Hambantota: Nice For Local Economy, Unlikely To Be A Commercial Success
By Faraz Shauketaly in Hambantota
Hambantota Port
Sri Lanka’s latest development project nearing completion, the Hambantota Port will fill its basin starting today, August 15. President Mahinda Rajapaksa will lead the ceremonial filling in of water. Many thousands of visitors are expected at the site in Southern Sri Lanka, today to witness a once in a lifetime opportunity.
Phase One of the project has cost the government US$ 361 million and the work has been carried out by a Chinese contractor to schedule. The entire port project has been allocated 1,700 hectares of land for development usage and Phase Two and Three will have even more. Phase One will be ready in November, when the first ship is due to call. The whole project is valued at around US$ 1.5 billion, making the project the cornerstone of President Mahinda Rajapaksa’s stated aim of revitalising the economy, following the return of peace to the island. The government finally ended a 30-year separatist war in May 2009 and has now turned its attention to the economy. President Rajapaksa has repeated his aim of developing Sri Lanka as a trading hub – something that Sri Lanka was in its ancient history.
Last week, Chairman, Sri Lanka Ports Authority, Priyath Wickrama announced that the Sri Lankan government is inviting foreign investment into its US$ 1.5 billion flagship project. Dr. Wickrama though ruled out any foreign investment in the bunkering facility, saying that everything else is open to overseas investors and that the Government of Sri Lanka will retain the rights to bunkering with the Ports Authority.
Much else of what Dr. Wickrama says is open to foreign investment will need to be built. These include bulk cargo handling, oil storage tanks, warehousing complex, cold storage facility and container-transhipment, including quayside gantry cranes and a road network to serve the port. A number of companies have expressed interest in participating in the development even though Phase One will see just three ships being able to berth and a lack of oil storage facilities.
Currently, the Sri Lankan Port Authority has managed to attract just the one terminal operator at Colombo South Port with its seven million TEU capacity. The oil terminal is also being built. Plans for a refinery adjoining the new port appear to have been derailed after the original investor made little progress in spite of having been allocated the land they asked for. It is understood that the original proposal was made by a foreign company which has now taken on a project to rehabilitate a much larger refinery in Libya, costing in the region of US$ 2 billion. The government is now in discussion with others to start the new oil refinery with little delay.
For an ambitious project of this size, Dr. Wickrama has realistic expectations. He says that initially the port will be handling around one million TEUs (Twenty foot Equivalent Units) — though currently the new port does not have the necessary infrastructure to achieve this — and that he is very confident for the future growth. SLPA aims to attract around 2,500 ships that pass off Hambantota annually – out of a total of over 70,000 that ply the route each year routinely. The port also aims to initially have a 100,000 Metric Tonne bunkering facility. India has expressed reservations that the Government of Sri Lanka may well invite China to run the bunkering facility – a claim that has no mileage at SLPA.
Private sector analysts dismiss the possibility of commercial success for the new port within Phase One. They point out towards the need for cranes, warehousing and bunkering. “Even though Hambantota Port is almost on the main shipping line between the East and the West, in terms of time perhaps just one hour, no right thinking ship owner vessel will divert a main line ship to Hambantota for the sole purpose of taking on bunkers of perhaps 1,000 Metric Tonnes. They will only stop if they are to discharge and load cargo, take on supplies and possibly bunkers too. It’s all about maximising time and being efficient and productive”, says a retired master mariner. Therefore, Phase One will have to be seen as just a start.
UNP MP Sajith Premadasa (Hambantota) agrees: “We have to start somewhere. It’s not always about commercial success from the beginning. This project is good news for the local economy and over time will deliver results.”
What a stupid title. Total defeatist attitude on part of SL. Hat’s off to Sajith Premadasa’s comments even while not been in the government. He will make a very good politician someday if he continues like this.
The key word is “politician”. Sure he will be great at lying,cheating,talking his head off and doing nothing ! Has anyone considered where he got the money from to do all the philanthropy that he is supposed to have done in Hambantota ?
