Sri Lanka’s Hambantota International Port enters into agreement with Japan’s NYK line
Sri Lanka’s Hambantota International Port Group (HIPG) has reportedly announced that it had recently entered into an agreement with Japanese shipping conglomerate Nippon Yusen Kaisha (NYK) for vehicle transhipment through its port on the country’s south coast.
HIPG has reportedly stated that it was able to attract Japan’s largest shipping company and the world’s number one RoRo (roll on-roll off) fleet operator with the latest in equipment, increase in productivity and zero accident policy, combined with benefits and concessions offered by the port.
The Terminal Service Agreement (TSA) HIPG had entered into with NYK is the first RoRo specific TSA entered into by the shipping line with a Sri Lankan port, a statement by HIPG has noted.
“Under the TSA, NYK will bring RORO, machinery and equipment cargo to the Hambantota International Port (HIP), for transshipment to the various parts of the world,” the Hambantota Port Group has said.
“It is significant that NYK entered into the TSA with HIPG, after a hiatus of four years during which they did not bring any transshipment cargo to Sri Lanka.”
The TSA will be instrumental in increasing volumes of transshipment cargo to the Hambantota Port, from Japan and Thailand with the possibility of India joining the equation in future, the statement has further noted.
“This is the second TSA we signed with a Japanese shipping line and it’s a testament to the efficiency levels and commercial benefits HIP can offer,” Tissa Wickramasinghe, chief operating officer of HIPG has stated.
He has added that the TSA with NYK is a considerable boost to the port and proof of its international status.
“With our global reach, combined with the expertise and location advantage of the Hambantota International port, we can anticipate optimising business opportunities in the future,” Sagara Peiris, Director of NYK Line has been quoted as saying in the local media.
OSL take:
The government of Sri Lanka is engaged in making the country a maritime hub in the Indian Ocean. The country’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as the trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. All this has resulted in expanding business/investment opportunities in Sri Lanka’s maritime sector.
| Article Code : | VBS/AT/22102019/Z_8 |