Sri Lanka’s Hambantota Port inks deal with Thailand’s Ranong Port to develop regional shipping route
The Chinese managed Hambantota Port in Sri Lanka has reportedly signed a deal with Thailand’s Ranong Port in a bid to developing shipping routes in the region.
Accordingly, a joint working group is to be established to develop coastal shipping in the Bay of Bengal between the two ports.
Ranong Port had recently signed an agreement with India’s Krishnapatnam Port.
The local media has reported that the Hambantota International Port has stated it will support Thailand’s policy of boosting trade with India and Sri Lanka under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
Thailand is currently following a policy to boost trade with India, Bangladesh, and Sri Lanka under the framework of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
“We are very happy to be a part of this initiative as it is looking at developing the BIMSTEC region to the benefit of all its partners,” Ray Ren, CEO of Hambantota International Port Group (HIPG) has said in a statement released to the media.
“With HIP now coming strongly into this play, we can see it becoming an important nodal which will facilitate the movement of cargo not only in the region but also countries to the west of Sri Lanka.”
According to local media reports, the Hambantota Port is already transshipping Indian cars to Africa and the elsewhere. Thailand is also a key auto manufacturing hub.
HIPG has stated that there are also potential in an industrial zone by the side of the Hambantota Port.
“The industrial zone, which will be situated adjacent to the docks in the bonded area of the Hambantota Port is a totally new offering for the region,” Ren has further stated.
“It will also make HIP the gateway port for the southern region of Sri Lanka,” he has added.
OSL take:
Authorities in Sri Lanka are working towards making the island a maritime hub in the Indian Ocean region. The country’s geographical positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed by Sri Lanka have made the island a business in the South Asian region. Also, the continuous growth recorded by the country’s port and maritime sectors as well as the development programmes launched by the sectors have resulted in the expansion of business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/19092019/Z_3 |