Unfortunately Sajith has got his mother’s brains and not his father’s !
yes he got his money from his rich in laws / unp supporters fund & distributed to poor. yes not his fathers brains as father was a idiot who gave arms to the ltte & went for a stupid ceasfire where we lost 600 police. agree topic is childish but what else can u expect fm this paper
there you go again I guess it takes on IDIOT to recognize another !
agreed Navin.stupid defeatist morons work for this paper
and you read it! that’s democracy at work: full steam ahead.
yes so there is evidence that we have full democrazy!! if no democrazy sunday leader history for the ***** they write
Yeah agree with Navin
Just because ships pass a port they do not just sail in and take fuel like a car does when it passes a petrol pump. Its cost thousands of dollars for a ship to do such a deviation operation.
What a poorly researched article from the SL, who seems to have nothing else to do these days but complain. Why don’t you check with some actual sources who know what they’re talking about, what a boon to Sri Lanka this will be? We will finally tap in to the ships that don’t need to detour on their way to Singapore and China, and in fact, the Singapore harbour is supposed to lose major revenue because of this.
The fact is this: Wimal Weerawansa may say that Singapore will close when Hambantota is complete (he said so at Sooriyawewa during the Prez Polls) but does he know that Singapore sells 3,000,000 (3 Million) Tonnes of fuels each year. SL sells around 300,000 Tonnes each year That means Singapore does in 3 months what we do in 12. Why? Because they have the cargo, the repair facilities, the ship chandling and of course almost as a by-the-way the fuels. So thats why they say it will not be a commercial success. Good for the local economy as in Phase 1 Hambantotat People will find around 1,000 taken off their jobless figures. That is a start as Sajith says. But no way will it give a return on investment anytime soon. Thats what the writer has correctly pointed out. Moron or not.
Ram.Ramalingam
August 15, 2010
Something is better than nothing. we need to start some where to achieve our goal. for the betterment of the people of the area these type of work will bring progress. I personally wish to have these type of projects where ever possible in the whole country as we are in an island.
OH! COME ON. HAMBANTOTA IS NOT THE RIGHT PLACE. IT IS TRINCOMALE WHICH ALREADY HAS AN OIL FARM. OH IT IS WITH THE INDIANS AH! THEY SHOULD HAVE BEEN KICKED OUT AND ALL THE MONEY AND THE COMMISSIONS TAKEN SHOULD HAVE BEEN INVESTED HERE. BRITISH WERE NOT FOOLISH TO MAKE THIS THERE BUNKERING STOP. OH! THIS HAS NOTHING TO DO WITH THE COUNTRY AND MAJORITY OF TRINCOMALE ARE THAMIL SPEAKING PEOPLE. THIS IS POLITICS NOT DEVELOPMENT. IT IS ALL ABOUT DEVELOPING HAMBANTOTA EVEN WHEN THE PROJECT IS NOT GOING TO WORK.
This paper always gives bad impressions.
Then why are u reading it? You better read lakehouse papers and listen to Rupavahini and ITN and live in fools paradise. what you expect from an anti-govt papaer you moron? To praise MR for his every blunder?
Marlon
Sri Lanka – Love it or Leave it…..
Because President MR – will be in power for next 7 years….
maybe more….
How old will he be by then ? Has anyone considered his health, it is the one thing that he cannot control, now that even a man can be turned into a woman !
it says it th way it is. what’s wrong with that? traitors i hear you whisper. I say its accurate reporting
One more great achievement by the GOSL and the Rajapaksa family. Infrastructure developement at any level is a boon to any country.
Comercial success …? You need more education Mr Faraz Shaukat Ali…!!!
Better luck next time mate !!
