India will subsidize operating costs and charges at the Nagapattinam port equivalent to 25 million Sri Lanka rupees a month for the next year, while the island nation will also reduce its embarkation tax.

“Strengthening maritime connectivity between India and Sri Lanka was a vital component of the vision document for economic partnership jointly adopted during the visit of the President of Sri Lanka to India in July 2023,” the Indian High Commission said in a statement.

“The resumption of the ferry service is an affirmation of the people-centric policies of the Government of India.”

“In the future, connectivity with Sri Lanka will be further enhanced through electricity grid interconnection, two-way multipurpose pipeline and setting up a land connectivity economic corridor.”

The ferry service will be operated by IndSri Ferry Services, a provate operators, selected by the Shipping Corporation of India, in consultation with the Government of Sri Lanka (GOSL).

Colombo is serving the Middle Eastern ports as shipping lines are re-routing vessels away from the Red Sea and Suez Canal, SLPA Chairman Keith Bernard said in a statement.

Along with other privately run terminals, Colombo transshipped 1,729,314 boxes, up 24.2 percent from a year earlier.

SLPA’s own terminals had transshiped 582,403 TEUs, up 49.81 percent from a year earlier.

With domestic volumes SLPA’s terminals had handled 652,766 boxes up to March, up 48 percent from a year earlier.

New ship-to-shore cranes at the ports East Container Terminal can further boost volumes, as will the coming on stream of ECT Stage II, SLPA said.

“The new cranes will enable the port to handle ultra-large GMX 24 ships, allowing it to accommodate higher volumes in the future,” the port said.
(Colombo/May01/2024)

Head of maritime authority Jask, Mohammad Amin Amani was quoted by Irans Presstv.ir portal as saying the Cook Islands-flagged tanker had been caught in heavy storms and was foundering 30 miles off the port.

“Jask’s rescue and relief vessel was dispatched to the area and saved the 21 crew of the foreign ship,” said Mohammad Amin Amani said.
Storms have hit the Sea of Oman and the Strait of Hormuz, a key energy transport corridor where Jask is located on the eastern tip, the report said.
UAE and Bahrain have reported flooding from heavy rainstorms over the past week. (Colombo/Apr18/2024)

“It is still in the development stage,” Silva told EconomyNext. “If the pilot is successful, we would be able to launch by the end of June.”

Currently cargo ships arriving in Sri Lanka must declare the cargo upon their arrival in territorial waters.

“We plan on getting cargo information 48 hours before the departure of the ship from the foreign port,” Silva said. “That way it is faster for us to do our homework.”

“This way we can do the risk assessment and see if it’s low risk, medium risk or high risk.”

Sri Lanka Customs can then start the process of authorization and documentation before the ship arrives in Sri Lankan territorial waters.

Prior cargo declaration begins from April, and piloting of pre-arrival processing is set to start on May 1.

The pre-arrival and prior cargo declaration project supported by German’s GIZ. (Colombo/Apr10/2024)

The container vessel MSC Ingrid made her maiden call at the port on April 09, coming from Rotterdam discharging 500 twenty foot equivalent units, kicking off the transshipment service, the company said.

“We are confident our container transshipment service will enhance Sri Lanka’s position in the marine connectivity index for the South Asian region,” Johnson Liu ,Chief Representative of China Merchants Group in Sri Lanka and CEO of HIPG said.

“With MSC’s collaborative partnership, HIPG will now look at expanding our investment in equipment and other infra-structure facilities, enabling us to service larger vessels on the east west shipping route.”

HIPG is a joint venture between China’s CM Ports group and Sri Lanka Ports Authority.

The boxes unloaded on April 09, will be picked up by another MSC vessel, ‘Sky 11’, on April 16 and be taken to Dubai.

Many mainline vessels that are by-passing Middle Eastern ports East of Suez and going around the Cape of Good Hope are discharging or picking up Middle Eastern cargo in Sri Lanka.

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Container volumes at Colombo also surged 29 percent in February.

“We plan to make optimal use of HIP’s strategic location, capacity and expertise, to deliver the full potential the port is capable of, doing our part to enhance Sri Lanka’s regional hub status,” Liu said.

