier sought to block the HPH bid alleging it is disqualified as it violated bidding requirements, having been subject to anti-competitive litigation involving its subsidiaries in Indonesian ports.

Breakwater

The first terminal built on the south side of the proposed new port, to accommodate three large container vessels at one time, will increase Colombo Port's annual container handling capacity to 5.9 million twenty foot equivalent units (TEUs) from the current 3.3 million.

It is expected to be operational within four years.

The Asian Development bank, a multilateral lender, is funding 300 million dollars of the estimated 350 million dollar cost of building a breakwater - an undersea wall - which will protect the port from storms and tides.

Hyundai, a Korean firm, has been picked to build the breakwater after competitive bidding.

“ADB will only release the first traunch of this funding after the terminal operator has been picked,” according to the official.

The new port, which will border the existing one, will extend southwards in to the sea and will have space for four shipping terminals each able to accommodate three main liners.

Concession

Government will get a 15 percent stake in the 500 million dollar terminal to be built by the selected private bidder.

The Aitken Spence - PSA combine has proposed to jointly manage the new port, where local conglomerate Spence will have controlling interest with its 55 percent stake.

Shipping analysts have said that Sri Lanka was losing market share to competitors because it is running out of capacity and Colombo was also not deep enough to accommodate the latest range of container vessels.

Seventy percent of Colombo port's container traffic is transshipment business which makes it the largest port in the South Asian region

Nov 20, 2007 (LBO) – A Sri Lanka government panel has decided to start negotiations with the front runner for a new container terminal in Colombo with a Port of Singapore Authority and Aitken Spence bid being hot favourites to win the deal, officials said.

The cabinet appointed negotiating committee (CANC), which made its decision on Tuesday, will now start negotiating with the most preferred bidder about changes the government may wish to make to the financial proposal put forward by the bidder.

"If there is broad agreement the negotiating committee (CANC) will sign a letter of intent (LOI) with them; after that they have two months to agree on a deal," according to a Ports Authority source.

Close Race

Aitken Spence and PSA Corp combine are in a close race with Hutchison Port Holdings (HPH) for the deal, which will be awarded based on which party offers the highest return on a net present value basis on projected throughput.

In the event that negotiations fall though with the most preferred bidder, the second in line would be able to enter the process.

However the cabinet of ministers has to sanction the bidder and the Attorney General’s department has to grant legal clearance before the CANC can sign an LOI.

Being the most preferred bidder is not a guarantee of a deal, but it is an important step.

“The top ranked bidder will normally agree to at least match offers of others to get the deal,” the official said.

“It’s possible to strike a deal unless they are too arrogant.”

Port of Singapore Authority and Aitken Spence combine also ranked on top of a technical evaluation of bids which recommendation was forwarded to the CANC.

“Negotiations with the preferred bidder will focus mostly on revenue to government; others are minor issues like when the work can start and funding proposals.”

Five technical and financial bids were considered including ones by a Hayleys-Carsons combine with a French shipping firm, one by conglomerate John Keells together with SAGT, the operators of Colombo’s only private sector owned terminal, together with Westport of Malaysia.

The ports managing arm of Hanjin Shipping also bid for the terminal.

Companies submitted technical bids, which were opened first, and financial ones that outlined what they will pay the government for granting a concession to build and operate the terminal.

However a controversy erupted after Harry Jayawardene controlled public quoted Aitken Spence informed the stock market after financial bids were opened in mid October that "the consortium of PSA/ Aitken Spence PLC has tendered the highest bid."

Hong Kong shipping magnate Li Ka-shing controlled Hutchison Port Holdings, the largest port operator in the world, contended that “the winner will be determined by whoever offers the highest guaranteed total financial return”.

Officials say HPH had offered to guaranteed higher throughput than stipulated by the bid documents.

Aitken Spence earlier sought to block the HPH bid alleging it is disqualified as it violated bidding requirements, having been subject to anti-competitive litigation involving its subsidiaries in Indonesian ports.

Breakwater

The first terminal built on the south side of the proposed new port, to accommodate three large container vessels at one time, will increase Colombo Port's annual container handling capacity to 5.9 million twenty foot equivalent units (TEUs) from the current 3.3 million.

It is expected to be operational within four years.

The Asian Development bank, a multilateral lender, is funding 300 million dollars of the estimated 350 million dollar cost of building a breakwater - an undersea wall - which will protect the port from storms and tides.

Hyundai, a Korean firm, has been picked to build the breakwater after competitive bidding.

“ADB will only release the first traunch of this funding after the terminal operator has been picked,” according to the official.

The new port, which will border the existing one, will extend southwards in to the sea and will have space for four shipping terminals each able to accommodate three main liners.

Concession

Government will get a 15 percent stake in the 500 million dollar terminal to be built by the selected private bidder.

The Aitken Spence - PSA combine has proposed to jointly manage the new port, where local conglomerate Spence will have controlling interest with its 55 percent stake.

Shipping analysts have said that Sri Lanka was losing market share to competitors because it is running out of capacity and Colombo was also not deep enough to accommodate the latest range of container vessels.

Seventy percent of Colombo port's container traffic is transshipment business which makes it the largest port in the South Asian region

Interesting...Watch the double-posting...

Multi - storeyed car park planned:

Hiran H. Senewiratne

The Sri Lanka Ports Authority (SLPA) is planning a multi-storied car park and special tariffs at the Colombo port to encourage vehicle transshipment from India, an official said.

Transshipment of vehicles from India, which is positioning itself as a small-car making hub, has been growing through Colombo.

“The Port of Colombo is gearing itself to tap into the transshipment of the vastly growing Indian vehicle exports,” said SLPA chairman Saliya Wickramasuriya. The overall export of vehicles from India is expected to grow at a rate of almost 25 percent.

This includes motorcycles and three wheeled vehicles, commercial vehicles and passenger cars. “The transshipment of Indian vehicles through Colombo has seen moderate growth in the past few years,” Wickramasuriya told LBO.

“In addition the import of Indian vehicles in to Sri Lanka has seen a sharp increase especially since the enforcement of the Indo-Lanka Free Trade Agreement.” Imports of Indian vehicles for local use has also been growing and they have been taking market share from Japanese brands which used to dominate the Sri Lankan market.

The bulk of vehicle imports to Sri Lanka are now of Indian origin, although cheap Chinese vehicles have also begun to come in.

Wickramasuriya said the Sri Lanka Ports Authority will be introducing a new tariff solely for the transshipment of vehicles, especially to encourage large volumes.

“Furthermore, the port is looking at new areas for vehicle parking including the feasibility of constructing a multi storied car park.” Vehicle manufacture in India has begun to expand as the economy grows.

DN (http://www.dailynews.lk/2007/11/22/bus07.asp)

The Additional Managing Director of the Sri Lanka Port Authority (SLPA) Captain Nihal Kappetipola says that Sri Lanka should move forward without the interference of politicians or any kind of disruption.
http://i17.tinypic.com/6ooa8mp.jpg
SLPA Additional Managing Director Captain Nihal Kappetipola answering a question at the seminar ‘The Logistics Hub of Colombo’ and on his left Maersk Lanka Managing Director Eric Maard. ADB Consultant Arthur Bailey on the extreme left.

Addressing a seminar titled ‘The Logistics Hub of Colombo’ sponsored by the Asian Development Bank (ADB) in association with the Academy for International Trade and Transport (AITT) Kappetipola stated that the Colombo Port will reach its capacity by 2010 and that the Colombo South Harbour Expansion Project would be over by the first quarter of 2011.

‘Our aim is to expand it from a traditional service port to a major service port. We should also be able to use E-Business and practise it to improve the industry and the stakeholders should participate more’ the Additional Managing Director noted.

He then explored Capacity Enhancement Projects such as the JCT and SAGT Enhancements, the Feeder Berth Project, Colombo Port Expansion Project, Galle Port Developmant project, Hambantota Port Scheme and the Trincomalee Harbour development.

Kappetipola also divulged information concerning the Hambantota Port Project in his visual presentation where the estimated cost was US$301 million funded by the Government of China. The project is schedule to be completed within the first quarter of 2011.

In order to assist the concept of Colombo as a logistics hub, Kappetipola suggested Cargo Villages, Multi-Country Consolidation (MCC), hazardous cargo warehousing, boarded warehousing and assembling. He further added that there should be an optimum utilization of limited land area, development of road and railway facilities and the relocation of non vessel cargo related activities.

‘The SLPA strategy is to expand the existing Transhipment Mega Port to a Logistic Centre Port. This could be achieved without delay” he said.

Sri Lanka Resident Mission Deputy Country Director Ms. Laurance Pochard said that the ADB and the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Corporation are supporting the regional logistical and infrastructure development. Moreover she said that the Colombo Transhipment should be developed in order for the country to compete with major logistic giants such as Dubai and Singapore.“We urge all parties to act, as India is proactive and we cannot lay back, we need to be proactive as well” she concluded.

DM (http://www.dailymirror.lk/2007/11/22/ft/24.asp)

Very good plans and ideas...

Nov 26, 2007 (LBO) – Colombo port, Sri Lanka's main harbour, plans to build a dedicated cargo village to cater to rapidly increasing volumes of containers, a senior port official said.

"We're running short of space," declared Nihal Keppetipola, a master mariner who is now the additional managing director of the Sri Lanka Ports Authority (SLPA).

The SLPA has prepared a land use master plan for the port in order to optimise use of available land in the face of booming cargo volumes and physical constraints, he said.

Colombo port, which has emerged as the transhipment hub for the South Asian region, has found its ability to expand landward restricted by the city, which has grown around the harbour.

Keppetipola said the authorities recognised the need to expand urgently to cater to growing cargo volumes and increasing ship traffic and vessel sizes if Colombo wants to retain its position as a hub port.

He noted that there were more than 100 vessels of 10,000 TEU (Twenty foot Equivalent Unit or container) size on the orders books.

"We have to cope with it," he said.

The cargo village was part of SLPA plans to expand Colombo port and make it more efficient.

It is to be built on a 27-acre site near the port which is now occupied by housing for port employees. It will be connected to the port by a rail link^^:banana:

The employees will be given alternative housing, Keppetipola said.

The SLPA plan is to shift non-core operations out of the port to create more space for its main container handling work.

The cargo village will house all operations and authorities connected with port work like customs, documentation services, cargo consolidation operations, vehicle park and storage area for refrigerated containers.

LBO (http://www.lbo.lk/fullstory.php?newsID=329868007&no_view=1&SEARCH_TERM=7)

superb, finally some intelligence and planning for the better being done by the SLPA...

Dec 12, 2007 (LBO) – Sri Lankan port workers Wednesday urged the government to speed up a new project to expand Colombo port, saying further delays could jeopardise its transhipment business and hub status.

Unions representing a wide range of workers in Colombo port said the Colombo south port expansion project was a vital and urgent necessity not only to retain container business but also to develop the country.

Sri Lanka Ports Authority (SLPA) Executive Officers Union convenor P. Ranatunga warned that the government should be mindful when awarding the tender for the first container terminal in the new port, saying there were dangers in giving it to a competitor port operator.

"The project has already been delayed for several years and we're running out of time," he told a news conference.

