Vehicle Carrier, Glovis Sun sailing under the Marshall Islands flag, helped the Hambantota International Port (HIP) to reach its highest discharge volumes to date, when 5,000 transshipment units were discharged in record time last month.  The discharge operation was completed 22 hours prior to the expected time and the vessel was able to depart well before schedule the following day.  “The Glovis Sun was on a very tight schedule, therefore, the efficiency and quality service of the operation was an outstanding achievement for the port, especially on a vessel with such high volume,” said Tissa Wickramasinghe COO of HIPG.

Ever since HIP initiated discussions for a TSA with Glovis and terms were agreed on, the Shipping Line’s volumes have been on the increase.   By end 2018, Glovis was able to record their best year in terms of volume, with an outstanding number of vessels handled.  Taking into account the port’s up to date equipment, expertise and service quality, the shipping line moved a lot of their high and heavy cargo via HIP.  Following this success, a two year TSA between Glovis and HIP was signed in January this year.

“We are extremely happy with the services provided by Hambantota Port and after HIPG took over, facilities for RORO operations have been streamlined making it an attractive destination for transshipment. Hyundai Glovis, which mainly brings in vehicles from the East coast of India has seen a growth in volumes and with the safety standards in the port being maintained we believe that we can grow our business from HIP,” says Lalindra Fernando, Director of Sharaf Shipping Agency, who are the local agents representing Hyundai Glovis.

A TSA with Norwegian Shipping Company, Hoegh Line, soon followed, with the agreement signed in February 2019.  Strong in both European and Indian markets, Hoegh liners are especially known for the transportation of heavy vehicles.  Since HIP came under the CMPort umbrella, Hoegh has rekindled their interest in the port, doing more than 10,000 units in 2018 – a marked increase from 6500 units in 2017.  The Shipping Company has channeled 8000 units via HIP in the last six months alone, clear proof of the confidence and trust placed in the port.

In addition to Glovis and Hoegh, HIPG has signed contracts with another international player, for RORO business, bringing the Port closer to achieving its hub status for the Indian RORO market.

Sinopec wins bid to operate tank farm

The Hambantota International Port (HIP) recently awarded a tender to Sinopec Fuel Oil Sales Co. Limited for oil trading works and the operation and maintenance of their oil tank terminal along with associated facilities.  

Bunkering being an important part of the marine services portfolio offered by Hambantota International Port (HIP), the oil tank terminal in partnership with Sinopec Fuel Oil Sales Co. Limited will provide high grades of marine fuels compliant with the IMO 2020 Low Sulphur Rule as well as other ancillary facilities to marine liners calling and passing through Hambantota.

“The partnership with Sinopec, who are one of the largest providers of bunkers worldwide, underlines our goal of becoming a bunkering hub for the entire region.  Plans are already in the pipeline to expand our tank capacity in the near future,” says Ray Ren, CEO of Hambantota International Port Group (HIPG), adding that HIP intends taking maximum advantage of its location, just 10 nautical miles from the main sea route connecting east and west, on which ply more than 31,000 vessels each year.  

23 interested parties from Singapore, China, India, Dubai and Sri Lanka, had purchased tender documents and participated in the pre bid meeting, held at the Port.  Tissa Wickremasinghe, COO of HIPG says that the tender process was transparent and in accordance with international tender evaluation processes and practices.  He adds that Sinopec was awarded the tender for its global network and terminal operation experience, “We believe this cooperation would help us to provide cost-competitive and high-quality products as well as effective and safe services to our customers.”

Han Xueling, Deputy General Manager and Chief Accountant of Sinopec Fuel Oil Sales Corporation Limited says, “With our capability as the largest oil product supplier in China, we considered it our responsibility to start the production and supply of low Sulphur fuel (LSFO) and MGO. Hambantota International Port is one of the many world ports, we would be supplying marine fuel to in 2019, and we guarantee the supply of VLSFO to service all Indian Ocean vessels.  We look forward to a long-term partnership with HIP who we consider as a strategic hub in South Asia.”

Headquartered in Beijing, the Sinopec Group is the largest oil and petrochemical products supplier in China.  Sinopec Fuel Oil Sales Company, covers all key ports in China’s coastal areas, and operates in more than 40 overseas key ports worldwide.  They own and operate 25 in-use oil depots with a storage capacity of more than 1 million cubic meters and more than 100 oil barges are in use.  SFO’s main business scope includes fuel oil, distillate products, LNG, LPG, asphalt, chemical products, ship repair and marine accessories, tank farm design and construction, etc. with 8 branches in Liaoning, Tianjin, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian and Guangdong, 2 wholly-owned subsidiaries, Sinopec Zhoushan Petroleum Co., Ltd. in Zhejiang Free Trade Zone, which owns China’s bonded oil business qualification and Sinopec Fuel Oil Singapore Company，and a joint venture with BP in Singapore.

