Asia/Pacific News
Sri Lanka: SLPA Seeks Private Sector "Bail Out" for Hambantota Bunkering
The Sri Lanka Ports Authority (SLPA) Monday was said to be urgently looking for joint venture partners to run bunkering services Hambantota Port, Sri Lankan media reports.
"The Sri Lanka Ports Authority which was handling this operation for the past two years is now facing a dilemma since the revenue generated from this is fast drying out," said an official at Hambantota Port.
"We are now reaching out to the private sector to 'bail out' the SLPA and desperately looking for a partner for a joint venture."
Bunkering services are said to have ground to a halt since a shake up following presidential elections were concluded in January.
In February, SLPA Chairman Lakdas Panagoda said that the SLPA had temporarily stopped the purchase of any further bunker fuel after authorities determined that bunkering at the port had started without the proper planning, and it was set to make a large loss on the operation.
It is understood the SLPA is considering seeking tenders from private firms to run bunkering services, with the port authority charging operators a monthly fee, if no joint venture partner can be found.
According to a maritime industry source, private firms looked to gain a foothold in Hambantota bunkering three years ago, "however due to reasons best known to the SLPA they had decided to carry on this operation."
A separate source is cited as commenting that Hambantota Port has failed to attract the investment that was widely touted during planning phases, with proposed industrial installations remaining unbuilt and the number of ships calling far below expectations.
It is understood that an expansion of Colombo Harbour is drawing general cargo traffic away from Hambantota.
This month, the Association of Licensed Bunker Operators of Sri Lanka (ALBOSL) was said to have urged the country's government to operate Hambantota Port as a common user facility for bunkering.