Shamal Perera, Director-Operations and Regional Operations Manager-Colombo representing MSC Geneva, said his company was looking for best options for customers given the current situation in shipping.  

“As a forward thinking Carrier, MSC will always evaluate available options in order to be flexible in providing the best services to our customers,” Perera was quoted as saying in the statement.

Sri Lanka’s Ports Minister Nimal Siripala de Silva supported HIP in granting the required approvals to facilitate the shipping connectivity between Hambantota and the Port of Colombo, Liu said.

Through this approval, local importers and exporters would be able to make direct shipments or transshipment of cargo to and from Hambantota to Colombo, the port said.

“Given the climate change environmental concerns in the logistics and supply chain industry, the shipping connectivity between the two Ports will make a significant impact in reducing green-house gas emissions as opposed to road transport,” the port said. (Colombo/Apr09/2024)

“After the Surveyor General’s assessment, the Port Authority has paid an advance of 52 million rupees to the Sri Lanka Cement Corporation,” Gunawardena told reporters on Tuesday announcing the week’s Cabinet decisions.

“Accordingly these identified lands will be transferred legally as per State Lands Ordinance 6 (1) to the Kankasanthurai Port for its development.”

India recently pledged 61.5 million dollars in grant aid to develop Kankasanthurai Port in the island’s Northern Jaffna peninsula.

As part of the project, a new breakwater will be constructed, and the port will be dredged up to a depth of 30 metres to accommodate deep-draft vessels

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The KKS Port began operations as a commercial port coinciding with the establishment of the Cement Factory in Kankesanthurai in 1950.

The Sri Lanka Cement Corporation, with around 5,000 acres of mineral resource-rich land, is to be restructured, the State Minister of Primary Industries said earlier this year. (Colombo/Apr9/2024)

Up to February 2024, transshipment volumes were up 27.2 percent.

Meanwhile domestic container volumes were also picking up as the economy recovered from a currency crisis and tourism inflows boosted incomes of the people, driving more imports, despite foreign reserve collections.

Domestic containers surged 39 percent to 92,097 in February 2024, from 66,236 in February 2022.

Sri Lanka’s total container volumes in February were up 30.3 percent to 1,337,557 TEUS.

In 2023 Colombo Port handled 6.951 million TEUs, up 1.17 percent from a year ago.

Related Sri Lanka sails in to the breach as ships by-pass Middle East over Houthi attacks

Container yards at Colombo terminals are full as the port copes with traffic disrupted by the Red Sea attacks.

Shipping industry officials say Mediterranean ports are also facing similar surges in traffic. (Colombo/Apr05/2024)

The visiting delegation headed by Wannaporn Niyomthong, Deputy Director from Directorate 8 of Thailand, was briefed on Hambantota International Port’s, energy, maritime services, roll-on-roll-off vehicle transfers.

‘The port’s plans to commence its first phase of container operations was also discussed,” the port statment said.

The delegation came after an earlier visit by Hambantota Port to Thailand.

“The free trade agreement Sri Lanka and Thailand is preparing to sign provides further impetus for these interactions and HIP wishes to engage with Thai businesses and investors on several levels,” Tissa Wickremasinghe, Chief operating officer of Hambantota International Port Group (HIPG) said in a statement.

“They have shown interest in the different pillars of the port’s activities and we hope to explore mutually beneficial business and investment opportunities.” (Colombo/Apr01/2024)

“Sri Lanka’s port development has taken a new turn of an advanced port development with the assistance of China, which we appreciate,” Gunawardena said addressing the BOAO Forum for Asia Annual Conference 2024 in Hainan in China.

“Sri Lankan, Colombo port will become a hub, a new developed port with financial instruments that could cater to the new demands that are growing among ourselves, among our countries, for development and investment, which is essential,” Gunawardena was quoted as saying at the forum in a statement by the Prime Minister’s Media division.

Explaining Sri Lanka’s expansion of Colombo Port, and Hambantota Port, as well as Colombo Port City, the new Colombo Financial Center, he said it could be a major financial hub ensuring rapid progress of not only Sri Lanka but also other countries in the region.