With its wide network and expertise, the Sinopec Fuel Oil Sales Company would promote Hambantota Port as another marine fuel supply center for their global clients, to fully utilize the advantage of the strategic location of Hambantota Port.  According to current trend Low Sulfur Fuel Oil (LSFO) with 0.5% sulfur content, will be the main marine fuel choice in 2020.  Sinopec with their vast resources, will guarantee the supply of LSFO and MGO in Hambantota, enabling the port to serve all vessels passing the Indian Ocean, by Q4 of 2019.  

“Due to their global networking strength, Sinopec will be in a position to offer competitive pricing, opening doors for local parties hoping to provide bunkering services.  We plan to expand the port’s capacity — in fact we estimate the volume to surpass 1 Million TPA (tons per annum) in the space of five years, bringing us closer to our goal of establishing Hambantota Port as a bunkering hub in South Asia.  HIP will also be looking at a number of associated services such as FW supply, sludge removals etc., which are already in the pipeline,” says Ray Ren, CEO of HIPG.

The Board of Investment of Sri Lanka (BOI) has established a one stop service centre at the Hambantota International Port (HIP), to provide investors in the port and related services, with easy access to avail themselves of concessions open to them. 

A ceremony was held recently at the Business Centre of the Hambantota International Port to launch this service with the attendance of Minister of Development Strategies and International Trade Malik Samarawickrama, Chinese Ambassador to Sri Lanka Cheng Xueyuan, Mrs. Champika Malalgoda, Director General for the Board of Investment of Sri Lanka, Ray Ren, CEO of Hambantota International Port Group (HIPG), Tissa Wickremasinghe, COO of HIPG and Captain Ravi Jayawickrama, CEO, Hambantota International Port Services (HIPS).

This is a new joint initiative of the BOI with HIP.  The BOI would play the role of a facilitator with the long term goal of improving Sri Lanka’s ranking on the World Bank’s Ease of Doing Business Index. HIPG whose principal shareholder is CMPort, one of the world’s leading port operators is targeting port related activities within the 3.5 square kilometer area allotted for the port’s development. Together with their local partner SLPA, HIPG is working towards making this initiative a reality.

“This is an entirely new concept in Sri Lanka and HIPG is very excited about promoting this locally and internationally, to attract port related industries to Sri Lanka. The Hambantota Port is a uniquely placed not just in Sri Lanka but on the global maritime map, the main reason being it’s positioning in close proximity to the sea lane connecting east and west.  The fact that it is not located in a congested city, but has enough land space to expand, will also provide great opportunities for investors” says Tissa Wickremasinghe, COO of HIPG.

It would also be a boon from the point of view of both local and international export related businesses, as they would have easy access to information on incentives and facilities the BOI could offer them.  The One Stop Service Center would be a launch pad for the next stage in port development, where Sri Lanka would join international trade and commerce, from the southern part of Sri Lanka.

The vision of Hambantota International port is to create the right mix to take port development from merely a destination for sea going vessels, towards commercial, marine services and lifestyle concepts — more so when one considers how airports have developed in recent years. HIP operates across five platforms, providing RO-RO, conventional cargo, oil & gas, container, bunkering and cruise services along witha wide range of client and industry-specific services to ensure that fleets remain in operative condition. The services include bunkering, ship repairs, ship chandlers, sea marshals, underwater services, surveys and crew changes. The Hambantota International Port is positioned to be the one-stop logistics platform that caters to all, offering an integrated package that could be tailor made to their customers’ needs. Reinforced by Hambantota’s geographic location, the port offers an unparalleled experience of air and sea connectivity.HIP is also looking at the wider arena of yacht and leisure travel, and working towards facilitating cruise travelers who use the port as a calling destination.  In order to achieve these goals, HIP has taken into consideration, their close proximity of the Mattala airport and built processes for air-sea cargo movement.

