Sailing towards a new era in ports history

Uditha Kumarasinghe

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In an interview with the Daily News, Ports Minister Dilan Perera speaks about the progress of the Hambantota Port Development Project and major developments taken place within the country’s ports sector under the UPFA Government.

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Q: What is the progress of the Hambantota Port Development Project?

A: This has been the most successful port development project in the country. Not only the Hambantota project,we have also started the Colombo South Harbour Project, Oluvil, Galle and Kankesanturai harbour projects. For the first time in Sri Lanka, we are going ahead with five major port projects. Even though we don’t create a big noise, I think this five mega projects can be termed as a significant landmark in the maritime and shipping industry in the country. No Ministry had undertaken five mega projects at the same time.

Our plan was to complete the Hambantota project in four phases. This four phase project would take about 15 years to complete. The Phase one was scheduled to be completed by 2011. But we have gone far ahead of the schedule. We are very confident that we can bring the first ship into the Hambantota Harbour in 2010.

The key feature of the Hambantota project is we completely did away with foreign consultancy charges.

The Chinese Government is helping us with funds and expertise. But in all major projects of this nature undertaken earlier we spent a huge sum of money on foreign consultancy fees. The unique feature of the Hambantota project is we said no to the foreign consultancy. We have experts in those fields and we said we can definitely do away with foreign consultancy fees. We also cut down on the expenditure on foreign consultancy fees. We have also been able to go ahead with the scheduled time table.

Therefore, we are very confident that the Hambantota project will meet with the schedule and the first ship will come to Hambantota harbour in 2010.

This is a remarkable achievement as far as the Ministry is concerned and I should say this is a Ministry that has five mega projects aiming at one goal. If not for the able leadership given by Ports and Aviation Minister Chamal Rajapaksa under the guidance of President Mahinda Rajapaksa, we would not have been able to go forward. The main concept behind the success story is we completely did away with the word of “I” and we all rallied round the word “We.” Therefore, the Hambantota Port is a result of everybody working together.

Q: Now that terrorism has been eradicated, what are your plans to develop Kankesanturai, Point Pedro, Oluvil and Trincomalee ports?

A: We have already started the Oluvil Port project. This was in the pipeline for a long period. The project has become a reality due to efforts made by the President. This project was in the files over the past several years.

Under the Galle Harbour Project, the Galle Harbour is going to be developed more as a tourist port. This project is also going ahead well and the Japanese Government has provided financial assistance. We are concerned over the Colombo South Harbour Project as well. This is also going to be a mega development project in Sri Lanka. When we started the Hambantota project, allegations were levelled that we are only concerned about the Hambantota project and we are not concentrating on the Colombo Port.

This Colombo South Harbour Project was neglected by all Ministers who were in office. But this has become a reality today and it will be completed very soon. The Government has decided to develop the Kankesanturai Port, one of the key ports in the North.

In addition, the Government has also laid emphasis on the Trincomalee Port which is considered one of the very few natural harbours in the world.

Trincomalee is known in tourism manuals as the only place in the world where the “whales meet elephants.” We can see the whales in the Trincomalee sea and also elephants in the neighbouring jungle.

Q: What is the progress of the Colombo Port Expansion Project?

A: This project is also moving ahead very fast. The documents of the building of the terminal have been put up and a lot of bidders have made their bids for the building. Before the terminal comes up, the breakwater will be constructed. It is now underway.

We will finish the building of the breakwater within the next six or seven months. During this period, we will decide on the bidder to build the terminal. This is also a massive project carried out by the Ministry.

Q: What are the plans to develop the Galle Port?

A: A comprehensive plan has been drawn up to develop the Galle harbour. We are trying to have a separate area for yacht Marena so that yacht owners could bring their yacht to this Marena in Galle. We have also taken into consideration the proposals made by the UNESCO.

When building the new Galle Harbour,we will not cause any damage to the UNESCO Plan. UNESCO has a different plan to conserve Galle as one of the key heritage cities in the world which should be preserved with all its ancient structures and Dutch forts. Therefore, what we do in Galle will be in conformity with the UNESCO Plan. I must say that by the time we finish the Galle harbour project, Galle will definitely be one of the best places for tourists.

Q: Are foreign investors coming for port development projects?

A: When we talk about investors coming for development projects, we should also realize that the entire world is facing an economic recession at present. But under the guidance of President Mahinda Rajapaksa, Sri Lanka has been able to manage the economic recession well.

Even in America, millions of people have been deprived of their jobs owing to this economic crisis. I don’t say everything is rosy on the economic front. But things are picking up well in Sri Lanka. The Government in the face of the global financial crisis has defeated terrorism.

The President also took immediate measures to overcome the problems faced by the tea industry. As a result, tea smallholders are earning a good income for their tea. When the tea sector grows our foreign income level will also go up. Because the tea sector brings a lot of revenue to the country.