Gunawardena also called for relaxing trade barriers, and opening areas for more tourism and different forms of tourism between Asian countries.

“On behalf of Sri Lanka, I pledge our support to continue to work together as we have committed ourselves to the maritime lanes of the Indian Ocean to keep it free for all trade to flow from East Africa to East of Asia.”

Sri Lanka’s China-run Hambantota Port has seen a steep increase in oil and gas vessels in 2023 helped by Sinopec’s bunker operations, and is expecting to double throughput in 2024.

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The Southern port was also looking to grow its transshipment business with ports in the South Asian region. (Colombo/Mar30/2024)

Prime Minister Gunawardena’s six-day official visit to China comes after Beijing raised concerns over Sri Lanka’s decision to ban its research vessels before allowing a German research ship for replenishment early this month.

“Both countries agreed to continue to act under the friendship, peace, mutual respect and fivefold principle in international affairs that do not interfere in the internal affairs of a country,” Prime Minister Gunawardena’s office said in a statement on the meeting with the Chinese President Xi.

“It was emphasized that bilateral relations should be based on mutual respect and mutual productivity between the countries, and acting according to that policy would set a good example for both countries.”

“The Chinese President also assured that China will support the schemes necessary for the development of Sri Lanka as soon as they are presented. Chinese President assured continuous support of China to Sri Lanka’s efforts for political and socioeconomic progress. Chinese President said that China will always stand for safeguarding independence, territorial integrity and sovereignty of Sri Lanka.”

CLOSE CORPORATION WITH CPC

Xi also stated that the party representing the Prime Minister and other parties in Sri Lanka hope to further increase cooperation with the Chinese Communist Party (CPC), it said.

“Prime Minister thanked the President for assistance provided during the unprecedented economic crisis and extending debt restructuring facilities,” the PM office said.

“He explained the progress in implementation of decisions taken during the visit of President Ranil Wickremesinghe to China. Prime Minister also thanked President Xi Jinping for the support extended to sectors such as school education, agriculture, health, technology, culture and religion.”

Sri Lanka banned all foreign research vessels after President Wickremesinghe’s government allowed two Chinese research ships within 14 months. The first one in August 2022 called for crew change and replenishment while the second one in October 2023 came for research with a local Sri Lankan organization.

Sri Lanka has imposed the ban after strong protest by India, government officials have told EconomyNext.

Before the meeting with Xi jinping, Prime Minister Gunawardena met Chinese Prime Minister Li Qiang.

The Chinese Prime Minister assured to his sri Lankan counterpart Beijing’s assistance to Sri Lanka’s debt restructuring process continuously and help Sri Lanka to develop its economy .

“During the high level bilateral talks held today (Wednesday) in Beijing, the Chinese Prime Minister praised Sri Lanka’s economic progress after a period of economic downside,” PM office said in a separate statement.

“Premier Li Qiang said his country world also extend assistance to develop Katunayake International Airport, Hambantota Port and Colombo Port City.”

Already Japan International Cooperation Agency (JICA) last month said they will support the construction of the second terminal of the Katunayake Airport after the financial restructuring process is implemented by the International Monetary Fund (IMF).

In January, Sri Lanka government said an Indian firm is in the process of being given to manage Sri Lanka’s three airports including the main airport where the island nation has now seen an over saturation in foreign tourists. (Colombo/March 28/2024)

Sri Lanka has an opportunity to earn foreign exchange as registration from Sri Lanka flag vessels and renewable fees.

Jobs also can be provided for Sri Lankan seafarers on these ships.

At the moment among 173 countries Sri Lanka is at the 88th position.

Panama is a leading flag of convenience to register ships. (Colombo/Mar26/2024)

There were hopes that a ferry service from Nagapatnam in India to Kankasanthurai in Sri Lanka would start from February 2024, but its regular services have yet to start.

The key problem was the ticket prices were very high, High Commissioner Jha told a forum organized by Sri Lanka’s Press Club.

Due to the high costs India had taken a decision to subsidize the ferry which may amount to ‘millions of Sri Lanka rupees’ every day.

