Aero City Phase 1 to commence in Katunayake
Sri Lankan cabinet recently approved a proposal to take over 80 acres of land to develop the Aero City project. The lands in kadana which were taken will be used to launch the phase one of the project. The cost is estimated to be LKR 4.85 Billion and is set to be constructed around the Bandaranaike International Airport. The Aero city project was aimed at addressing the demands in the airport logistics and also create a sustainable and efficient business development environment.
First announced as a part of the Metropolis plan to, Aero city is being built also to complement Port City. As per the announcements Aero City will include, Aerodrome, New Passenger Terminal, Aero-City Business Park, Airport Hotel and an International Convention Centre as well as a residential township in Minuwangoda. In alignment with the Aero City Development, Bandaranaike International Airport (BIA) Aerodrome Upgrade ,Expansion of Existing Passenger Terminal Building at BIA,BIA Development Project Stage II Phase II ,Transit Hotel at BIA ,Proposed Runway of BIA ,Establishment of the Business Park in the Aero City ,Establishment of Convention and Expo Center in the Aero City, Establishment of the Hotel School in the Aero City ,Car Rental and Transport Facilities in the Aero City and Aero City Township Development in Divulapitiya will also commence.
Sri Lanka is currently ranked as the 89th country in the Logistic Performance Index as of 2014, which is a rathe low number. With the inclusion of the value addition cluster, SME cluster and commercial and entertainment cluster as well as housing and common utility clusters can be expected to fuel growth of industry in the Aero City and by extension Sri Lanka. The cabinet memorandum identifies, value addition cluster will seek to utilize local resources to compete in the value-added electronic/electrical goods market, pharmaceutical products and high-end perishable goods. A Media city will also be constructed on a 15-acre land in the Aero City.
The influx of development brought by this project is set to revitalize the region and thus will create a demand for residential properties which will be fulfilled by the housing project, completing an entire eco system for rapid growth.
OSL TAKE
Aero City and the Port City will be the double axis in which Sri Lanka’s Air and Maritime trade hub success will depend on. Despite the BIA serving for years as the Sri Lanka’s premier Air Traffic destination, the logistics industry around the airport and other industrial parts of the country has been underdeveloped for years. With the port city aiming to make the most of the maritime facilities that will be constructed it would make perfect sense to connect these large centers together creating a huge upgrade on the existing logistic network.
The government has committed significant resources to the project namely, LKR 3500 million for land acquisition and LKR 1354 million for infrastructure development. This level of development will assist to both establish an industrial demand for future as well enable BIA to reach its full potential. Also, the government’s approach to the project seems to be sustainable as it aims to not just build the infrastructure and move on but also have committed to a more long term plan with residential housing, entertainment and even media facilities being taken into account.
| Article Code : | VBS/AT/13112017/Z_1 |