New bunker facility will take three years to build
Work on Sri Lanka's Hambantota port project, which includes a $87 million bunkering terminal, will last about three years, according to sources familiar with the project.
The development of the whole project, including the bunkering terminal, is expected to cost approximately $312 million.
It is still not clear when work will start.
The bunkering terminal, which will allow 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 has 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. Construction of the second phase of the project is expected to start no earlier than 2012.
Sri Lanka-based bunker players told Bunkerworld that the new bunkering facility would be in a strategic location, close to key international shipping routes. One player said it was an ideal location for bunkering operations.
Observers believe the Hambantota port project could help China increase its influence in the Indian Ocean.
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| Hambantota is located strategically for bunkering operations |
It is still not clear when work will start.
The bunkering terminal, which will allow 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 has 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. Construction of the second phase of the project is expected to start no earlier than 2012.
Sri Lanka-based bunker players told Bunkerworld that the new bunkering facility would be in a strategic location, close to key international shipping routes. One player said it was an ideal location for bunkering operations.
Observers believe the Hambantota port project could help China increase its influence in the Indian Ocean.
Lee Hong Liang | Wed Mar 7 08:39 GMT 2007