ENERGY HUB IN IOR

Energy requirements of countries in the Asia Pacific region are on the rise. Hambantota Port has all that is required to be the maritime and energy hub of the Indian Ocean Region within the next couple of decades

It’s past two years since China Merchant’s Port Holding Company (CMPHC) leased the Port of Hambantota for 99 years, wherein the Chinese entity holds 85 per cent of the company and SLPA retains the remaining share of 15 per cent. The port has made significant strides during the past couple of years in terms of port utilisation for imports, vehicle transhipments to other destinations, ship repair activities etc, though local exports are yet to take off. Within the first year of operations, the port doubled its Ro-Ro business with 136 per cent increase in the volume of Ro-Ro vessels handled. The port has since diversified its services to include other port-related activities such as container handling, general cargo, passenger, bunkering, bulk terminal, gas and project cargo. CMPHC has been planning different phases of the port development quite rightly With a few ships calling Hambantota now steadily, the Port intends to commence bunkering services early this year.

The port has a lot to its advantage owing to its strategic geographic location: Hambantota is better suited for safe anchorages throughout the year as the port is somewhat sheltered from both South West and North West monsoons. Being closer to Maritime Silk Route than Colombo, is certainly an advantage for the ships as they can save time, money and fuel. It is 16 nautical miles from the main sea lane connecting east and west, ideally positioned to become the gateway to the sub-continent. Another advantage is the extent of land available for development contracted by CMPHC—some 15,000 acres. Competitive labour costs, door to door delivery, attractive concessions and freeport facilities, ample space for storage, coupled with dry weather throughout the year, are among the benefits that give Hambantota competitive edge as a maritime and logistics hub. The Port has all that is required to be the maritime and energy hub of the Indian Ocean Region within the next couple of decades.