Mahindas EGO port. Maybe he and his family could sail along in Hambantota and hopefull drown so that Sri Lankans could enjoyu peace and prosperity with democracy , good governenace and free of bribery, corruption and nepotism and free of revenege and hatred. Sri Lanka is under the curse as long as the Rajapakse’s are here .
here here! Best comment thus far.
Why should a single ship stop at Hambanthota, when fantastic facilities are available in Singapore?
This moda Rajapakse is wasting our natural environment and money for nothing
I lived in Singapore early 1960′s…..
When land was acquired to expand the Singapore Port….
Negative “Naysayers”….like you – asked why does a small island like Singapore need such a large port….
Today Singapore Port is the 2nd largest Container port in the world….
Similarly Hambantota Harbour will lead in the future economic development of Srilanka…
Lankawick – Thats Lee Kwan yuu with a smart vision. Are you honestly cpmparing MR with such giant leaders? No way lankawick No way. MR got nothing inside his head but he got a Goat, a Rat, a few con-artists and plenty of IRCs.
In fact this is MR EGO port as Namal stated above.
Singapore was then headed by Lee Kwan Yew ….Sri Lanka is now headed by MR. Whether a country develops or slips into oblivion depends on who leads the country ……
hahahaha singapore is in your dreams.Keep dreaming.
What action will this Moda Rajapakse take against Roshan Gunathillake. I am waiting to see
Building a port near a shipping lane alone will not bring in revenue. Look at Hamburg and Rotterdam ports to see what other facilities are provided to shippers, ship owners and other service providers for these ports to have become major commercial hubs in the world. If Hambantota is meant only for bunkering, why should vessels turn to this port when the modern container vessels, can easily travel from the mid eastern ports to Singapore in one run?
Faraz wrote some quality articles a while ago but suddenly he lost his knack. Most of his articles are now either hastily written or poorly substantiated. What’s going on man? Have you started full time study again, which eats up your time? If that is the case slow down, and write less. Because less is more as you know if the quality is right.
yes what has happend to Faraz?No depth.If i am not mistaken this is the first mega project by a SLFP led govt . and it has to succseed with world recession slowly reversing and world trade improvinng .Sajith is correct
Where are you guys coming from ? ROI (return on investment) is the single most important factor to consider when using scarce resources ( money ) on a project.
I can understand a moron like Sajith P saying it is not important but we have to justify using money like this with even a faint probability of making some money !
How many of the armchair critics on this forum are knowlwdgeable about the socio-economic factors surrounding this massive development project or have read the various feasibility / evaluation / business case study reports ? Quoting such sources as the basis for pasing judgements here would be preferable to blindly leading us on this path.
To develop a country production should increase.Corruption should decrease.Building a new harbour is useless.We do not have anything new to export.We import luxury cars to politicos and their goons.This is another white elephent and a way to get a big fat comision for Maha Raja and family.
Anyone did any research or feasibility study into how many famillies got rich for generations on this project? That will be a good measure of the projects usefulness. Like the Dissanayakas and the Mahaweli scheme. Money for jam. Kickbacks, commissions, overseas assets. Who cares if ships dont stop here, the money is in the bank.
yes we wont have much to export. but at least bunkering and trashipment would bring in considerble income.however since 1956 SLFP led govts had been talkshops only . no projects. Mahinda has reversed that trend that should be accepted.Must improve conditions of north east also for a real growth.
Is MIHIN Airways- landing at Hanbantota Port?
King kekille might even say that with his knowledge and pump another billion perhaps.
The devil is in the detail, of course. What has been done is only the beginning.Until it is made fully functional with bunkering and loading/unloading faciliies it will not be ready for commercial activity. Yet it is a milestone start for Hambantota. One must hope it will not end up like MIHIN AIR! If so, it will be double jeopardy.By the way is there real peace?
Yes, to your last question, very peaceful. The Royal family I mean, among themselves. There is harmony among themselves and very united as a team in robbing the wealth of the country. They are so patriotic so they have devided SL into three parts – Ruhunu Pihiti and Maya and stealing equally.
