Bunker project takes another step forward
Work on a new port and bunkering terminal in Sri Lanka is to start within the next three months.
"Representatives of China Harbor Engineering Co Ltd and Sino Hydro Corp Ltd and the Sri Lanka Ports Authority have signed an agreement for the construction of Hambantota Harbor," said a report on the official Chinese news agency Xinhua.
The first phase of the project involves the construction of a bunkering and oil terminal at Hambantota, in the south of the island.
The next two phases will see Hambantota expanded into a major container port with an annual capacity of 20 million TEUs (twenty foot equivalent units).
The first phase of the project, with the bunker terminal, should be completed within three years. The whole project is expected to be finished within 15 years.
The Chinese report said work on ther first phase would start within three months.
It is still not clear who will be supplying bunkers from Hambantota.
Players in the Sri Lankan market say the construction of a major oil storage facility at Hambantota could help bring bunker prices down in the country's existing ports.
"We don't see this development as eating into the Colombo market," a local player told Bunkerworld last week, adding that it could even benefit the port.
The plan is for the terminal and tank farm to handle up to 500,000 metric tonnes (mt) of oil products a year.
The cost of the whole project, including the bunkering terminal, is expected to be approximately $312 million.
"Representatives of China Harbor Engineering Co Ltd and Sino Hydro Corp Ltd and the Sri Lanka Ports Authority have signed an agreement for the construction of Hambantota Harbor," said a report on the official Chinese news agency Xinhua.The first phase of the project involves the construction of a bunkering and oil terminal at Hambantota, in the south of the island.
The next two phases will see Hambantota expanded into a major container port with an annual capacity of 20 million TEUs (twenty foot equivalent units).
The first phase of the project, with the bunker terminal, should be completed within three years. The whole project is expected to be finished within 15 years.
The Chinese report said work on ther first phase would start within three months.
It is still not clear who will be supplying bunkers from Hambantota.
Players in the Sri Lankan market say the construction of a major oil storage facility at Hambantota could help bring bunker prices down in the country's existing ports.
"We don't see this development as eating into the Colombo market," a local player told Bunkerworld last week, adding that it could even benefit the port.
The plan is for the terminal and tank farm to handle up to 500,000 metric tonnes (mt) of oil products a year.
The cost of the whole project, including the bunkering terminal, is expected to be approximately $312 million.
Nick Jameson | Wed Mar 14 12:45 GMT 2007