Sri Lanka’s Hambantota Port awards oil trading tender to Sinopec Fuel Oil Sales Ltd.
Sri Lanka’s Hambantota International Port (HIP) has reportedly awarded a tender to Sinopec Fuel Oil Sales Co. Ltd. for oil trading works and the operation and maintenance of their oil tank terminal along with associated facilities.
According to reports, bunkering being an important part of the marine services portfolio offered by HIP, the oil tank terminal in partnership with Sinopec Fuel Oil Sales Co. Ltd., will provide high grades of marine fuels compliant with the IMO 2020 Low Sulphur Rule as well as other ancillary facilities to marine liners calling and passing through Hambantota.
“The partnership with Sinopec, who are one of the largest providers of bunkers worldwide, underlines our goal of becoming a bunkering hub for the entire region. Plans are already in the pipeline to expand our tank capacity in the near future,” HIP Group, CEO Ray Ren has been quoted as saying in the local media.
He has further noted that HIP intends taking maximum advantage of its location, just 10 nautical miles from the main sea route connecting east and west, on which ply more than 31,000 vessels each year.
The local media has reported that 23 interested parties from Singapore, China, India, Dubai and Sri Lanka, had purchased tender documents and participated in the pre bid meeting, held at the port.
HIPG COO Tissa Wickremasinghe has been quoted as saying that the tender process was transparent and in accordance with international tender evaluation processes and practices.
He has added that Sinopec was awarded the tender for its global network and terminal operation experience, “We believe this cooperation would help us to provide cost-competitive and high-quality products as well as effective and safe services to our customers.”
Meanwhile, Sinopec Fuel Oil Sales Corporation Ltd. Deputy General Manager and Chief Accountant Han Xueling has said, “With our capability as the largest oil product supplier in China, we considered it our responsibility to start the production and supply of low Sulphur fuel (LSFO) and MGO. Hambantota International Port is one of the many world ports, we would be supplying marine fuel to in 2019, and we guarantee the supply of VLSFO to service all Indian Ocean vessels. We look forward to a long-term partnership with HIP who we consider as a strategic hub in South Asia.”
OSL take:
The deal won by China’s Sinopec to trade oil at the Hambantota Port in Sri Lanka is yet another indication of the growing business/investment opportunities in Sri Lanka. The statement by Sinopec that they consider the Hambantota Port as a strategic hub in South Asia is yet another confidence booster for foreign businesses to engage in doing business with Sri Lanka.
| Article Code : | VBS/AT/18052019/Z_1 |