When our foreign income level goes up, naturally investors all over the world will have more confidence to invest in Sri Lanka. At present a tremendous confidence has been built among the investors in Sri Lanka due to moves taken by the Government to eliminate terrorism. Therefore, the picture on Sri Lanka is not as bad as the Opposition tries to portray. We can be very optimistic that a lot of foreign investments will come this year.

The President has managed to get the whole country to move together as one nation. The infrastructure development which was centered in Colombo has been spread to all the provinces including the Southern Province.

Q: What are the facilities you intend to provide to exporters at the ports?

A: We have studied the problems. We have also prepared a comprehensive report regarding the land use at the Colombo Port. A master plan for the Colombo Port has also been formulated. We are now trying to see how we can use the port and land inside the port for important functions. We want to promote the Colombo Port as a ‘Green Port’ for tourism. All these have been taken into consideration when we prepared the Master Plan on Colombo Port. In a port, we should also conduct container cargo handling sector, bulk cargo handling and the vehicle imports sector.

In addition, facilities should be provided to general cargo handling, cruise ships and ship accommodation, ship repairs and other services. Therefore, all these requirements have been taken into consideration. Now we are in the process of trying to implement the Master Plan. Earlier, there was no such Master Plan for the use of ports and lands. Everything is in place now. I am sure the exporters, importers and everybody will get their fair share when the Master Plan is implemented.

Q: Colombo has become a transshipment hub. How can we develop this trade further?

A: Colombo is the transshipment hub of the entire region. That is why we have opened unity terminals which are entirely for the transshipment business. We intend to give more prominence to the transshipment by using unity terminal only for transshipment business.

When the Colombo South Harbour Development Project gets off ground, we can have two terminals for transshipment cargo.

We have realized that this is a port that has to be built around transshipment cargo and that is why we have taken the correct steps by allocating a unity terminal inside the Sri Lanka Port Authority entirely for transshipment cargo.

But when the new terminal is built, I am sure that we can allocate two terminals for transshipment because the Colombo South Port Development Plan consists of building four new terminals. We are now in the process of building one terminal. When the entire plan is completed, we will have four new terminals coming into the Colombo Port. When that happens, probably we can have two terminals specially designed for transshipment cargo.

Q: Do you have more plans to attract ships for repairs in Colombo?

A: The Colombo Dock Yard was part of the Colombo Port sometime ago. But it was privatized during the UNP regime. The dock yard is carrying out tremendous amount of work when ship repairing is concerned. They have even found it difficult to supply the demand they have. We are exploring whether we can use part of the Trincomalee Port to do ship building as well.

Ship building is a good money spinner for Sri Lanka. The Colombo Dock Yard has shown us the way. Therefore, we are very concerned about how we are going to provide facilities to the ship building industry. With these new ports, we can allocate special areas around all these new ports for the ship building industry including the Hambantota and Trincomalee ports.

Q: Any plans to attract more cruise lines to Colombo and even Galle by providing more facilities to ships and tourists?

A: It will provide us more scope to allocate more facilities when the Galle Harbour is developed as a tourist base harbour and Hambantota Harbour commences its work in 2010 and the Colombo South Harbour coming up with its new terminal. Probably the link between all these ports and the integration of Oluvil, Trincomalee and Kankesanturai ports would help us provide more facilities to shipping lines. I am sure a lot of shipping lines and cruise lines will sail to Sri Lankan waters.

Q: What are the steps taken by the Government to develop Sri Lanka as the leading maritime and aviation hub in the South Asian region?

A: Work is being done in the aviation sector as well. The new airport in the Southern Province will be a reality very soon. The arrival and departure lounge in the Bandaranaike International Airport (BIA), Colombo has already been completed and a range of new features have been added to the airport. The entire BIA is looking much better than what it was. It has been able to cater to more aircraft now. When the second airport comes up in Weeravila, more airlines and tourists will come to Sri Lanka.

When the Ports and Aviation sectors get together, it would effectively facilitate the concept of working sea cargo and air cargo hand in hand. It is very good for a country to have the air cargo and sea cargo working together.

At present, this plan is working very well. The amalgamation of these two Ministries will help to see Sri Lanka as a major hub not only for sea cargo but also for air cargo.

Q: Can you comment on the development activities taken place in the Southern Province?

A: I think, the Southern Province, especially, the Hambantota region will become a ‘second Colombo’ very soon. Hambantota might be the second biggest city in Sri Lanka. It is an entirely new place which consists of a new port, airport, highways and a huge amount of commercial buildings. In another 10 or 15 years, the Singaporeans might want to make Singapore as another Hambantota. That is how fast Hambantota is growing.

When Hambantota grows, all its adjoining districts such as Matara, Galle, Moneragala and Badulla will also grow. Today the people of Sri Lanka are really looking forward to their dreams becoming a reality. Finally the country is also gradually realizing its development goals. Therefore, we all should get together and go forward as one Sri Lanka. We could win the war and go ahead with Hambantota project because we all rallied as one.” Let’s get together as Sri Lankans and find a lasting solution to the ethnic issue as well.