"Unless the government acts fast to award the tender for the first container terminal in the new port we run the risk that shipping lines may shift their business to other ports."

Four bids for the first container terminal in the planned new deep water container port west of the existing Colombo Port were opened in October with the main contenders being PSA Corporation and Hutchison Port Holdings (HPH).

HPH and PSA Corp are two of the world's biggest port operators and the race to win the terminal contract was between the two as other bids were too low.

The SLPA has said it would take several weeks for the bids to be evaluated and the award made.

Ranatunga said the port unions did not favour any bidder but wanted the government to award the contract to the party that gives the best deal to the port and country and safeguards the national interest.

The unions viewed Colombo as having an ideal location for port business but that successive governments had not done enough to make the best use of its position, he said.

Union leaders said Colombo port was fast reaching its maximum capacity and unless work on the new port was started soon it risked congestion and losing business.

The SLPA has said it would have to see which bidder for the new port terminal offers the highest annual guaranteed income over a 35 year period.

The SLPA has dismissed rival claims by Sri Lankan conglomerate Aitken Spence, which has bid in partnership with PSA Corp., and independent bidder Hutchison Port Holdings.

Aitken Spence claimed in a statement to the Colombo Stock Exchange that its bid was the highest, drawing a response from HPH that the claim was inaccurate

All four Sri Lankan conglomerates listed on the Colombo bourse had bid for the project.

Hayleys and Carson Cumberbatch bid in alliance with the CMA-CGM shipping line while John Keells Holdings bid in partnership with South Asia Gateway Terminals which runs Colombo port's privatized container terminal, and the holding company of Malaysia’s Westport.

LBO (\http://www.lankabusinessonline.com/fullstory.php?newsID=842546145&no_view=1&SEARCH_TERM=7)

Come on, time is really running out...

I dnt understand why they hold it back when they have all the coffers they need:ohno:

why these companies fighting for bid,i think it should give to huthison ports lt. in hong kong coz their work is so good

why these companies fighting for bid,i think it should give to huthison ports lt. in hong kong coz their work is so good

Yep, I suppose that Aitken & Hutchison both in the top of the ladder:)

colombo should fast their work coz i heard chennai and vishakapatnum ports in india also try to expand its cpacity, also that saithu samudram canal project .if srilanka not hurry we will miss our dream to be a regional hub

come on do something................ fast

colombo should fast their work coz i heard chennai and vishakapatnum ports in india also try to expand its cpacity, also that saithu samudram canal project .if srilanka not hurry we will miss our dream to be a regional hub

saithu samudram canal project is on hold, yep as u said we got to break the ground, cannot wait anymore^^

why port athority waiting for these biding problems ,athority can start general work of expantion with dockyard companey until goverment find exact companey to project.coz already construction plans have made i dont thing it will be a problem.

coz port athority also have their own construction unit

coz port athority also have their own construction unit

Contract already awarded to Hyundai & The SLPA has said it would have to see which bidder for the new port terminal offers the highest annual guaranteed income over a 35 year period, So they have ask em to extend the time as well

Lets keep our fingers crossed and just hope for the best...

Lets keep our fingers crossed and just hope for the best...

Yep, It should break the ground very soon^^

Sun, 23 December 2007 22:10:51
LBO >> Transport
Easier Shipments
21 December 2007 15:00:53
Sri Lankan exporters say freight rate troubles easing


Dec 21 (LBO) – The threat of higher freight rates on Sri Lankan exports to Europe is easing, former Sri Lanka Shippers' Council chairman Jayanath Perera said.


Exporters were forced to pay high rates six months ago when a surge in Chinese exports led to space shortages for Sri Lankan cargo on ships calling Colombo port.

The Chinese export surge came in response to government concessions for exports for a limited time period, Perera said.

The shortage of container slots on vessels calling Colombo was made worse when big shipping lines shifted some of their scheduled calls from Colombo to Indian ports to cater to booming exports from the sub-continent.

Exporters at the time complained that their containers were being squeezed out of vessels because they were chock full of Chinese and Indian cargo and that freight rates were going through the roof.

But shipping liner officials said they had no choice but cater to markets that gave them better returns.

The weakening US dollar that reduced US import power and the strengthening euro that drew more imports to Europe also contributed to the problem at the time.

Shipping industry experts say that Colombo's strategic position near the main East-West trade route across the Indian Ocean and its emergence as a container transshipment hub for the sub-continent had benefited exporters.

Sri Lankan exporters have long enjoyed relatively cheap freight rates to their main markets in the West because of shipping lines calling Colombo for transshipment cargo.

They were also able to enjoy fast transit times to their markets because of the frequency of calls by main line vessels.

However, recent changes in global trade patterns and booming exports from China are having an impact on their advantageous position, with lines now giving more space for Chinese and Indian cargo.

http://www.lankabusinessonline.com/fullstory.php?newsID=590569332&no_view=1&SEARCH_TERM=7

Colombo Dockyards Plc (CDP) was able to secure six shipbuilding orders Greatship (India) Limited worth over US $110 million following the building of its largest anchor handling tug supply vessel to the company, yesterday.

"Colombo Dockyard have done an excellent job by exceeding all specifications of the contract," Chairman, Greatship (India) Limited K.M Sheth said at the ceremony.
http://i11.tinypic.com/71n7xwh.jpg

At the launch of the ship ‘Greatship Anjali’ at the Colombo Dockyard yesterday.
Picture by Sumanachandra Ariyawansa

CDP which has undertaken 33 per cent of shipbuilding work of Greatship India conforms to all international ship building standards.

This is the first of an order for two anchor handling tug supply vessels ordered by the company and will have further repeat orders, Sheth said.

He said this is the first time that CDP built such a large vessel and this would be a stepping stone to go for major ship building activities by the company to compete with other international companies.

CDP Managing Director/CEO, Mangala Yapa said they have the capability of building modern anchor handling vessels and to supply cargo to the offshore installations situated worldwide.

“I appreciate the commitment of the Sri Lankan workers at CDL and they will receive a special bonus of Rs.1 million as their welfare” he said
This is a first in the maritime industry of Sri Lanka a mega project of this magnitude has been awarded by Great Ship (India) Limited to CDL.

This also the largest ship built by a local company, Yapa said. He said this is the largest vessel built to an international company.

They expect more orders from other countries in the world. The company took 15 months to build the ship at their yard.

Yapa said Colombo is popular as a bunkering and ship repairing centre in the region but could position as a major ship building centre in the region.

Entreprise Development Minister Mano Wijeratne said Sri Lanka is now on the correct track to achieve rapid economic development.

He said there would be plenty of opportunities for the ship building industry with the coming up of major ports such as Hambantota, Trincomalee and Colombo South harbour expansion project.

Greatship (India) Limited is the largest private owned shipping company in India.
:banana::banana::banana::banana::banana::banana:
DN (http://www.dailynews.lk/2008/01/03/bus02.asp)

Nice stuff, will they receive another yard or so for expansion in the new colombo south port?

Nice stuff, will they receive another yard or so for expansion in the new colombo south port?

They have to,,,, in order to keep the momentum^^^^

http://i11.tinypic.com/8f3q0rq.jpg

Reconstruction and building of large scale ships and other maritime vessels inside the Colombo Port have seen a tremendous increase during the first 11 months of 2007.

Colombo Dockyard Limited (CDL) located in the Colombo Port had repaired 157 various types of vessels during this period against 125 in the same 2006 period.

All these repaired ships and vessels belong to the public and private sectors of India, Pakistan, Maldives, Bangladesh, Singapore, Greece, United Arab Emirates, Saudi Arabia, Netherlands and Thailand, CDL said.

Besides these repair activities during the period, CDL has newly built and handed over two Pilot Launches, two Fisheries Patro Vessels and one Tug Boat making a total of five new vessels.

CDL is also expected to implement ship repair and construction on a wider scale once the Hambantota Port Project is completed.:banana::banana:

http://i10.tinypic.com/6qc6e68.jpg
Picture shows a scale model of the Greatship Anjali being handed over to the President. K. M. Sheth - Executive Chairman Great Eastern Shipping Co. (left) and Mangala P B Yapa - Managing Director/CEO of Colombo Dockyard PLC (extreme right), handing over the model to president.

ST (http://www.sundaytimes.lk/080106/FT.html)

Excellent stuff CDL, why hasn't any other company entered the ship building and repair sector, is due to it being an expensive business or has it got to do with lack of proper infrastructure...

Excellent stuff CDL, why hasn't any other company entered the ship building and repair sector, is due to it being an expensive business or has it got to do with lack of proper infrastructure...

Lack of experience & also very expensive to get it started:)

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By Ravindu Peiris

Sri Lanka Ports Authority (SLPA) Chairman Saliya Wickramasuriya said that “wishful thinking” based on superior geographical location will not get Sri Lanka the status of a Maritime Hub.

“Wishful thinking based on superior geographical location will not cut it in today’s global world” he said.

Sri Lanka was ranked 92 in the Logistics Development Index (LDI) behind Singapore which has been ranked first, India at 39, Malaysia at 27 and Indonesia at 43. Wickramasuriya pointed out that logistics and supply chain management excellence together with a custom made investment climate for the specific areas is a mandatory requirement for Sri Lanka to achieve her full potential in logistics. In order to ascend from this position a core group of representatives from the government, industry and policy bodies has convened itself with a view to focussing on the common areas of business potential for all stakeholders to critically examine their defects realistically and impartially. This group intends to structure an action plan so that the goal should be that Sri Lanka aspires to full maritime hub status. This plan is then to be translated into individual projects and tasks so that the government’s development objectives can be achieved by a complete partnership of public and private sectors both local and international.

The chairman also revealed that the port of Colombo achieved a 10 percent increase in container volume and a 3 percent increase in conventional cargo tonnage in 2007 over 2006. “Provided that we overcome some operational constraints and implement some key projects we should be able to sustain this growth in 2008.” According to him the essential milestones towards achieving this target are the opening of the North harbour entrance to streamline ship movements, the replacement of ageing machinery by expedited procurement, the implementation of 4 new feeder vessel berths, the commissioning of the new Terminal Management System and the implementation of a more efficient shift and gang system.

Wickramasuriya confirmed that priority has been given to the port in Kankasanthurai (KKS). “At the moment all essential goods and general cargo reaching the Jaffna peninsula are transported by sea and offloaded at KKS. Jaffna export produce also reaches Colombo in the same way” he said. In order to facilitate this exchange the SLPA is constructing a warehouse/market complex in Tellipilai which is outside the security zone and allows the local civilians unrestricted access to goods from the rest of the island.

The Oluvil Port is to be upgraded to act as a multi-purpose harbour with the capability to handle commercial cargo as well as provide berthing for deep sea fishing craft and cold storage for the catch. “It will also be able to service leisure craft and will contain a facility for the Sri Lankan Navy. The approximate total cost of construction will be US $ 60 million” he said.

Furthermore he divulged that the first phase of the construction of the Hambanthota Port which commenced last year is accelerating. “In approximately 3 years we will complete the marine breakwater, entrance channel, main harbour basin and two terminals. One will be for conventional cargo and the other for petroleum products.” He also stated that there will be an oil storage farm adjacent to this jetty to facilitate the provision of bunkers, ships and interim storage of imported crude oil for the proposed refinery in the vicinity.^^^^

DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=4368)

Nice news...

