Asia/Pacific News
Strike Over Hambantota, Trincomalee Oil Terminal Deals Won't Hit Bunkering: Sources
A strike by Sri Lanka's Ceylon Petroleum Cooperation (CPC) Trade Union affecting fuel distribution in the country will not impact bunkering, local sources have told Ship & Bunker.
CPC says it is on indefinite strike, effective midnight on Monday, over government plans to allegedly shift management of oil terminals in Trincomalee's China Bay to India, and the Port of Hambantota to China.
As Ship & Bunker reported earlier this month, Mahinda Samarasinghe, Sri Lanka's Minister of Ports and Shipping, said that an agreement with China Merchants Port Holdings Company (CMPort) over the future management of the Hambantota Port had been "virtually finalised."
Local media quoted D. J. Rajakaruna, CPC Trade Union Collective Convener, saying: "As CPC Trade Union we urged the government to change their decision of hand over the Hambantota and Trincomalee oil tank farms to china and provide us an acceptable response."
"The government didn't even consider our demands."
CPC Trade Union says that, under the strike action, there will be no fuel distribution in the country.
While some local media reported bunkering could also be affected if no positive response was given by the government, local sources have told Ship & Bunker that is not currently the case.
"This strike in on petrol and diesel supplies on domestic vehicles only," a source said.
The final agreement is set to be presented to Sri Lanka's Cabinet next Tuesday, where future timelines with related to the deal will be decided, according to local media reports.
As Ship & Bunker reported in January, following fierce public debate, Malik Samarawickrama, Sri Lanka's Minister of Strategic Development and International Trade, said the Government of Sri Lanka and the CMPort was set to renegotiate the $1.4 billion framework agreement for Hambantota that was signed in December.
