Rs.250m Project To Lay Bunker Fuel Pipeline

The Sri Lanka Ports Authority (SLPA), having realized the necessity of replacing the more than 60 years old bunker fuel pipeline running from the Bloemendhal Oil Terminal to the Port of Colombo.
The project jointly undertaken by the Civil Engineering Division and the Mechanical Works Division of SLPA will commence on July 28 under the direct supervision of Dr. Priyath B. Wickrama, Chairman of SLPA and inaugurated by the Deputy Minister of Ports and Highways, Rohitha Abegunawardhane. The Rs.250 million project is scheduled to be completed in July 2013.
Upon the declaration of Presidential grant of the land of 8 Acres 2Roods 21.44 Perches which was within the declared limits of the Port of Colombo by the Supreme Court restoring the possession of the said facility to the SLPA immediate steps were taken to enhance the bunker business in Sri Lanka. Accordingly, SLPA also entered into fresh agreements for the use of facilities within the port on equal terms with all parties licensed to supply bunkers.
Having taken over the premises, SLPA has initiated steps to satisfy the requirements of the holders of bunker license by utilizing the common user facility at the Port of Colombo and the Bloemandhal Oil Terminal. Jaya Container Terminals Limited – the Management Agency of the SLPA entered into agreement with all 10 holders of bunker licenses to make available facilities at the Oil Terminal. To enhance the storage capacity to be shared by the license holders, a new storage tank with the capacity of 5,300 MT was also be constructed at a cost of Rs.70 million. Accordingly, storage capacity has seen increased to almost 35,000 MT at the Oil Terminal and storage capacity for Heavy Fuel Oil of 380cst viscosity (HFO 380cst) and marine gas oil respectively. In addition, 5,200 MT storage capacity is available for Intermediate Fuel Oil of 18 cst viscosity (IFO 180 cst).
Until 2008, only the Dolphin Tanker Berth was available for berthing of oil tankers to discharge bunker fuel to the storage facilities. Sri Lanka Ports Authority has converted New North Pier as a multipurpose berth to accommodate oil tankers as an alternate berth which cost approximately Rs.40 Million. This has resulted faster turn round time of oil tankers and to avoid payment of demurrages to the ship owners due to non availability of a tanker berth.