A shopping complex and an art gallery will be set up at the Colombo Port premises to cater to crew members of ships docking in Colombo and tourists arriving by ship.

The Sri Lanka Ports Authority has made this decision on a concept of Ports and Aviation Minister Chamal Rajapaksa to put unutilised buildings and space in the Colombo Prot premises to profitable use.

A Ports and Aviation Ministry communique said nearly 1,000 foreigners arrive at the Colombo Port daily in addition to a minimum of two passenger ships calling at the Port monthly.

Minister Rajapaksa has directed officials to ensure that these foreigners including tourists arriving by ship be provided shopping and other cultural facilities similar to those available at the Bandaranaike International Airport.

The co-operation of the Sri Lanka Tourism Board should also be obtained for this as it would help boost the tourist industry, the Minister said.

DN (http://www.dailynews.lk/2008/01/26/news21.asp)

nice news............any news about colombo port expansion project?

nice news............any news about colombo port expansion project?
Not just yet, hopefully it is being developed up to next level!

Nice idea...

By Deepal V. Perera

The Sri Lanka Ports Authority announced yesterday that it will be launching a massive multi million dollar modernization plan in order to make the Colombo Port one of Asia’s best.

The Sri Lanka Ports Authority Executive Director Dr. Sanjaya Senarath told Daily FT yesterday that the modernization plans include the setting up of a dry port at Bloemendhal Road, purchasing of new gantry cranes and four transfer cranes, putting the existing land space at the Colombo port for optimum use and setting up a new long term master plan in order to make Colombo port the best port in Asia..

The idea of setting up of the dry port came about to give meaningful long term answers the problem of container carrier traffic pilling up in front of the main gate of the Colombo Port. At the moment we have about 26 acres of land at Bloemendhal Road which would be turned into a dry port and all the container traffic will be channeled there.

According to the Executive Director once the dry port comes into operation all the out bound and inbound containers will be transported to the dry port and thereafter all the paper work will be handled from there.

“In order to make the port handling more efficient we are also in the process of finalizing plans to bring down new gantry cranes and transfer cranes. At the moment almost all the gantry cranes in the Colombo port are almost 20 years old and they need to be replaced with new ones,” he said.

Speaking on the initialization of the land especially at the Colombo port Dr. Senarath said that the Authority had identified that certain offices could be removed from the port and operated from elsewhere.

“We have identified that offices like the mechanical and engineering units could function from outside the port premises and thereafter utilize that space for other tasks. In terms of utilising land we have proposed set up a modern passenger terminal for cruise ships. At the moment there is no proper terminal for the passengers arriving Sri Lank via the Colombo Port. At present the facilities are not on par with the required standards and there is a need to build a new terminal. Last year alone 30 cruise ships came to Sri Lanka and we want to develop this area in order to attract more passenger ships to Sri Lanka,” he said.

Speaking on the launching of the new mission and vision plan Dr. Senarath said that the new master plan is expected be completed shortly and will be implemented within three months.

Speaking on how to increase the efficiency of the workers at the Colombo port the Executive Director said that according to the new master plan every employee will be given a work duty detailing his duty task.

“When looking at the past there was a tendency for the workers and the trade unions to launch strikes for slightest problem. Last year we signed an MOU with trade unions on how to solve problems without disrupting work of the port. The MOU is very much a success and now we have a continuous dialogue with the trade unions and the workers for the smooth operation of the port,” he said.

Speaking on the over staffing situation at the port Dr. Senarath said that there are about 13,500 employees at the Colombo port and there is an excess of 3500 employees.

“The excess staff is a problem, but we are not going to reduce the excess numbers and is now working on how to get the maximum out of every worker. Therefore we are now in the process of introducing three shifts on a daily basis. We are also looking forward to use these excess workers in the Colombo Port southern Development Project. On the other hand we are now gearing to meet the demand for the completion of first stage of the Hambantota Port and we are look forward to channel these workers there as well.,” he said.

Speaking on the revenue of the Colombo Port Dr. Senarath said that last year alone the Colombo Port handled 3.4 million containers while in 2006 the port generated a total revenue of Rs. 2,200 milion. He said that the increase of revenue for 2007 would be by 10%. “We are looking forward for March end to see our actual performance for last year,” he said.

DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=4987)

^^^^^^^^:cheers::cheers::cheers:

Awesome...

Tue, 29 January 2008 18:56:23
LBO >> Transport
Rate Hike
29 January 2008 12:51:02
Sri Lanka exporters face prospect of higher freight costs


Jan 29, 2008 (LBO) – A grouping of shipping lines calling at Colombo port have given notice of a sharp increase in freight rates to Europe, citing rising fuel prices and port delays in the region.

But exporters have raised doubts whether the 19 container shipping firms, known as the India, Pakistan, Bangladesh, Ceylon (IPBCC) Conference, operating between the Indian subcontinent and Europe, could sustain the higher rates.

The London-based IPBCC has said rates for a 20-foot container will rise by 200 dollars and for a 40-footer by 400 dollars from February 1.

The lines have also warned that further rate increases could be imposed from 1 April and 1 June to offset rising fuel prices and congestion at ports in the sub-continent.

South Asian ports, including Colombo, have seen a surge in cargo owing to India's trade boom.

On some days the arrival of a large number of ships within a short period forces the vessels to idle while waiting for a berth, raising costs for the lines.

Exporters said the announced freight rate hike is significant and could affect the cost of shipping goods to European markets if the lines go through with the increases.

But they also said they doubted the lines' ability to go ahead with the rate hike as the shortage of space that had affected the market a few months ago had eased.

"Shippers don't take it that seriously because rates will depend only on demand and supply. If shipping space is available then rates will come down. But if there's more demand than supply then rates will go up," said a member of the Sri Lanka Shippers' Council.

"But now container space is freely available. So in our opinion this rate hike will not be successful."

The proposed rate increase comes a few months before the disbanding of the IPBCC Conference owing to changes in European regulations.

The IPBCC will cease to exist from October as the European Commission has decided to repeal the anti-trust immunity given to such conferences or groups operating from Europe.

Liner conferences were given antitrust immunity under regulations for the ocean transport industry that allowed them to co-operate in setting rates and services.

But shippers have long campaigned against the practice saying it went against free market principals and that the shipping lines were operating as cartels that fixed prices.



http://www.lankabusinessonline.com/fullstory.php?newsID=1943340257&no_view=1&SEARCH_TERM=7

Feb 08, 2008 (LBO) – A multi-million dollar project to build a new container port in Colombo is on track despite lengthy delays, a Sri Lankan government minister has assured the island's shipping community.

The government plans to build a new deep-water port next to Colombo, called the Colombo South Port, as well as build a new port in southern Hambantota, even closer to the shipping route which runs around the island's south coast.

Construction work has already begun on the Hambantota port with Chinese funds, leading to doubts in the local shipping community whether the new Colombo South Port, urgently required to expand capacity to meet surging cargo volumes, was being given the priority it deserves.

Hambantota is one of the island's most neglected districts where unemployment and poverty levels are high. It is also the home of the country's president, Mahinda Rajapakse.

"Even though there may be doubts that the South Port is not moving fast enough, the government wants to develop both ports," justice minister Dylan Perera told the forum organised by the Company of Master Mariners with the support of the Nautical Institute.

"It's not that the South Port has been stopped and Hambantota is moving."

Minister Perera stood in for ports minister Chamal Rajapakse, the brother of the president, who was expected to address the forum. The minister did not say why the Colombo project was delayed.

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

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

"Sri Lanka is well placed and India does not have the locational advantage," Perera said.

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

Among the top contenders to build and operate the new Colombo terminal are Port of Singapore Authority and Hutchison Port Holdings.

The government had promised to select the successful bidder as far back as last September but has still not done so despite numerous assurances.

Meanwhile the ADB loan for the breakwater is being held up as it is conditional on the award of the container terminal contract.

damn it.... could they hurry up and bury the red tape.

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

having knowing that... we should be like "The" place that connects the east and west!

i'm just frustrated as to why everything has to move at snails pace, when it comes to development.

The Sri Lanka Ports Authority (SLPA) is determined to award the Colombo South Port Development Project to Hutchison of Hong Kong, going against the recommendations made by the Cabinet-Appointed Negotiating Committee (CANC) and the Technical Evaluation Committee (TEC).

Originally, there were five bidders for the US$ 400 million port expansion project and three bidders were subsequently short-listed.

According to the TEC report, the joint venture between Aitken Spence and Port of Singapore Authority was ranked number one with 78 marks, while Hutchison Port Holdings of Hong Kong came in second with 69 marks and the joint venture between Hayleys and the French-based CMA-CGM was placed third with 60 marks.

The criteria for evaluation were approved by the CANC, comprising Ports Ministry Secretary Tilak Collure, Investment Promotion Ministry Secretary Thosapala Hewage, Deputy Treasury Secretary Sumit Abeysinghe and SLPA Chairman Saliya Wickremasuriya.

Accordingly, the first three bidders were selected to submit their financial proposals.
In their financial proposals once again the Aitken Spence and Port of Singapore Authority joint venture came first, quoting US$ 195.6 million in net present value of the minimum royalties to be given to the SLPA, while the second bidder, Hutchison of Hong Kong, quoted US$ 173.5 million, and the third bidder quoted US$ 99 million.

Following the evaluation, the TEC recommended Aitken Spence and Port of Singapore Authority joint venture as the preferred bidder entitled for the award of the contract.

The recommendations made by TEC were accepted by three members out of the four of the CANC. The dissenting member was Wickremasuriya.

It is learnt that the position taken up by Wickremasuriya was that Hong Kong based Hutchison was giving a better deal to SLPA by offering many other benefits outside the original requirements.

Since the SLPA Chairman made strong objections over the selection by the majority of the committee, the other three members of the CANC requested the SLPA Chairman to present his concerns over the matter.

Subsequently, the SLPA Board of Directors came up with its recommendations as to why the tender should be awarded to Hutchison of Hong Kong.

The Board said:
a) Make Colombo the port of preference for shipping lines by offering state-of-the-art facilities and services.
b) Penetrate the Indian market by directly marketing the Colombo Port to end users.
c) Build relationships with Indian ports in competition to those networks that seek to divert transshipment cargo to other hubs.
d) Operate the south harbour in partnership with an international operator possessed of the capacity to compete with other major regional hubs in assisting Colombo to grow. This partnership should not preclude the SLPA from expanding its own activities in anyway.

Based on the information presented to them, the SLPA Board said that it was of the opinion that at this time the greatest coincidence of long-term objectives between the SLPA and the short-listed bidders, and therefore the greatest chance of realising the full potential of our unique geographical location, exists in a partnership with Hutchison.

The board paper was attested by Wickremasuriya, Kamal Ratwatte, B.M.S. Batagoda, Asanga Abeygunasekara, S.A.C.S.W. Jayatillake, Prasanna Kulatunga, Sanjaya Sedarasenarath, W.G. Samaratunga and R.M.B. Wickrema.

However, the board in its reports stated that Hutchison Port Holdings was precluded from bidding for terminals in Indian home ports by Indian Government policy.