Sri Lanka has also offered concessions. Sri Lanka has said the embarkation tax for ferry passengers will be cut to 5 dollars compared to 60 dollars for air tickets.

Related Sri Lanka embarkation tax on ferry services cut

With the combination of governmental support, it is now possible to run the ferry, he said.

A more viable proposition is between Rameswaran in Tamil Nadu and Talaimannar in Sri Lanka.

The Shipping Corporation of India had called for expressions of interest with the option of a calling at multiple destinations, which may improve the viability of the service, High Commissioner Jha said.

The private party will have to invest on a breakwater, sea wall, deep passenger anchorage, channel and land filling.

Mixed development projects would be set up on the filled land, he said.

The PPP would be on a build operate transfer basis. (Colombo/Mar05/2024)

“The establishment of a sustainable human resource development system to address oil spill incident in SLCG is an important initiative for Sri Lanka and Indo-Pacific region,” JICA said in a statement.

Five experts of the JCG comprising two officials from their Mobile Cooperation Team specialized in capacity development, two officers from National Strike Team Station in Yokohama who are in charge of oil spill management in a coastal area in Japan, and one officer from Marine Environment Protection and Disaster prevention Division of JCG conducted the oil spill response training from February 5-22.

The onshore training in Kirinda was held from February 6-12, and offshore training in Dikovita from 14-21. “In the final part of the training, SLCG patrol vessel 501 and 502, which is provided through JICA Grant Assistance in 2018, were used to conduct a comprehensive drill simulating an oil spill incident, utilizing oil fences and other equipment.”

Since the inception of this series of technical cooperation in 2014, more than 200 SLCG officers have joined the training program, JICA said. (Colombo/Feb29/2024)

Dhanusha Marine Lanka Exports (Pvt) Ltd, Neil Fernando and Compnay (Pvt) Ltd, and Northwest Marine Lanka (Pvt) Ltd will participate at the event, held from February 28 to March 3 at Dubai Harbour, UAE.

The boat show brings together manufacturers of superyachts, sailboats, sports boats, fishing boats, and speed boats, as well as equipment manufacturers and other related products and services including diving and fishing, water sports, maritime technology and services.

It’s an opportunity for networking and business opportunities, the Sri Lanka Export Development Board (EDB), said in a statement. “Visitors can explore a diverse range of boats, from small dinghies to luxurious superyachts and witness the latest designs, technologies and innovations in the boating industry.

“The event also highlights the latest advancements in maritime technology, navigation systems, marine equipment and services. Exhibitors and industry experts showcase cutting edge solutions related to propulsion, safety, communication, entertainment and more.”

Sri Lanka is surrounded by the sea, but the island neither has a domestic yacht culture, nor yacht-based tourism activities like liveaboard diving cruises.

The country wants to promote a range of marine-linked tourism activities as well as wider use of yachts including attracting owners to park their luxury yachts in the island, Tourism Minister Harin Fernando said last month. (Colombo/Feb28/2024)

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“The embarkation tax for ferry service will be reduced to 5 dollars, and the fee for other vessels will be brought down to 20 dollars,” Minister Gunawardena said at the Cabinet decisions press briefing on Tuesday.

The move would boost travel between Sri Lanka and India, he said.

Sri Lanka has seen an uptick of Indian tourists.

“Reducing the cost of ferry and ship services drastically will encourage more visitors.

A ferry service from Nagapattinam in India and Kankesanthurai (KKS) in Sri Lanka’s Jaffna peninsula was launched last October, boosting people-to-people links between the two countries. (Colombo/Feb20/2024)

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“We continue to grow our RORO and bunkering businesses and saw exponential growth in 2023,” Lance Zuo, General Manager, Commercial and Marketing of HIPG said in a statement.

“In 2024 we will be looking at container transshipment for which the port is now ready.”

HIPG delegation had met with Ports Authority of Thailand and Ranong Port to strengthen a partnership. HIPG hoped to invite teams from the Thai port authority and the Ranong Port to explore and evaluate possible business opportunities.

HIPG had signed an agreement with the Thai Port Authority before the Covid pandemic hit the global economy.