The one stop service centre will be an added advantage to the array of services and incentives, investors could choose from.  Ray Ren, CEO of HIPG says, “while we are looking at developing the various silos of the port such as leisure, commercial, bunkering, transshipment, Ro Ro operations, we also see this as a great opportunity to move the Sri Lankan economy into a super charged position to attract investors. After setting up of the one stop service center we are awaiting a national free port policy for the Hambantota Port to encourage investors.”

The Hambantota Port is in line with the national vision for port development in Sri Lanka and responds to the SLPA’s future growth plans for a modern port, free of urban restrictions, assuring long-term expansion capacity and a world standard industrial and logistics zone. A platform that can receive main players of port, maritime, industrial and logistics sectors, that adhere to the highest standards of integrity.

HIP will provide a variety of services from container handling, general cargo, RORO, passenger, bunkering, bulk terminal, gas to project cargo.  It is well on it’s way to becoming one of a kind, as the only port in the country, designed to handle the full gamut of services in the maritime and logistics area. HIP plans to present economically efficient and environmentally sound intensive benefits and port services to all port users and stakeholders.

China Merchants Port Holdings Company Limited (CM Port), is the principal partner of HIPG, has been named the largest globally competitive public port developer, investor and operator in China, with investments in Mainland China, Hong Kong and overseas. CMPort operates in 5 continents, 18 countries and 34 ports.

In line with their vision to make HIP a  world class sea port, the Hambantota International Port Group is focused on continuing to exceed stakeholder expectations, significantly increasing their performance in 2018.  Over 300 vessels with different service requirements called at HIP and the port doubled its Ro Ro throughput volumes reaching 235,000 units.   Break-bulk throughput in 2018 was 170,000 tons and the port widened the scope of its services from Ro Ro operations  to bulk, break-bulk, project cargo, cruise and are currently working on extending to ship supply services, repairs and layups, bonded warehousing, etc.  Another achievement by HIPG is their partnership with a global player for bunkering expected to begin in the final quarter of 2019.  HIP also works closely with Litro and Laugfs for LPG, bringing them a step closer to their goal of becoming an energy hub. 

The port is currently involved in developing port related industry and are looking at setting up a number of industries including construction, food and energy.  As a part of giving back to the community, HIP has created approximately 700 jobs directly with another 2000 job opportunities indirectly for the locale.  They have undertaken a number of projects to uplift adjacent communities, recently pledging a sum of Rs. 30 million to completely revamp a school in the Hambantota Tissapura area.

Prime Minister Ranil Wickremesinghe made an official visit to the Hambantota International port last Saturday (30th), whilst on a visit to Hambantota.  The PM who was accompanied by Minister of Ports Shipping & Southern Development, Sagala Ratnayake and Chairman SLPA Karvan Ratnayake, was given a tour of the facilities as well as a detailed rundown of the port’s activities and achievements during the last year.

The CEO of HIPG Ray Ren and COO Tissa Wickremasinghe appraised the Prime Minister, the Minister of Ports and Chairman SLPA of the rapid development of the Port’s Ro Ro business.  They also explained in detail HIP’s 2019 plan to provide bunkering and marine related services while mentioning that the bunkering tender has been awarded to a Company listed on the Fortune 500 list. 

The Prime Minister expressed his satisfaction of the port’s progress.  In response to a question posed by the PM, on trickle down benefits to the community at large, the HIPG officials had explained that the port  provided employment for over 700 people in and around the Hambantota district and 2000 indirect employment has also been created. It was also explained that there were further plans to provide more job opportunities once the 3.5 sq. kilometer area for port related industries within HIP was completed. Multi national companies have already engaged in investments at the port paving the way for confidence of other potential investors. 

On the final leg of the tour, the PM and the and the Minister of Ports & Shipping were given a birds eye view of the entire port premises from the 12th floor of the administrative building.

A delegation headed by US Ambassador to Sri Lanka & Maldives, Ms. Alaina B. Teplitz, visited the Hambantota International Port on the 27th February 2019.

The visit was a part of the US Government’s mission to meet senior government and private sector officials, to discuss investment opportunities in Sri Lanka as well as to tour key economic development projects. The Ambassador was accompanied by U.S. Embassy Public Affairs Officer, David McGuire and Senior Defense Officer/Defense Attaché, Lt. Colonel Douglas Hess.

COO of Hambantota International Port Group (HIPG), Tissa Wickremasinghe, met with the 3 member delegation, along with Rear Admiral (Retd) Jayantha de Silva, Head of Security, Hambantota International Port Services (HIPS). The US delegation was briefed on the port’s facilities, while the COO explained the development status and future planning of the Port to Ambassador Teplitz.