Though the board referred to the Indian policy in precluding Hutchison, it did not, however, refer reasons for the decision. It is now known that the reason was due to national security concerns of the Government of India.

Shipping sources meanwhile said that 90% of the transshipment cargo to be handled by the south port would be to and from India.

On the other hand, shipping circles in Colombo were perturbed by the decision of the SLPA, which had considered various other benefits outside the request for proposal, which seem to be hypothetical.

In the meantime, it is learnt the matter has already gone before the Attorney General for an opinion and it is stated that the government is unable to act outside the original requirement. Meanwhile, the Asian Development Bank, which is funding the project, has withheld the funds since the government has failed to adhere to the deadline of January 24.

The government has now asked for an extension of three months to issue the letter of intent.
One salient point shipping sources pointed out is that the Mahinda Chinthana is to give high priority to local entreprenuers. However, the recommendation of the SLPA goes against the spirit of the Mahinda Chinthana, as it has totally ignored the two bidders with a majority Sri Lankan participation.


TECS required to submit to procurement committees

President Mahinda Rajapaksa has submitted a memorandum to the cabinet, which required all Technical Evaluation Committees (TECs) to submit to procurement committees on material and information that may be relevant, among other factors, to ensure that national interest is given priority in awarding tenders.
This is in addition to the technical aspects evaluated by the TEC.
The President has also said that the procurement committee is required to explicitly recognise national interest when submitting tender outcomes to the cabinet for approval.

Nation (http://www.nation.lk/2008/02/10/news19.htm)

This should give to Aitken Spence :)

I dunno, I don't really care who gets it aslong as it is completely as early as possible, reaps in benefits to Sri Lanka and underlines and further increases Colombo's status to a Regional Mega Hub for South Asia, the undoubted No.1 in South Asia...

The international governing body on container security, International Container Security Organisation (ICSO) has commended the Colombo port as one of the best ports in the world with the availability of crucial global compliances such as the International Ship and Port Facility Security Code (ISPS Code) and Container Security Initiative (CSI).

The Director General of the ICSO Stefaan Vermeire made these comments during his presentation on ‘Container Security Devices and Container Surveillance” made at the seminar titled “Colombo 2010: An Emerging Regional Mega Port” organized by the Company of Master Mariners of Sri Lanka on Friday.

“There is a good future for Colombo due to its location in the international shipping route. On the other hand in today’s world the ships are getting bigger and bigger and the ports which can handle these ships are less. Those ports which can accommodate these ships become winners and those cannot become carriers of yesterday. In that respect security wise the Colombo port can now compete with other international ports focusing itself for a bright future. Therefore I see that Colombo is in the right track,” he said.

Mr. Vermeire also said that though there is an international mandatory dead line until 2012, for all the ports in the world to get CSI compliance and Sri Lanka has already complied five years ahead.

Speaking on the current trends in relation to international container security, Mr. Vermeire said that security of the world had changed since the 9/11 incident.

“Whether we like or not the 9/11 incident changed the security of USA and the rest of the world into a new dimension. The introduction of the ICSO and CSI is a direct result of 9/11 and is used to protect the ships and ports all over the world.

In that sense the security of the containers and goods tracking systems, detecting tampering and other issues become very important in the international shipping trade.” “This require smart gadgets coming up to the doors of the containers with satellite communication and so on. On the other hand all these technologies are not compliant with each other. In that respect the role of the ICSO come into action. What we do is we bring stability in exchanging of data of the containers, its status and tracking service,” he said.

Sri Lanka Ports Authority (SLPA) Additional Managing Director Capt. Nihal Keppetipola delivering the key note address at the seminar said that the Colombo Port had spent US$ 50 million in getting ISPS compliancy and CSI compliancy for container scanning.

“The Port of Colombo has now achieved the Hub Port status in the South Asia Region and is ranked 29th in the international ranking of Container Ports. Thus we have identified the changes in the world of shipping and in order to capture the growing market and keeping abreast with the supply chain demands, we launched the Colombo Port Expansion Project and Hambantota New Port Project .

Capt. Keppetipola also indicated new measures taken to the development of a Logistics Centre “Cargo Village” in a 22 acres area with a rail and road access where total logistics operations and value addition will be provided by SLPA.

Deputy General Manger of Haskoning India Private Limited Mustaq Merekar who was a guest speaker at the seminar spoke on Trends in Indian Container Terminal Development and LLC Dubai Inter City Regional Accounts Manager Ziad Banna spoke on Delivering Real time Visibility of port performance to operators and customers.

DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=6231)

I dunno, I don't really care who gets it aslong as it is completely as early as possible, reaps in benefits to Sri Lanka and underlines and further increases Colombo's status to a Regional Mega Hub for South Asia, the undoubted No.1 in South Asia...

Yeh I totally agree with you here. We have to remember that both bidders are world class port companies. However PSA does own rival ports in India, unlike HPH (to my knowledge).

Yeh I totally agree with you here. We have to remember that both bidders are world class port companies. However PSA does own rival ports in India, unlike HPH (to my knowledge).

Will that make HPH more willing to invest in Colombo? I'm afraid SPA make go for the "Emirates approach" and try and make the Colombo port compliment their ports in India, rather than compete against them. We want to be the "hub of South Asia", not just another good port.

Will that make HPH more willing to invest in Colombo? I'm afraid SPA make go for the "Emirates approach" and try and make the Colombo port compliment their ports in India, rather than compete against them. We want to be the "hub of South Asia", not just another good port.

It could be a reason why the contract award is so delayed (ie. they have to consider all of these facts). However im sure that if PSA wins the port it should be alright as Aitken Spence is in its consortium and the fact it has a good track record so far. HPH also has a good track record in other overseas projects and is the biggest port operator in the world (to my knowledge).

The Minister said the work on the Harbour is being fast tracked. More than 400 people displaced by the project have been provided land in the new town where they are putting up their houses. The Minister pointed out that the Tangalla-Kataragama main highway is expected to be closed for traffic in March when the new road will be opened. But at the present pace of work will be completed during this month. He was confident that this work will be completed in advance and the harbour will be able to contribute to economic development of the country as well as in the area.

The Minister was speaking after inspecting the progress on the work of the harbour. Construction of the breakwater is due to be undertaken by April. Work on the harbour spanning 2000 hectares is due to be completed within three stages. The access route to the harbour will be 10 metres deep and will be able to handle large ships. Hambantota District Secretary R.M.C.B . Meegasmulla and many officials joined in the inspection tour.

ITN (http://www.itn.lk/news_06_20080212.html)

The Container facility at the Colombo Port is to be enhanced at a cost of US$19.4 million. This project has obtained the green light from the Cabinet through a memorandum submitted by Ports and Aviation Minister Chamal Rajapaksa.

The annual estimated additional revenue expected from the proposed enhancement stands at an even 40% which will be approximately US$21.9million. This means the investment made by the Sri Lanka Ports Authority (SLPA) will be paid back in less than 11 months.

Cabinet has also approved the appointment of a CAPC and a TEC to administer the procurement of four Mobile harbour cranes, and for the purchase of these cranes will be made directly from three principal manufacturers M/s Reggiane of Italy, M/s Gottwald of Germany and M/s Leibherr of Germany.


DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=6673)

now that's good news. ROI in 11 months.. it's a no brainer.

Negotiations on with ADB to de-link funding of US$ 300 million for Breakwater from Terminal Tender

President Mahinda Rajapaksa has cancelled the controversial tender for the Colombo Port’s new terminal, intensely fought by local and global giants while fresh bids are to be called soon.

Sources said that the move by the President follows allegations of favouritism and various drawbacks and differences of opinion over the process, as well as conditions in the Request for Proposals. It is learnt that the Attorney General’s Office too had cautioned the President, while at least two bidders have taken the matter up in Courts as well. There are also various warnings issued by shipping experts over actual interests of bidders or consortia partners.

The South Harbour will certainly be the largest development project in Sri Lanka’s history, with a total investment estimated in excess of US$ 1 billion. The country is already nearly two years late with the project, and further delay would seriously threaten Colombo port’s hub status in the future. It was estimated that, if work starts in early 2008, the first phase could be completed by 2011.

In the run up to the awarding, there was allegation that global giant Hutchison Ports of Hong Kong was being favoured, going against the recommendations made by the Cabinet-Appointed Negotiating Committee (CANC) and the Technical Evaluation Committee (TEC).

According to the TEC report, the joint venture between business tycoon controlled Aitken Spence and Port of Singapore Authority (PSA) consortia was ranked number one with 78 marks, while Hutchison Port Holdings came in second with 69 marks and the joint venture between Hayleys-Carsons and the French-based CMA-CGM was placed third with 60 marks.

In their financial proposals, once again, the Aitken Spence-PSA came first, quoting US$ 195.6 million in net present value of the minimum royalties to be given to the SLPA, while the second bidder, Hutchison quoted US$ 173.5 million, and the third bidder quoted US$ 99 million. Following the evaluation, the TEC recommended Aitken Spence-PSA joint venture as the preferred bidder entitled for the award of the contract. However, the SLPA recommended Hutchison, based on its own strategic assessment, Hutchison was best suited.

Other bidders included John Keells Holdings-South Asia Gateway Terminals (which manages the Queen Elizabeth Quay in Colombo port) in partnership with Pembinan Ridzai Berhard, the owning company of Malaysia’s successful Westport; and global carrier Hanjin Shipping with its local agents Navigation Maritime.

Sources said that a high level team from the ADB, was in town last week, where the decision to cancel the Tender for the Terminal, was discussed, since the multilateral donor has committed US$ 300 million for the construction of the Breakwater. The release of funding was on the condition that the government maintains an open and competitive bidding for the Terminal and issuance of letter of invitation to negotiate the concessions with the most qualified bidder.

Following the decision to cancel the Terminal Tender and call for fresh bids, the ADB team has reportedly agreed to reconsider the condition, subject to approval from its Executive Board. Though the process on Terminal Tender would be started afresh, the government is keen to proceed with the Breakwater, contract for which has been awarded to Hyundai.

The specific project to which Expression of Interests were originally called, involves building a Terminal with three berths that could handle around 2.4 million Twenty-foot Equivalent Units (TEU). Industry experts estimate the Terminal to cost around or over US$ 500 million.

This year, the Colombo Port is estimated to handle around 3.5 to 3.7 million TEUs. This is a satisfactory growth compared with slightly above 3 million TEUs posted in 2006 and 2.5 million TEUs in 2005.


thebottomline (http://www.thebottomline.lk/2008/02/20/B34.htm)

Fingers crossed, time is running OUT...

Feb 24, 2008 (LBO) -- Sri Lanka will cancel a controversial deal for a container terminal at Colombo port and bring new conditions after a consortium led by the Port of Singapore Authority (PSA) won a financial bid, a media report said.

The deal hit newspaper headlines with port workers alleging that state-run Sri Lanka Ports Authority (SLPA) was influencing the deal in favour of Hutchison Port Holdings of Hong Kong, whose bid had come second on a ranking.

Bids for a concession to run a container terminal in the expanded Colombo Port was originally called on February 23, 2007 to close on June 12, 2007, a Sri Lanka's ports ministry document published in The Nation newspaper said.

