Sri Lanka Port Expansion Project

aragon · Mar 1, 2009

Project Fact Sheet:

• Two breakwaters, 5 km and 1 km in length
• Dredging of harbour channel to 20m depth estimated volume being 13.6 million cubic metres
• first terminal will be 1200m in length, sufficient for 3 x 400m berths
• construction tender expected to be awarded by July 2007; construction period is 39 months
• Phase 1 includes breakwater and 3 terminals
• Phase 2 includes an extension of the breakwater and one more terminal

Colombo%20Port%20Expansion%20Project%20Model.jpg

Dec 18, 2006 (LBO) – Sri Lanka's President Mahinda Rajapakse Monday kicked off a million dollar project to expand the Colombo port, which will triple existing capacity and enable it to service larger vessels in the future.

The 1.2 billion dollar project, the largest port development undertaken so far, will add four terminals, each with four berths to existing facilities, the Sri Lanka Ports Authority said.

Each terminal would be 1,200 metres in length and have between three to four berths.

"The first terminal will become operational in 2010 and have a nominal capacity of 2.4 million TEUs (Twenty-foot Equivalent Units), with the others being brought on-line as the market demands it," the Sri Lanka Ports Authority said.

To accommodate deeper vessels, the harbor basin will be deepened to 18 metres while the channel carrying the vessels will be 20 metres in depth.

Once completed, the Colombo Port will have capacity to accommodate around 12 million TEUs each year, the statement said.

The port, current capacity hovers at around 4-million TEUs, with ongoing transshipment volumes expected to push 2006 volumes up to 3-million TEUs, SLPA said.

The first phase will include building breakwater and dredging the harbor basin followed by the construction of the first container terminal.

The government is expected to foot the bill during the first phase.

Initial work including a 3-kilometer breakwater, will cost an estimated 300 million dollars, with private sector expected to chip in with financial assistance during the second stage of the project.

SLPA says it plans to incorporate latest generation yard planning and container handling equipment and techniques to maintain berth and vessel productivity.

In addition to container cargo terminals, the port has Roll On – Roll Off and bulk cargo terminals that help major vehicle manufacturers export their vehicles to and through the island from this port.

"This project, which will result in the creation of a government-built and owned harbor facility, will include public-private partnerships in the provision of terminal services," SLPA said.

aragon · Mar 1, 2009

The Port of Colombo has been rated as the No. 1 Port in South Asia, the 37th amongst the container ports of the world by the Containerisation International Yearbook 2005.

The increase in world container traffic combined with a substantial rise in the economies of the Indian sub continent over the next two decades generates a continued and expanding demand for container transshipment services at Colombo.

At current levels of growth, the existing port facilities will reach capacity by 2010. Therefore in order to maintain the Port’s status as a key regional hub for maritime services, the Government of Sri Lanka and the SLPA are embarking on a major expansion of the Port of Colombo.

Under this project a new outer deepwater harbour enclosed by new breakwaters to cater for the next generation of ships will be constructed by the SLPA through funding from the Asian Development Bank (ADB). The planned development will take place under the port expansion project adjacent to the current Port of Colombo. The construction of the basic infrastructure will be followed by the construction of three terminals in stages, as the traffic increases. The first state-of-the-art terminal will be constructed as public/private enterprise on BOT basis.

The Current Port and its Terminals

The Port of Colombo is located in an artificial harbour formed by three breakwaters, constructed more than a century ago. The port basin covers 200 hectares and is dredged to depths of up to 15 meters. Access to the harbour is provided on the western and northern sides. The entire perimeter of the harbour is occupied with berths, terminals and vessel related activities. The Port is connected to the national rail network; however, virtually all cargo movements in and out of the port are by road transport.

Three container terminals at which the majority of container traffic is handled as follows:

1.Jaya Container Terminal (JCT)
2.Unity Container Terminal (UCT)
3.South Asia Gateway Terminal (SAGT)

2005 Total (TEU million ) - 2.46
Average Growth rate % - 9.8%
Transhipment - 70%, Domestic - 30%

Future Container Traffic

* The level of domestic container traffic is projected to rise by 9.5% annually to 2010 and accounts for approximately 30% of the total container traffic with transhipment providing the balance.

* The total container traffic at Indian ports is expected to grow at a rate of 12% per annum in the next few years; this will taper off to 9% in 2010 and 7% after 2015. This forecast is based on “export growth predicted by authoritative forecasting bodies” and marginal additional container penetration. The growth rates may be considered conservative since they are below growth over the last 5 years, which averaged 14% per annum and India still handles less than 5 million TEU, while China, with a similar population, handles over 40 million TEU.

* The transhipment share of total ISC traffic is forecast to decline from 45% to 33% by 2008 as India receives more direct calls. This assessment has been developed on a port by port basis having regard to base load and the influence of cabotage on Indian port operations. Although some ports may receive 100% direct calls the continuing emergence of other small ports ensures a future market for transhipment.

* The dominant position once enjoyed by Colombo is facing increasing regional competition. However on the basis that premier league levels of productivity will be offered, the institutional framework of the Sri Lankan port sector is modernized and the port operators are able to negotiate tariffs without external control, a revival of Colombo’s share of regional transhipment traffic is expected, with an increase from a 23% share in 2002 to just over 30% by 2015.

Development Plan

The layout of the proposed Colombo Port Expansion Project (CPEP) has been designed to accommodate vessels with an overall length of 400m, beam of 55m and draft of 16m.

The harbour will be served by a new two-way channel with a depth of 20m and a width of 570m.

The new breakwaters in the initial phase will enclose a basin area of 285 ha which will support three new terminals each with a quay length of 1200m and a land area of 58 ha.

The basin will be dredged to –18m with provision to deepen it to -21m should a new generation of deep drafted vessels come on line. There is also provision to extend the breakwater under a second phase to provide area for a fourth Terminal.

The initial development costs for infrastructure comprising the construction cost of the breakwater, channel, land, access, utilities, small boat harbour and navigation aids is estimated to be in the region of US $ 320m. The cost of the first terminal comprising quay wall, yard reclamation and surfacing, buildings, power and services as well as terminal equipment is estimated to be about US $ 300m.