“But now, the time is right to reconnect with Thailand, particularly with the Ranong Port, because international businesses are seeking more and more opportunities with the Sri Lankan economy,” Johnson Liu, Chief Executive of HIPG said.

“As ports, one of the most important aspects is our location, in terms of offering the best connectivity to businesses on key maritime routes, and secondly, providing efficient services and facilities in order to ensure easy cargo movement, transshipment and transportation.

“Connecting with the Ranong Port which operates under PAT is an obvious choice for Hambantota International Port in making strides to the BIMSTEC region.”

Late last year HIPG took part in the Port Development South East Asia Summit (PDSEAS 2023) in Vietnam, the only South Asian port to do so.

“Here in Hambantota, we have the strategic advantage of being in close proximity to the East West sea routes,” Liu was quoted as saying last November.

“Whilst connecting to this advantage we are looking at ports in the South Asian region and direction to HIP.

“This enables us to project our services to these ports and provide logistical support to those who wish to connect with HIP either for transshipment or to actually set up a base to manufacture products in Sri Lanka, for export to various markets within and outside the region.

“While our transshipment business in RORO has expanded tremendously, HIP is developing the next area of expansion by opening up its industrial park adjacent to the port complex.”

China’s CM Ports group which has a stake in the Hambantota Port operating company, also owns a container terminal in Colombo.

China also plans to link Sri Lanka to a Myanmar economic corridor. (Colombo/Feb14/2024)

The International Labour Organization had suggested that Sri Lanka improve gender equity in the port.

“I am a great fan of gender equity,” Minister de Silva told a forum where a capacity building project The Colombo Plan organization with US funding commenced.

“So, I suggested ‘Why don’t you train some lady gantry operators?”

Operating gantries it the key to operational efficiency of a container port and it is a premium salary job.

Minister de Silva said the ILO gave funds and Seafarers Association came forward to help.

About 50 females were selected from around the country and trained. After theory classes were completed at the Mahapola training centre, practical training was the next step.

The students were given letters of appointment as trainees for six months at the port.

“The unions went on trade union action at the port,” Minister de Silva said. “They said, ‘You can’t do that’, you have to give permanency to all other people before getting new trainees to the port.”

There were serious challenges to making any changes, he said.

The Port faced similar opposition when the first private terminals were built he said. (Colombo/Feb03/2024)

The Colombo Plan program with funding from the United States is carrying out the three-year program.

“The program will build human resources as the port competes in the region as a major hub,” lead consultant to the program Rohan Masakorale said.

Colombo Port has already started building terminals that will see capacity doubling to 15 million containers by 2026, Sri Lanka Ports Authority Chairman Keith Bernard said.

The program will boost sustainability of maritime and port operations in Sri Lanka by introducing modern port systems, new technologies, and international best practices.

The initiative will see technical training exchanges, conferences, visits to US ports and workshops conducted by both local and international experts.

US Ambassador Julie Chung said the program will help boost the efficiency and reduce vessel turnaround times.

The US separately was also funding a new terminal at the port being built by India’s Adani and Sri Lanka’ John Keells Holdings.

This collaborative effort aims to enhance the capabilities of ports, improving efficiencies and expanding the delivery of value-added services.

More than 300 oil and gas vessels had called at the port up, 132 percent from the crisis year in 2022.

A key reason for this is the port’s bunkering partner Sinopec actively operating in the market, bringing significant value addition to the HIP’s commercial operations.

The overall oil and gas throughput handled by the port in 2023 was 918,000 metric tonnes with 700,000 MT of bunker and 218,000 MT LPG cargoes.

“We are looking at the energy sector as a growth market for HIP and are actively promoting it,” Chief Operating Officer of Hambantota International Port Group (HIPG) Tissa Wickremasinghe, said in a statement.

“We expect these figures to more than double in the current year. With Sinopec partnering with HIP, we are changing the dynamics of bunker supplies in the Indian Ocean, adhering to the highest levels of health and safety.”

A total of 35 vessels called at HIP in July 2023, making it the month for the highest number of calls during the year.

LPG vessel calls had increased 186 percent and bunker vessels 125 percent in 2023 from 114 bunker and 15 LPG vessels that called in 2022. (Colombo/Jan31/2024)