The ministry is headed by Sri Lanka President Mahinda Rajapakse's brother, Chamal.

Hutchison Port Holdings and PSA with Sri Lanka's Aitken Spence were two of five parties that responded to a request for proposals.

PSA – Aitken Spence was ranked first followed by Hutchison while another consortium made up of Sri Lanka's Hayleys and Carson's groups and Terminal Link SA, came third.

Port engineers had then written a letter to the ports minister alleging that the Ports Authority was "hell-bent" on awarding the project to Hutchison despite a "majority" of a negotiation committee appointed by the government and a technical evaluation committee recommending that the concession be given to PSA.

Port engineers said the PSA bid quoted a discounted value of 195.6 million dollars in fees, while Hutchison quoted 173.5 million and Hayleys 99 million dollars.

A complaint regarding the deal has also been sent to Sri Lanka's bribery commission, media reports said.

A few days later the bribery chief was suddenly "transferred" to the presidential secretariat, sparking another controversy.

On January 20, 2008 Sri Lanka's cabinet of ministers had approved a document on "Securing National Interest" in the terminal award, according to a second cabinet note published by The Nation newspaper Sunday, dated February 21, 2008.

The second note said a cabinet appointed negotiation committee (CANC), which was in charge of the concession award, had sought legal advice before making a final decision based on the views of Ports Authority "on several other concerns".

The new conditions which allegedly favour Hutchison were not in the original request for proposals (RFP).

"The CANC has however noted that these concerns had not been incorporated in the RFP at the outset and also that it is uncertain whether the considered concerns capture the entirety of the national interest concerns as required in the Cabinet decision dated 30.01.08," the February cabinet note published in The Nation said.

"The CANC has therefore reported (Annex 1) that they are unable to conclusively evaluate the ranking of the short-listed bidders without grave risk of violating the RFP conditions as well as the aforementioned Cabinet decision."

The document sought ministerial approval to "reconstitute" the negotiation committee and call for proposal with new conditions, the report said.

Port engineers in their letter had alleged that authorities sought to consider what was in an unsolicited proposal outside the tender by Hutchison which now gave 248 million dollars.

Meanwhile, PSA had also given an unsolicited proposal with a present value of 259 million dollars.

.

Oh god, what a mess... I just want this port to finally get built, time is running OUT...

The Container facility at the Colombo Port is to be enhanced at a cost of US$19.4 million. This project has obtained the green light from the Cabinet through a memorandum submitted by Ports and Aviation Minister Chamal Rajapaksa.

The annual estimated additional revenue expected from the proposed enhancement stands at an even 40% which will be approximately US$21.9million. This means the investment made by the Sri Lanka Ports Authority (SLPA) will be paid back in less than 11 months.

Cabinet has also approved the appointment of a CAPC and a TEC to administer the procurement of four Mobile harbour cranes, and for the purchase of these cranes will be made directly from three principal manufacturers M/s Reggiane of Italy, M/s Gottwald of Germany and M/s Leibherr of Germany.


DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=6673)

http://i30.tinypic.com/30w7bie.jpg
Four Mobile harbour cranes has called home Saturday morning ^^^^^^^^

Feb 29, 2008 (LBO) – Sri Lanka will call fresh bids for a planned new container terminal in Colombo and is going ahead with a contract to build its breakwater, a senior port official said.

A cabinet appointed negotiating committee that handled the planned new deep-draft port had recommended the cancellation of the original bids, Sri Lanka Ports Authority (SLPA) chairman Saliya Wickramasuriya said.

This was because the committee could not make a clear recommendation without compromising either the request for proposals of the project or a government directive last month on "securing national interest" in major projects, he said.

A consortium led by Port of Singapore Authority (PSA Corp), in which the local Aitken Spence conglomerate has a majority stake, emerged the winner in the bidding round, with Hutchison Port Holdings (HPH) of Hong Kong coming second, according to a ranking.

Local news reports said the cabinet committee was divided in its opinion on awarding the terminal contract to PSA Corp with Wickramasuriya maintaining that the offer by HPH was a better deal.

The cancellation would give at least two listed firms, John Keells Holdings and Hayley another chance to win the terminal deal.

The project has become a major controversy in the island amid fears that further delays could endanger Colombo port's position as south Asia's container transhipment hub.

PSA Corp and HPH are the world's top port operators and both are eyeing the booming Indian container cargo volumes, some of which is transhipped through Colombo.

Colombo is trying to entrench its position as the transhipment hub for Indian cargo with the planned new port.

A lot of Indian transhipment cargo goes through Singapore as well as Dubai.

Plans to build the new Colombo south port, as it is called, have already been delayed by several years but Wickramasuriya said the decision to call for fresh bids for the container terminal project would not jeopardise the project.

"This delay will not prejudice the project in any way because construction work has started," he told LBO.

South Korea's Hyundai won the contract to build the breakwater and do the dredging for the new port, which is to come up next to the existing one.

Work on the container terminal, for which bids have now been cancelled, can only start after completion of the breakwater which is expected to take 15 months.

The Asian Development Bank has given a loan of 300 million dollars for the infrastructure work but disbursement was conditional on the government awarding the container terminal deal in a fair and transparent manner.

The government has held talks with a team of ADB officials who visited Colombo on relaxing the condition to enable the breakwater project to go ahead.

"Discussions between the Asian Development Bank and the government have been positive with the ADB recognising the importance and urgency of the project," Wickramasuriya said.

"With this in mind, the government has confirmed its commitment to the breakwater construction contract and dredging work has already started."

A decision by the ADB's executive board in Manila on the loan conditions is expected shortly.

A team of 17 Korean experts has been in the island for the last two months.
:nuts:
Industry officials said the decision to call for fresh bids would enable the original bidders to submit fresh proposals as well as possibly give time for other major port operators to bid as well.

AP Moller-Maersk, the world's top shipping line, was not among the original bidders, and had reportedly asked for more time when bids were called last year.

The other major port operator which did not bid was Dubai Ports World, which is making huge investments in ports on the Indian sub-continent.

Work on the container terminal, for which bids have now been cancelled, can only start after completion of the breakwater which is expected to take 15 months.

Good to know. And if the other article is correct and the bidding companies did increase their bids significantly, this may not be that bad after all. :)

Yeah, atleast the breakwater is being done, right?

Sun, 2 March 2008 10:42:52
LBO >> Industries
Ship Building
02 March 2008 08:02:01
Sri Lanka ship yard 2007 profits sail over billion rupees


Mar 02, 2008 (LBO) – Colombo Dockyard, Sri Lanka's sole listed ship builder, said net profit for the 2007 financial year shot up 77 percent to 1.1 billion rupees with a steady flow of orders for new buildings and repair work.

The yard, a subsidiary of Japan's Onomichi Dockyard Co. which provides management and technical expertise, said revenue went up to 8.9 billion rupees from 7.5 billion in 2006.

Orders for new vessels from Indian customers as well as a steady flow of repair work have boosted the bottom line.

Colombo Dockyard shares have been heavily traded on the Colombo bourse in recent weeks and the share price has risen on investor anticipation of higher earnings.

The shipping industry is enjoying a worldwide boom on the back of strong economic growth mainly in China and India.

Colombo Dockyard delivered its first anchor handling tug to India's Greatship last December and has launched a second vessel.

The yard has said it is in talks with Greatship on building more advanced vessels for the company's offshore oil industry support services business.


It is also eyeing new local ship building contracts from the navy, the ministry of fisheries and aquatic resources and the Ceylon Petroleum Corporation.



http://www.lankabusinessonline.com/fullstory.php?newsID=771299161&no_view=1&SEARCH_TERM=17

Sun, 2 March 2008 10:42:52
LBO >> Industries
Ship Building
02 March 2008 08:02:01
Sri Lanka ship yard 2007 profits sail over billion rupees


Mar 02, 2008 (LBO) – Colombo Dockyard, Sri Lanka's sole listed ship builder, said net profit for the 2007 financial year shot up 77 percent to 1.1 billion rupees with a steady flow of orders for new buildings and repair work.

The yard, a subsidiary of Japan's Onomichi Dockyard Co. which provides management and technical expertise, said revenue went up to 8.9 billion rupees from 7.5 billion in 2006.

Orders for new vessels from Indian customers as well as a steady flow of repair work have boosted the bottom line.

Colombo Dockyard shares have been heavily traded on the Colombo bourse in recent weeks and the share price has risen on investor anticipation of higher earnings.

The shipping industry is enjoying a worldwide boom on the back of strong economic growth mainly in China and India.

Colombo Dockyard delivered its first anchor handling tug to India's Greatship last December and has launched a second vessel.

The yard has said it is in talks with Greatship on building more advanced vessels for the company's offshore oil industry support services business.


It is also eyeing new local ship building contracts from the navy, the ministry of fisheries and aquatic resources and the Ceylon Petroleum Corporation.



http://www.lankabusinessonline.com/fullstory.php?newsID=771299161&no_view=1&SEARCH_TERM=17

Awesome, more to come, hope they acquire a new facility @ Hambantota port^^^^

Thu, 6 March 2008 18:52:32
LBO >> Shipping & Transport
Long Wait
06 March 2008 18:03:23
Sri Lankan truckers to strike in protest against port delays


March 06, 2008 (LBO) – Container transporters in Sri Lanka Thursday announced plans for a protest action and work stoppage that could disrupt the flow of cargo to and from Colombo port.

The Joint Council of Transporters (JCT) said in a statement their members would commence a protest combined with work stoppage from March 10 to protest against lengthy delays in getting containers into the port.

"The long queues experienced during the last few months and other issues have compelled the trade to take such action," the statement said.

"Although we have communicated to the relevant authorities of our intention we have not received any response from them."

The JCT said they had told shippers, shipping agents, freight forwarders and business chambers of their planned industrial action.

Truck drivers have complained they have had to often wait for 12 hours to be given permission to enter the port.

Sunil Fernando of the Association of Container Transporters, a member of the JCT, said they had written to the SLPA chairman, director general of Customs and the naval area commander, but had not got any response.

He said the problem appears to be caused by strict security measures in place to protect Colombo port from attacks by Tamil Tigers, although it was not possible to be exact.

"We can't pinpoint the cause for the delay. When we ask the Sri Lanka Ports Authority they say the problem is with the navy. When we ask the navy they say it's to do with the SLPA. The ball is passed from one to the other."

The delays resulted in low productivity among container transporters and wasteful fuel consumption.

Truck drivers were also complaining of stress as they had to drive "on clutch and gear" as they inch towards the port entrance, Fernando said.

The port is known to be a key target of the Tamil Tigers who have tried to attack it by sea at least twice in the past.

On the first occasion in the mid-1990s the Tigers used a speed boat and scuba divers but were blown up as they entered the port.

Another attempt last year was thwarted then the rebels were detected in advance.

The Tigers, who have suffered a series of defeats in the north and east against the military in the past year, have vowed to hit economic targets like the port.



http://www.lankabusinessonline.com/fullstory.php?newsID=1458236634&no_view=1&SEARCH_TERM=39

Oh the god damn irony here is killing me. Delaying the port activities more because they are pissed with delays..

