Sri Lanka’s southern Hambantota Port to launch master plan for developing industries
Sri Lanka’s Hambantota International Port Services (HIPS) is looking at implementing a master plan for developing industries around the country’s southern Hambantota Port, the Chinese media has reported.
HIPS, which is a subsidiary of port operator Hambantota International Ports Group (HIPG), is looking at the development of industries around the port, CEO of HIPS, Ravindra Jayawickrema has told Xinhua news agency.
Jayawickrema has told Xinhua in an interview that a master plan for industries, undertaken by an international group of companies who are competent in the field, has almost been finalised.
“What is being envisaged is to allocate a certain area of land within the port for various light, heavy and food industries,” he has said.
According to the report, once the plan is finalised, the port operator HIPG will go to the market to entice investors to set up export-oriented manufacturing to take advantage of Hambantota Port’s free port policy and strategic access to one of the world’s busiest shipping lanes located just a few nautical miles south of the port.
Along with industrial development, Jayawickrema has said the port operator hopes to catch the container overflow from the congested Port of Colombo and develop Hambantota’s bunkering and fuel supply operations once the tank farm comes into operation early next year.
“Sri Lanka lies between Singapore and Fujairah, two of the largest fuel depots in the world that supply over 60 million tonnes of fuel per year. We are trying to tap into that market to a certain extent,” he has said.
According to Jayawickrema, shipment volumes at Hambantota have tripled since 2017 and the majority of this is trans-shipments, followed by imports, while exports are yet to take off.
The media report has noted that imports coming through the port have created economic opportunities for locals.
As the majority of Sri Lankan automobile imports arrive through the Hambantota Port, Jayawickrema has said that entrepreneurs have set up vehicle repair yards around the port and created jobs for locals. The port also imports slag and clinker, raw materials used by local cement manufacturers.
OSL take:
Sri Lanka’s southern Hambantota Port has become a fast developing port in the country. The facilities offered by the port like bunkering and an adjacent industrial park have increased the business at the Hambantota Port. Hence the port offers many business/investment opportunities. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/20200203/Z_5 |