Sweeping reforms at ports and aviation institutions amidst plans to double transhipment volume at Hambantota port is on the cards for new Ports and Aviation Minister Arjuna Ranatunga. The Hambantota port would be encouraged to increase its transhipment volume by doubling it by end of March this year, the minister said in a telephone interview [...]

The Sunday Times Sri Lanka

Arjuna sweeps up dirt at port, aviation agencies

Hambantota port targeted to double TS by end March
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Sweeping reforms at ports and aviation institutions amidst plans to double transhipment volume at Hambantota port is on the cards for new Ports and Aviation Minister Arjuna Ranatunga.

The Hambantota port would be encouraged to increase its transhipment volume by doubling it by end of March this year, the minister said in a telephone interview with the Business Times, while he was driving up to visit the Trincomalee and Oluvil ports.Hambantota port in 2014 had recorded 200,758 TEUs transhipment vessels in addition to 69, 638 domestic TEUs generating an income of Rs. 5.3 billion. Transhipment volumes in 2013 were at 157,490 TEUs with 37631 domestic TEUs generating an income of Rs. 585.2 million, according to official figures. The surge in income in 2014 was due to a revenue of Rs. 4.2 billion from oil bunkering along, a new area of port work.Commenting on how he would achieve this, the minister pointed out that they hope to double the transhipment volume since they have had discussions with a number of ships interested in plying via Hambantota.

He said that there were areas that need to be improved at the southern port in terms of surface improvements in addition to the upgrading of the standards of the transhipment there with the turnaround time being one hour with accident free areas.

In addition, the minister noted that most projects had been put on hold including the man-made island off the Hambantota port with an extent of about 48 hectares exclusive to foreigners and locals permitted entry upon receipt of a pass.

Former Sri Lanka Ports Authority (SLPA) Chairman Priyath Bandu Wickrama in January last year outlined the island as an entertainment arena with access restricted to Sri Lankans, constructed as part of the US$808 million Phase II of the Hambantota port expansion project.
Meanwhile, Minister Ranatunga said that they would appoint a committee to investigate into irregularities into airport and aviation institutions similar to that for SriLankan Airlines.

He noted that these committees would be headed by well-known lawyer and former Transparency International Sri Lanka Chairman J.C. Weliamuna.

The minister had conducted discussions with SLPA staffers and had looked into complaints from workers even basic facilities. He noted that while continuing the day-to-day work of the Colombo port they hoped to clean up on corruption as in the purchase of gantry cranes from China, which has been stopped.

These gantry cranes were to be purchased for the East Container Terminal costing approximately US$64 million but, Mr. Ranatunga said this cost could be brought down by at least 15 per cent.

Similarly, the Bandaranaike International Airport (BIA) runway project would also be on hold since this was believed to be carried out through an “unsolicited proposal” costing nearly US$154 million, he said.

Moreover, it was found that this cost was later brought down twice upto US$94 million, the minister said highlighting that it was unclear how figures could be changed “so rapidly.” In this regard, the current administration is looking at reducing it further by about 25 per cent.

Chinese workers go home

Ports and Aviation Minister Arjuna Ranatunga responding to questions on the presence of a large number of Chinese workers at the Hambantota port said they would go home once Phase I is over.

He explained that the contracts for the Chinese workers were given under the Rajapaksa administration as a result of which they were here to carry out work on the Hambantota port.

The minister noted that since the government had incurred a colossal cost on construction of the southern port, they would not be entering the second phase of the project.

On the other hand it was pointed out that once the port’s Phase I was completed the companies would have to go back along with the Chinese workers brought down by them.

 

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