"He said the problem appears to be caused by strict security measures in place to protect Colombo port from attacks by Tamil Tigers, although it was not possible to be exact."

So they'd rather have bombs exploding around them than some delays. Maybe they watched too much of the new rambo movie.

Tue, 11 March 2008 21:42:31
LBO >> Transport
Sea Link
11 March 2008 17:22:56
Sri Lanka Hemas gets shipping agency


March 11, 2008 (LBO) – A unit of Hemas conglomerate has got the Sri Lankan agency for Far Shipping Lines of Singapore which is looking at deploying bigger ships and increase services to Colombo port, an official said.

Far Shipping Lines (FLS) currently operates four feeder services connecting the Indian sub-continent and Arabian Gulf with the transhipment port of Colombo, a Hemas statement said Tuesday.

The line serves as a 'common carrier' feeding container cargo from regional ports for transhipment through Colombo by main line vessel operators to markets outside the region.

Head of Shipping at Hemas, Irshad Musheen said Far Shipping is the first shipping agency for the Hemas group which already has the agency for airlines and also is in freight forwarding.

"We're doing market studies to see whether we can increase customers and add more calls by Far Shipping and looking at increasing the capacity of ships," he said.

Hemas has set up a wholly owned subsidiary called Far Shipping Lanka Private Limited for the ship agency business.

Musheen said Hemas would build its "maritime strategy" around the port of Colombo.

"Hemas will also look at Hambantota as the 'port of the future' and look at business avenues in this green field project."

Far Shipping based its services from Colombo, which acts as the line's 'mother port', since its inception in 2002.

Managing Director, Far Shipping Lines, Yu Yong Jung was quoted as saying in the statement said that FSL plans in Colombo are long term.

"Our aim is to build customer confidence over a period of time by establishing regular and reliable service patterns. FSL has maintained services to areas where other operators have not maintained consistent services."



http://www.lankabusinessonline.com/fullstory.php?newsID=25254922&no_view=1&SEARCH_TERM=7

Mar 13, 2008 (LBO) - Sri Lanka's Hemas group wants to expand into ships and port operations after its entry to the sector by starting a shipping agency and capitalize on the island's position on major sea lanes, an official said.

"The group as a policy has decided to invest in the maritime sector," Head of Shipping at Hemas, Irshad Musheen, said.

"We're looking at various options such as asset owning and asset management in the maritime sector."

The group's foray into power generation is already bringing steady returns.

Hemas has operations in consumer products, healthcare, transportation, and leisure and strategic investments

It is also the agent for airlines and has just acquired its first shipping agency, being appointed agent for Far Shipping Lines (FSL) of Singapore.

FSL operates four feeder services connecting the Indian sub-continent and Arabian Gulf with the transhipment port of Colombo.

Musheen said Hemas would venture further into the maritime sector and is also looking at investing in port terminals in Sri Lanka and abroad.

If fresh bids are called for a container terminal at Colombo port Musheen said Hemas would be interested if it had the right partners in place.

The bids for the new container terminal were cancelled by the government as it could not decide between the leading contenders, Port of Singapore and Hutchison Port Holdings.

The government has said fresh bids would be called and that it was going ahead with building the breakwater for the new port.

Musheen said that Hemas would build its "maritime strategy" around the port of Colombo and that it was also interested in the new port coming up in southern Hambantota as well as in Galle harbour.

Hemas Holdings director who heads its transportation division Imtiaz Esufally said in a statement that he was "upbeat" on the maritime potential in Sri Lanka.

"We look forward to working with the Sri Lanka Ports Authority in achieving the full maritime potential Sri Lanka has to offer," he said, adding that Hemas would be looking at investing in several areas in the maritime industry in the near future.

Shipping has become an important business and a key source of earnings for top Sri Lanka's conglomerates such as John Keells Holdings and Aitken Spence, amid a global trade and shipping boom.

They have investments in merchant ships, container terminals, supplying ship fuel and freight forwarding and logistics.

Good and interesting news...

Mar 15, Colombo: An agreement between Sri Lanka Ports Authority (SLPA) and a Danish construction company was signed yesterday to build a new harbour in Oluwil in the Eastern Coast of the Island.

The new harbour is to be set up as a fisheries and commercial harbour. The project at a cost of Euro 46 million is to be completed by the year 2015 under the financial assistance from the Danish government.

According to the government sources, a comprehensive infrastructure development program will be launched parallel to the harbour construction project in the Ampara, Batticaloa and Monaragala districts. The project expects to create over 10,000 job opportunities in the Island’s most underdeveloped areas.

The agreement was signed between the acting chairman of the SLPA and the deputy chairman of the construction company.

Oluvil harbour was a brainchild of late leader of Sri Lanka Muslim Congress Mohammad Ashroff that comes in to fruition through the Mahinda Chinthana program of President Mahinda Rajapaksa.


Saturday, March 15, 2008, 15:25 GMT, ColomboPage News Desk, Sri Lanka.

Interesting, but no further details?

Sat, 22 March 2008 20:47:49
LBO >> Transport
Warning Signs
21 March 2008 23:46:16
Sri Lanka shipping community sounds alarm over new port, equipment delays


March 21, 2008 (LBO) – Sri Lanka's shipping community is getting increasingly concerned over delays in upgrading Colombo port equipment, building a new birth and the opening of another entrance for navigation.

Further delays could endanger Colombo's status as south Asia's transshipment hub especially with India expanding its own ports and building new ones to cater to the cargo boom, shipping industry officials said.

Port customers said the re-opening of the northern entrance channel, closed for years owing to security threats, remains their main and most critical concern.

The closure means that vessels calling Colombo can use only one channel to enter or leave the port, causing delays on days when the number of callers increase or tend to 'bunch up' as the trade calls it.

Sri Lanka Shippers' Council officials and representatives of lines calling at Colombo said the port could face congestion with the number of ship calls increasing.

Ship traffic went up 2.8 percent or by 124 ships to 4,576 vessels in 2007.

"The north entrance is closed permanently so pilots can only bring one vessel at a time," said a Shippers' Council official who spoke on condition of anonymity. "With more vessels calling Colombo, congestion will increase. Some lines have already decided to bypass Colombo."

Big lines like Maersk reduced calls at Colombo and began calling direct at Indian ports last year.

This was partly owing to congestion in Colombo and also because of the cargo boom in India.

Feeder vessel operators said that right now there are no delays but anticipate congestion will start when the south-west monsoon starts in April.

Rough seas brought on by the monsoon means traffic in and out of port will be restricted to periods of good weather.

Port users also note that only one vessel can navigate to berth at the docks at any given time because of the restricted space in the harbour basin and the large size of modern container vessels.

"When people talk of Colombo reaching a capacity crunch by 2012 they are only referring to the land capacity – the number of containers that can be handled within the existing yards in the port," said an official from the Sri Lanka Shippers' Council, which represents importers and exporters.

"But no one is talking of port basin capacity which can now handle only one ship at a time. The turning circle is not enough. So already that capacity is gone."

Furthermore, he noted, the harbour basin can't be dredged any deeper, which means Colombo cannot handle vessels with a capacity of over 8,000 containers with full load.

Modern cargo ships are getting even bigger with 10,000 – 12,000 container capacity ships now being built.

Industry officials said the planned new deep-water port next to Colombo has been delayed by several years and is now delayed even further.

This was after the government cancelled bids for the first container terminal in the new port because of disagreement over awarding the contract.

"The first container terminal of the new port was actually supposed to be operating by 2007 according to the original plan," said a Shippers' Council official. "The project is way behind time."

Representatives of vessel operator also complain that much of the equipment in government terminals at the port is old, break down often and need replacement.

"We have been promised new equipment like cranes for the last 2-3 years but nothing has happened."



http://www.lankabusinessonline.com/fullstory.php?newsID=771839399&no_view=1&SEARCH_TERM=7

Port customers said the re-opening of the northern entrance channel, closed for years owing to security threats, remains their main and most critical concern.

The closure means that vessels calling Colombo can use only one channel to enter or leave the port, causing delays on days when the number of callers increase or tend to 'bunch up' as the trade calls it.

I'd rather have it closed and the harbor safer, than see the terrorists sneak in and carry out an attack on the harbor.

The Ports and Aviation Ministry yesterday said the Colombo Port recorded ever highest monthly container throughput in October 2007 which is 312,815 TEUs. It was 8190 TEUs higher than the last highest monthly throughput (304,625 TEUs) achieved in July 2007.

The Port has handled 2,833,455 TEUs during the first ten month of 2007 reflecting an increase of 11.2% when compared with the last year corresponding volume. Out of this total increase 74.7% (213,872 TEUs) was accounted by transshipment category. The domestic volume has reported an increase of 7.4%

According the sources at the Colombo Port, total cargo tonnage in Colombo port during the first ten months in 2007 has increased to 36, 204 tones, from that of previous year, 32,767 thousand tones reflecting an increase of 10.5% containerised cargo tonnage has recorded a considerably higher growth (13.5%).

This is mainly due to the significant increase in transshipment container cargo tonnage during the period under review.

Similarly, the Sri Lanka Ports Authority and South Asia Gateway Terminal also handled their ever highest volume in October 2007, recording a throughput of 165,043 and 147,772 TEUs respectively.

The previous highest volume of 165,000 TEUs and 141,837 TEUs was reported by Sri Lanka Ports Authority and South Asia Gateway Terminals in August and September 2007 respectively.

The Break Bulk tonnage has declined by 1.8% during the period under review. The decline in Break Bulk cargo was resulted as there were no import in Break Bulk Cement and less import in Break Bulk sugar during the last ten month. Dry Bulk cargo tonnage has increased by 1.2%. Total liquid Cargo tonnage has declined by 3.7% during the period. This is mainly due to the significant decrease in palm oil and Crude Oil imports. Import of palm oil has declined to 178,596 tones from 276,081 tones in the previous year reflecting a decrease of 35.3%. Crude oil import has declined by 19.2% whilst White oil tonnage has increased by 23.1%.

DN (http://www.dailynews.lk/2008/04/05/main_News.asp)

Awesome, but this just further underlines the immense importance of the Colombo Port Expansion and the adverse effects that could follow if this major project is not implementing as soon as possible...

Sri Lanka port project dredging underway, new terminal bids to be called

May 08, 2008 (LBO) – The Asian Development Bank has agreed to change conditions on a loan to the Sri Lankan government to build a new deep-water harbour next to Colombo port, dredging on which is already underway, ADB and government officials said.
Fresh tenders are to be called to build and operate the new port's first container terminal known as the south terminal after the original bids were cancelled last year amid much controversy.

ADB Country Director Richard Vokes said the bank has agreed to a government request to amend the loan agreement to enable the project's harbour infrastructure works, including a new breakwater, to proceed.

"Originally, for the loan agreement to become effective, the government had to issue a letter of invitation for the negotiation of the Concession Agreement to the selected private operator for the South Terminal," he said.

"Under the new agreement, the loan now will become effective immediately, while the government has agreed to award the terminal concession within 18 months after the new effective date," Vokes said in an e-mailed reply to queries from LBO.

The government has also started a new tender process for the terminal project after it cancelled the original one.

