Hayleys enters Magampura Port

US $ 7 million joint venture with Dragon Asia:

Shirajiv Sirimane in Hambantota

Dragon Asia Fertilizer together with their local partner Hayleys PLC created history at the Ruhunu Magampura Mahinda Rajapaksa harbour by becoming the first private enterprise to invest in the Port. The joint venture will invest US $ 7 million for a fertilizer bagging storage and processing plant.

Hayleys Chairman and Chief Executive Mohan Pandithage said they were happy to enter the history books once again as Hayleys legacy began in 1878 from the South (Galle).

“Magam Ruhunu Harbour is poised to become one of the highlights in South Asia in terms of trade and Development and they were proud to be the first investor for this crusade,” he said.

The international fertilizer transhipment and distribution hub we have opened, will open the Sri Lankan economy to a new era of development. “This facility will generate 130 employment opportunities for people in the area and will also attract vessels to the Hambantota Port. It represents an important development in the post-war infrastructure expansion in the country.”

“As a Group that has consistently supported development initiatives in Sri Lanka, Hayleys is proud to take the initiative in investing in the Magam Ruhunupura Port industrial zone, setting a precedent for other private sector entities to follow,” the Chairman said.

“We at Hayleys hope to continuously support the development of the country in every way possible and our voyage at Hambantota has only just begun.” The group is expected to embark on their second stage of the project next year which would focus on blending.

The project will be ready in eight months.

The main area of business would be exports to the Asian region while around 15 percent is to be sold in Sri Lanka.

Agriculture Sector Head and Executive Director M. Rizvi Zaheed said one of the main reasons for them to select Hambantota was its geographic location which helps them to gain better ‘speeds’ in exports.

Once operational, the state-of-the-art Hambantota International Fertilizer Distribution Hub hopes to attract major fertilizer shipments from the Baltic Sea region to the Port of Hambantota, by employing its strategic location to deliver freight advantages to buyers in terms of cost and time savings. Such cost advantages will in turn benefit the local agriculture industry, enabling the local farmers to thrive.

He said that more and more countries are emphasizing on agriculture and this plant will be able to exploit this advantage.

Ports and Shipping Deputy Minister Rohitha Abeygunawardane said the government does not have any shares in Hayleys and they have invested in the Hambantota port due to its sheer economic value.

“This will also silence critics and help to build investor confidence opening out the harbour to the international markets,” he added.

He said in addition Peak Energy will invest US $ 434 million to have one of the world’s biggest chemical plants in Hambantota while Thatta Cement of Pakistan has received cabinet approval for a bagging plant to the value of US $ 15.6 million. The fourth investor is Renuka Sugar who will bring raw sugar from Brazil for refine and export. These projects will generate around 900 jobs.