The question is how to get rid of this curse after bandaranayake menia?
George Bush (senior) did not appoint any of his relatives to any position. In Sri Lanka, one man show is running. He has appointed his family members to many position. It looks like there is no qualified people left outside his family. Building this Port is also part of the agend to have a good memory for himself when he retire. It is his electrorate.
Whether the project is worth or not should be analyzed by a third party. I doubt whether if it is possible since people do not want to risk their life by criticising.
because of his family member he thrashed your uncle prabaha …!!!
Mossad, uncle Praba would have given you atleast a chance at making a living and brining up your family, now that you have voted for MR, your b@lls are in his Hands. Sucks when you are r@ped repeatedly by your own kind isn’t it. May some Vaseline from China may ease the pain you dim wit.
BTW Mossad, you may want to think twice before taking on a screen name such as Mossad, after all they are a highly skilled intelligence organization and you come across as the outcome of an incestual relationship. Last thing you need is the Jew boys to come gunning after your inbred @rse!
WELL SAID LAL
A port in Hambantota is needed for the reasons set out in this article. Far from being a defeatist article it however points out the obvious. Ships do not call at ports with no fascilities. I have heard the horror stories surrounding bunkering services at the Colombo port as it is where one company in particular is allowed to undercut and run its competitors out of business by offering the service at below cost. While this is going on right under the noses of the government now we have a second port which is nothing but a empty harbour. It needs years of investing with a good management to become profitalbe. Going from the record of this administration and considering the background of how this port was built in the first place raises doubts which this article rightfully points out.
How earth can say it will commercially unsuccessuful, sunday leader will prey day today to be unsuccessful this project. I think it is a shame to look at it this way and comment. Of course traitor media like sunday leader will never apprcieate it. That is the nature of traitors.
patriot
This paper shouldn’t exist in Sri Lanka, Gov should cancel this rubbish paper, awful!
@saraprobe
Leave this newspaper alone. Just shut your eyes and block your eyes….also your nose, if you want to. But leave this paper alone. WE want it. Have you heard the expression “throwing pearls before swine?”
Sri Lanka is going further into deabt and confirming its status as one of the poorest and dilapitated countries in the world. This project is owned and operated by China. Unfortunately as a poor third world under developed country you Sri Lankans can’t function on your own. Why not put money to eradicate the Dengue menace, garbage dumps, beggars, dirty and grotty roads, filty buses and drains, flies and the list goes on.
next 7 years – yes
may be more – NO “what a stupid idea”
dILL why do you think its a stupid Idea? All MR needs to do is pass out some bath packets to the Sinhalese village idiots and may be some Arrack to wash it down and they will vote for him again!!! Happened once can happen again. The Tamils on the other hand will be stopped from voting due to security or voting papers will go missing etc. and I doubt there is anyone willing to run that they are even willing to vote for……… same song and dance.
Well there is a loan and an interest element to it on the first phase of a project which accordin to this article is a teaser.Every one wants prosperity but emotions should not drive borrowed investment everything is now too late. I just dont undersatnd why China is behaving like this offering teasers with coveats of three or 4 times the original investment of US $ 361,000. Sajith and MR who come from and represent the same area can be proud of it but who pays?. an after thought- are we going to ask for a debt moratoriam? perhaps an offer of safe harbour for some (war) ships
in memory of the late leader Prbaharan,we shuold name the port after him.
When King Dutugamunu killed that Tamil looser Elara
he respected his body lying in state and allowed to be rested
at Anuradhapura.
He [praba] is misguided but a true hero.
Even Americans will lay to rest BIN LADEN at Arlington Cemetary
if they can get him.
He is a true international hero!
Appu
“Even Americans will lay to rest BIN LADEN at Arlington Cemetary”…
You’ll right.. they did that to Hitler and Saddam Hussain too…
China is Happy that they can do some silly tricks to scare India by doing Joint Naval Exercises. What is happening is Srilanka is becoming a Modern Vietnam for India and China experimenting their Technological Advancements. Finally we will be in trouble. Anyway Hambantota is not a natural Harbor. Future will tell whether Hambantota stays or fades.