"The concept of the project as a Public Private Partnership (PPP) remains unchanged," Vokes said.

"In view of this, selection of the terminal operator following an open competitive procedure in accordance with Sri Lanka’s laws and procedures remains part of the amended loan agreement as well, with award of the concession to be within 18 months."

The Colombo port expansion project is the largest PPP project in Sri Lanka, Vokes said.

"The breakwater construction will now go ahead," he said. "ADB is very pleased to see the physical construction of the project start and looks forward to working with both the government and the ports authority in bringing the project to its successful completion. The project is on track, after a delay of a few months."

The project was delayed last year when the government cancelled bids to build the container terminal as it said it was unable to decide between the two main contenders, Singapore's PSA Corp and HPH of Hong Kong.

Disbursement of the ADB loan was linked to the government awarding the terminal contract through open competitive bidding, and the cancellation delayed the release of the funds.

Meanwhile, Sri Lanka Ports Authority officials said Hyundai had been doing dredging work on the new port since December and site preparation work is in progress.

Fresh tenders for the contract to build and operate the first container terminal in the South Port are expected to be called "hopefully" by July, they said.

The request for proposals is also expected to be changed, officials said.

The government will also try to attract interest from major port operators and shipping lines which did not bid in the original round.

These include Maersk, the world's biggest shipping line, which has a stake in South Asia Gateway Terminals after it acquired parts of the P&O group, and Dubai Ports World, the rapidly expanding Middle Eastern port operator.

Sri Lanka port project dredging underway, new terminal bids to be called

May 08, 2008 (LBO)

Meanwhile, Sri Lanka Ports Authority officials said Hyundai had been doing dredging work on the new port since December and site preparation work is in progress.



This is the good part^^^^

Yeah, hope this FINALLY works out...

Colombo Express
http://i298.photobucket.com/albums/mm262/surej_bucket/5.jpg
http://i298.photobucket.com/albums/mm262/surej_bucket/untitled.jpg

If you were just as flabbergasted as I was when you first saw this picture, here's some info.

http://en.wikipedia.org/wiki/Colombo_Express

^^ for all you know the ship might never even dock in Colombo. :nuts:

^^ for all you know the ship might never even dock in Colombo. :nuts:

It actually does come to Colombo^^

Tuesday,August 23,2005

Colombo Express the world’s largest container ship called at Colombo Port.

Hapag-Lioyd which owns the vessel in a statement said that Colombo was not only an important transshipment hub for the company in the past but it has also remained a key port up to the present day.

“Customers are provided with seven weekly departures providing links with the world’s main economic centres and the Port of Colombo is also a significant transshipment hub for the Indian subcontinent”, the company statement added. This 335m long and 43m wide new giant vessel built at Hyundai heavy Industries in Korea can carry 8,750 TEUs Lined up end to end, the containers would stretch for 53 km. The ship’s engine provides the vessel with a speed of 25 knots or about 50 km/h.

“Colombo Express” has a diesel output of 68,640 kw and generates electricity to supply a fairly large small town. Hapag-Lioyd is the first shipping line to use this kind of innovative and environment-friendly marine diesel.

http://lk2.mofcom.gov.cn/aarticle/chinanews/200508/20050800295226.html

Amazing...

It actually does come to Colombo^^

oh.. my bad. good news then.

By GAVIN RABINOWITZ

HAMBANTOTA, Sri Lanka (AP) — This battered harbor town on Sri Lanka's southern tip, with its scrawny men selling even scrawnier fish, seems an unlikely focus for an emerging international competition over energy supply routes that fuel much of the global economy.

An impoverished place still recovering from the devastation of the 2004 Indian Ocean tsunami, Hambantota has a desolate air, a sense of nowhereness, punctuated by the realization that looking south over the expanse of ocean, the next landfall is Antarctica.

But just over the horizon runs one of the world's great trade arteries, the shipping lanes where thousands of vessels carry oil from the Middle East and raw materials to Asia, returning with television sets, toys and sneakers for European consumers.

These tankers provide 80 percent of China's oil and 65 percent of India's — fuel desperately needed for the two countries' rapidly growing economies. Japan, too, is almost totally dependent on energy supplies shipped through the Indian Ocean.

Any disruption — from terrorism, piracy, natural disaster or war — could have devastating effects on these countries and, in an increasingly interdependent world, send ripples across the globe. When an unidentified ship attacked a Japanese oil tanker traveling through the Indian Ocean from South Korea to Saudi Arabia in April, the news sent oil prices to record highs.

For decades the world relied on the powerful U.S. Navy to protect this vital sea lane. But as India and China gain economic heft, they are moving to expand their control of the waterway, sparking a new — and potentially dangerous — rivalry between Asia's emerging giants.

China has given massive aid to Indian Ocean nations, signing friendship pacts, building ports in Pakistan and Bangladesh as well as Sri Lanka, and reportedly setting up a listening post on one of Myanmar's islands near the strategic Strait of Malacca.

Now, India is trying to parry China's moves. It beat out China for a port project in Myanmar. And, flush with cash from its expanding economy, India is beefing up its military, with the expansion seemingly aimed at China. Washington and, to a lesser extent, Tokyo are encouraging India's role as a counterweight to growing Chinese power.

Among China's latest moves is the billion dollar port its engineers are building in Sri Lanka, an island country just off India's southern coast.

The Chinese insist the Hambantota port is a purely commercial move, and by all appearances, it is. But some in India see ominous designs behind the project, while others in countries surrounding India like the idea. A 2004 Pentagon report called Beijing's effort to expand its presence in the region China's "string of pearls."

No one wants war, and relations between the two nations are now at their closest since a brief 1962 border war in which China quickly routed Indian forces. Last year, trade between India and China grew to $37 billion and their two armies conducted their irst-ever joint military exercise.
http://i29.tinypic.com/2dllwzd.jpg
Still, the Indians worry about China's growing influence.

"Each pearl in the string is a link in a chain of the Chinese maritime presence," India's navy chief, Adm. Sureesh Mehta, said in a speech in January, expressing concern that naval forces operating out of ports established by the Chinese could "take control over the world energy jugular."

"It is a pincer movement," said Rahul Bedi, a South Asia analyst with London-based Jane's Defense Weekly. "That, together with the slap India got in 1962, keeps them awake at night."

B. Raman, a hawkish, retired Indian intelligence official, expressed tshe fears of some Indians over the Chinese-built ports, saying he believes they'll be used as naval bases to control the area.

"We cannot take them at face value. We cannot assume their intentions are benign," said Raman.

But Zhao Gancheng, a South Asia expert at the Chinese government-backed Shanghai Institute for International Studies, says ports like Hambantota are strictly commercial ventures. And Sri Lanka says the new port will be a windfall for its impoverished southern region.

With Sri Lanka's proximity to the shipping lane already making it a hub for transshipping containers between Europe and Asia, the new port will boost the country's annual cargo handling capacity from 6 million containers to some 23 million, said Priyath Wickrama, deputy director of the Sri Lankan Ports Authority.

Wickrama said a new facility was needed since the main port in the capital Colombo has no room to expand and Trincomalee port in the Northeast is caught in the middle of Sri Lanka's civil war. Hambantota also will have factories onsite producing cement and fertilizer for export, he said.

Meanwhile, India is clearly gearing its military expansion toward China rather than its longtime foe, and India has set up listening stations in Mozambique and Madagascar, in part to monitor Chinese movements, Bedi noted. It also has an air base in Kazakhstan and a space monitoring post in Mongolia — both China's neighbors.

India has announced plans to have a fleet of aircraft carriers and nuclear submarines at sea in the next decade and recently tested nuclear-capable missiles that put China's major cities well in range. It is also reopening air force bases near the Chinese border.

Encouraging India's role as a counter to China, the U.S. has stepped up exercises with the Indian navy and last year sold it an American warship for the first time, the 17,000-ton amphibious transport dock USS Trenton. American defense contractors — shut out from the lucrative Indian market during the long Cold War — have been offering India's military everything from advanced fighter jets to anti-ship missiles.

"It is in our interest to develop this relationship," U.S. Defense Secretary Robert Gates said during a visit to New Delhi in February. "Just as it is in the Indians' interest."

Officially, China says it's not worried about India's military buildup or its closer ties with the U.S. However, foreign analysts believe China is deeply concerned by the possibility of a U.S.-Indian military alliance.

Ian Storey of the Institute of Southeast Asian Studies in Singapore said China sent strong diplomatic messages expressing opposition to a massive naval exercise India held last year with the U.S., Japan, Singapore and Australia. And Bedi, the Jane's analyst, added "those exercises rattled the Chinese."

India's 2007 defense budget was about $21.7 billion, up 7.8 percent from 2006. China said its 2008 military budget would jump 17.6 percent to some $59 billion, following a similar increase last year. The U.S. estimates China's actual defense spending may be much higher.

Like India, China is focusing heavily on its navy, building an increasingly sophisticated submarine fleet that could eventually be one of the world's largest.

While analysts believe China's military buildup is mostly focused on preventing U.S. intervention in any conflict with Taiwan, India is still likely to persist in efforts to catch up as China expands its influence in what is essentially India's backyard. Meanwhile, Sri Lankans — who have looked warily for centuries at vast India to the north — welcome the Chinese investment in their country.

"Our lives are going to change," said 62-year-old Jayasena Senanayake, who has seen business grow at his roadside food stall since construction began on the nearby port. "What China is doing for us is very good."

DM (http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=17264)

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Chairman of the Sri Lanka Ports Authority Saliya Wickramasuriya exchanging the project proposal with China Huanqiu officials.

The unsolicited project proposal for construction of the bunkering facility and the tank farm at the Hambantota Harbour forwarded by the China Huanqiu Contracting Engineering Corporation has been given approval after thorough evaluation by the Project Committee and the Cabinet Appointed Negotiations Committee. Cabinet approval was granted for this project.

According to the agreement, the total value of the project would be US$76.5 million and the project is scheduled to be completed within a time period of two years.

Under this project a set of fuel tanks; bunking facilities, aviation fuel storage facilities and LP gas storage facilities will be constructed.

According to the terms of reference, the above facilities will be constructed enabling to operate them independently with separate loading arms and pipe line system which connects the oil and gas jetty. Construction of the jetties in this regard has already been commenced under works of the Hambantota Port Project.

It is also proposed to obtain loan facilities for this construction works from the Exim Bank in China and construction works are scheduled to be completed by the year 2010.

Hambantota Port Development Project consists of four stages. The whole project is expected to be completed within 15 years. Initially Hambantota Port is planned as a Service and Industrial Port. Subsequently, it could be developed as a Transhipment Port in the next two stages to handle 20 million containers per year.

Under the first phase of the project, an industrial port with a 1,000m jetty and an oil refinery estimated to cost US$1 billion will be constructed at Hambantota. The proposed port will stimulate development of harbour-related industries such as ship repairs, ship building, bunkering, break bulk, power generation and a free trade zone.

Senior official of Sri Lanka Ports Authority (SLPA) said the construction of the new port when completed will directly provide 6000 new jobs and 50,000 to 100,000 jobs as indirect employment. A large number of these openings were for skilled workers who were lacking in this area.