I was fortunate to witness sea water being let into the Jebel Ali Port in Dubai in the late seventies.
it was the vision of the late great Ruler of Dubai HE Sheikh Rashid to build a port in the heart of the desert.
Today it is one of the most successful ports in the world.One of the top 5 ports.
Fujairah Port was built and was idling for many years and was unable to attract major shipping lines. The Iran / Iraq war was the eye opener for Fujairah as the Iranians threatened to mine and close the Straits of Hormuz. This threat attracted the big shipping lines like APL to call Fujairah Port as it was outside the Straits of Hormuz.
Today it is a successful port.
Why are Sri Lankans always against new ideas to improve the economy and most of all offer employment to our poor brothers.
We are not successful as we think negative, never want another person to succeed or pull the other person down.Great national pastime???????
We should appreciate the work done by the President and likes of Sajith and private sector companies who are willing to invest in Hambantota, make it work and offer another alternative to Ship Owners.
We do not have oil to support our economy while our ports built with high interst loans idle. Can we efford to have a port idling for many years till the wind of fortune blows sri lanka’s way?
Apply for a job running this port it MUST be better that what you are doing in Oz ! Certainly the first steps have been laid with this brown nosing reply.
Give you name and address next time or better post your CV !
excellent comment! but u must realize some idiots commenting here are not shipping experts but some unpers & LTTE diaspora who wud shout at anything good for the nation. both are loosers for a fact. so lets ignore people of lesser interlect best washing toilets
Truth must be a genie ASS related to others who go about boasting how they are intellectually superior when in reality they belong to the idiot class.
Why an Airport and a Harbour in Hambantota? because MR is coming form there? Its okay if MR spend his fathers money to build these projects. But its countries money and wealth. He wants another Attangalla like Banda did. to be in power forever and for his off springs.
If he really wants a development plan, he can improve and enhance Gall and trico harbours which are already exisiting. Idiots praising whatever he does. This president got no vision or foresight. He got an empty dyed head with a big thuggery mustache.
This defeating attitude led to Lanka’s trouble in the 70s til recently. It is only through courage and leadership we can really shine. I am convinced that Hambantota can be a great success. Probably those Indians are shaking in their boots now that we have built a port par excellence in the region that of course compete with them and definitely win out!
I do not know whether Indians are shaking in their boots but we all know the last time we messed with the Indians they made us **** in our pants for 30 years.
who was made to ***** in their pants when rajive gandhi was killed? what cud india do when MR said go to hell when india asked to stop the war? seems you are not in reality.
truth,
wait and see you silly bugger. It is monkeys like you who claim to represent the Sinhala people who should be hounded out and tied to trees or worse !
You are a real nit wit and a super moron. Though we know that this goventment is an immature, its supporters are even worse. You have no idea what India is today. No point you guys learning, be like this anyway its a waste.
Two Consulates General of India in Jaffna and Hambantota was formalised last week. Truth better get a new set of pants.
Premadasa is right: We have the start somewhere. We have to learn from the Chinese and Singapore about how to build a great country. No one would dare bully these two well run countries because there is great respect for their strong leadership. We need more investment from these countries, and make sure we absolutely reject those with wishes to interfere in our country.
Rajapaksa has made the first good step in a long time partnering with strong countries which benefit us.
Hambantota was devloped in no time.
Indian interest wanted to dig Palk strait so the ships could avoid going round Ceylon. Then they were going to build a port like Hamoastbantota along the Indian coast as there is no natural harbour close by. All that is gone with Hambantota.
Indians trained and armed the Tamil terrorists hoping to get Trincomalee. With the wiping out of the Indian puppet terrorists it is gone too.
Ceylonese wake up and rise up against the Indian imperialism.