Therefore, steps were being taken to train people in the required skills at special vocational training centres, so that the skilled workforce will be available when the port begins functioning.
:banana::banana::banana::banana::banana::cheers::cheers::cheers::cheers:
DN (http://www.dailynews.lk/2008/06/19/bus01.asp)

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Smaller States like us has to use this opportunity very strategically. Good article by the way saraprobe. Thanks

June 20, 2008 (LBO) – The Sri Lanka Ports Authority has called for bids to build a new port in southern Galle, next to the existing harbour, an official said.
The project aims to expand the current port's capacity to meet future demand with a new breakwater, harbour basin with a deeper draft and multi-purpose terminal to handle bigger vessels.

The project is funded by a 14.5 million yen (about 13.8 billion rupees) Official Development Assistance loan from the Japan Bank for International Cooperation.

Bids, which are open to only Japanese firms:oo: , will be opened on July 3, a senior Sri Lanka Ports Authority official said.

The work involves building the breakwater and multipurpose terminal, dredging the approach channel and turning basin for ships, and installing navigation aids and other equipment.

The JBIC loan is repayable in 30 years, inclusive of a grace period of 10 years and carries an interest rate of 0.3 percent a year.

The expansion of Galle harbour is expected to reduce waiting time of vessels and improve its berth occupancy ratio.

SLPA officials said the aim is to develop Galle to handle conventional cargo which are now handled in Colombo port as well as cargo for the local industries in the southern region.

The main commodity handled by the existing Galle harbour is cement.

In the project's second phase, a large leisure component will be introduced with a marina for pleasure craft and a passenger terminal.

Galle is already a port of call for yachts.

Sri Lanka Ports Authority is also expected to call for fresh bids to develop a container terminal in Colombo by July.[/

Interesting news...

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Colombo Dockyard PLC (CDPLC) has been able to attract many tankers for repairs over the first half of 2008 with the yard being busy with many large crude oil tankers being accommodated, the company said in a statement.

Colombo Dockyard launches $ 17.5 million ‘Great Ship Abha’
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That's one big ass oil tanker. nice to know we have the capability to repair them.

Wow ! I didn't realize its size until now.. That is truely a big ass tanker

July 16, 2008 (LBO) - Colombo port plans to order more quay-side gantry cranes, mobile cranes and tractors to boost productivity and cope with increasing cargo flows, a senior official said.

Sri Lanka Ports Authority (SLPA) chairman Saliya Wickramasuriya said the new equipment acquisition was part of the ports efforts to improve efficiency and the port's ability to handle more cargo.
He said Colombo urgently needs to add more capacity to handle rising container volumes until the new deep-water port, next to the existing harbour, is built.

Construction work on the new port has already begun with dredging of the planned harbour basin and stock piling of rocks for the breakwater.

The Asian Development Bank is giving most of the funding for the infrastructure of the new port, with the SLPA putting in the balance.

The government is also to call for fresh tenders for the first container terminal to be built in the new port by the private sector. The previous tenders were cancelled earlier this year.

Wickramasuriya said the SLPA has ordered six quay-side container cranes and four mobile harbour cranes to load and unload containers from vessels.

It will also buy 30 transfer cranes and 50 yard tractors for movement of boxes within container terminals in the port before the end of the year.

The SLPA plans to speed up equipment procurement and buy direct from manufacturers, instead of going through usual government tender procedures.



Growing cargo volumes, much of which come from India's burgeoning trade flows, is already causing congestion at Colombo port, Wickramasuriya said.

Cool, finally some measures taken...

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Official handing over of the document (right) and the two cranes (left)

Two Level Luffing Portal cranes were officially handed over to Sri Lanka Ports Authority (SLPA) by KE Kranbau Eberswalde AG Germany recently at the Ceylon Continental hotel in Colombo.

The two cranes were officially handed over by Project Director of KIROW KE Kranbau Eberswalde of Germany, Axel Dossow to the Secretary of the Ministry of Port and Aviation Thosapala Hewage.

The two cranes, one with a handling capacity of 15 tons can be handled within an 18 metre distance while the other with a handling capacity of 10 tons can be handled within a 10 metre distance.

These two new cranes have been established at the SLPA after more than 50 years where such facility for handling of cargo was earlier obtained using cranes with only 60 tons of handling capacity within a handling distance of only 60 feet.

The new cranes are also efficient in operating two rob grabs as well as single rob grabs.

Following keen supervision of Minister of Port, Aviation, Irrigation and Water Management Chamal Rajapaksha many steps have been taken to boost efficiency levels and operating facilities to enhance productivity in all port operations in SLPA.

Acting Chairman of SLPA Priyath Bandu Wickrama, Managing Director W.G. Samarathunga, Director Prasanna Kalutharage, Director (Operations) U. Bopitiya, Additional Secretary of the Ministry of Ports Ranjith Silva, Managing Director of Weyenberg Technical Services (pvt) Ltd; Rufus Karunaratne and several higher officers of the SLPA management also participated at this occasion of handing over of the cranes to SLPA.

DN (http://www.dailynews.lk/2008/07/24/bus40.asp#Hanjin_launches_SNA_with_K-Line,_Yang_Ming_and_CSAV__)

It's good to see that SLPA have expedited their procurement of more mobile cranes^^^^

By Aisha Edris
Ceylon Petroleum Corporation (CPC) is seeking government endorsement to allow it to use 12 tanks belonging to Lanka Marine Services (Pvt) Ltd (LMS) for its bunkering services.
CPC Chairman, Ashantha De Mel told The Nation Economist, the Corporation had requested the government to grant permission for it to use the 12 tanks belonging to LMS.

“We are waiting for a response from the government to allow us to use the tanks belonging to LMS. We could then expand our bunkering services which are done through Gac Ships Ltd, a leading shipping company,” he said.

De Mel emphasised that CPC in the long term will be entering bunkering services alone once it captures the market, “currently CPC does not have a large market for us to enter the service alone and we needed to get help from GAC Shipping.”
Gac Shipping is a leading shipping company that has around 200 offices around the world.
Meanwhile, CPC Common Services Union demanded the government to allow CPC to recommence its bunkering services without a third party involvement.

General Secretary of the Union, D J Rajakaruna said the Corporation had made a great mistake by allowing Gac Shipping to do bunkering services, due to that, the Corporation was deprived of earning an extra large profit.

Rajakaruna noted that if CPC entered bunkering services with the help of the Corporation’s experts, it would be able to earn a large profit which could be transferred to CPC customers by reducing its fuel prices.

“If the world oil prices start to appreciate, Sri Lanka would not have a problem, if we enter the services full time. Currently, the Corporation is acting as a supplier. We should use Gac Shipping as a mediator between us and the ship,” he suggested.

According to him, there are more than 300 ships passing the country, but Sri Lanka was not able to attract them to do their bunkering and suggested that the Corporation and Ports Authority should take measures to enable the ships to get their fuel supply from the country.

“If we are able to attract at least 50 ships per day to our harbour, we would be able to earn Rs. 50 billion per day and then we could expand our services to Galle and Hambantota harbours which have greater potentials to attract ships than the Colombo harbour,” he said.

Nation (http://www.nation.lk/2008/08/03/busi1.htm)

88gucreWUNk

impressive ! the Chinese are very efficient when it comes to implementation

From what the guy said, 3 of the 30 piers (?) will be complete in two years. I guess that's "Phase 1".

Cool proyects, the city looks great, congrats¡¡¡¡

Hambantota – A Chinese operator grins high up from an operating cubicle of a crane as it lifts huge specially-built cement boulders. There is intense activity at this location at the large site of the new Hambantota port.
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Down on the ground, other Sri Lankan and Chinese workers are spraying water on the boulders or making other preparations. Convoys of trucks and lorries could be seen elsewhere on the sprawling site of more than 1,000 hectares – three times the size of the Colombo Harbour.

“We are on schedule with our work and hope we could complete the first phase of the project by end 2010,” says Agil Hewageegana, Deputy Chief Engineer, Sri Lanka Ports Authority (SLPA) and Deputy Project Director of the Hambantota Port project, as he drives around a team of reporters from The Sunday Times FT on September 22.


Mr Hewageegana, who has been involved in this project for a near three years shuttling between Colombo and here since he handles his other port functions too, said the project cost of the first stage is US$360 million of which 85% comes as a loan from China’s Exim Bank while the balance is given by the Sri Lankan government. Construction was inaugurated at the site in October 2007 but work officially got underway in January 2008.

The project doesn’t have a separate consultant, the normal practice in mega projects of this nature. The deputy project manager said the SLPA is the client cum consultant while the China Harbour Engineering Co Ltd is the contractor. Nice rows of temporary buildings – looking like a Middle East construction site – lie at the entrance to the new harbour development on Mirijjawila road housing the offices and residential quarters of the Chinese executives and workers.

The SLPA is also acquiring another 500 hectares essentially to make sure there is sufficient land later for expansion. The Colombo harbour has a total of 300 hectares. “We would like to have enough land as possible so that there won’t be a problem eventually when there is a need for land,” Mr Hewageegana, said driving on a dirt track towards the breakwater which is under construction and across from the main Hambantota-Colombo.

There are more than 500 workers at the site: 328 Sri Lankans and 235 Chinese. The entrance to the harbour is to be built on this main road which has been closed for traffic since construction began. When proceeding from Colombo, travellers now take the Mirijjawila road which connects a new road to the other side of the town.

The draught (depth) of the new harbour will be 16 metres against 15 metres in Colombo. A 230 metre passage-entrance channel will be created at the breakwater which is 988 metres long on the west end and 311 metres long on the east end. The 474 families living on this location have been relocated except for a few.

Perhaps the most interesting element at the site is the spread of cement boulders or ‘Chinese pods” as they are called prepared for construction of the breakwater. “Since there wasn’t enough natural rock, these Chinese pods have to be made,” he said adding that they come in sizes (tonnes) of 12, 18, 21, 27 and 30. The breakwater needs 12,800 pods and so far 7,800 pods have been made. “Work is on track,” the SLPA official said.

According to the schedule, the breakwater is to be completed by end 2008. The first stage due to be ready by end 2010 will allow three ships to berth. The final stage, for which funding hasn’t been found as yet, can accommodate more than 30 ships, the capacity in Colombo. “But we don’t want to set up container yards and cater to container ships as we don’t want to compete with Colombo,” Mr Hewageegana said.
Work is also onging in the coffer dam and dredging. “Dredging (to create the depth) is normally under wet conditions. But that is costly and thus it is being done in dry conditions,” he said. In this process dredges remove the sludge and then the water is pumped out. Thereafter trucks and excavators move in to escavate 16 metres and then the water is replaced.

The new Hambantota harbour, for long an option proposed by governments now and then, is crucial to Sri Lanka’s development as an average 200-300 ships daily pass on this sea lane and is an ideal location for provision of shipping services and docking.

Qin Xu, Deputy Project Manager from contractor China Harbour Engineering Co said they normally work one shift unless there are emergencies which then require non-stop work. The company, which has handled similar projects in Hong Kong, Pakistan, Malaysia, Macau, Africa and the Middle East, has been operating in Sri Lanka for the past 10 years. (Feizal)

ST (http://www.sundaytimes.lk/081005/FinancialTimes/ft343.html)