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PM inspects HIP progress

18 Dec 2021

By Uwin Lugoda Prime Minister Mahinda Rajapaksa recently paid a visit to the Hambantota International Port (HIP), where he inspected the port and was given a comprehensive briefing on its ongoing development projects. The visit took place last Tuesday (14), with both Prime Minister Rajapaksa and the Ambassador of China to Sri Lanka Qi Zhenhong, alongside Ministers Prof. G.L. Peiris, Chamal Rajapaksa, and Namal Rajapaksa, engaging in a multi-faceted inspection tour of the HIP. This visit also coincided with the port achieving a milestone of 500,000 roll-on/roll-off (RORO) vehicles handled in 2021, for which the Prime Minister participated in the ribbon-cutting ceremony. During the event, Hambantota International Port Group (HIPG) CEO Johnson Liu greeted the guests and showcased the progress and success of the port.  He pointed out that the port acted as a beacon for the economic development of Sri Lanka’s southern region.  The visit also included the laying of the foundation stone for the port’s first bonded warehouse project, after which the Prime Minister was accompanied by the port team to inspect the construction sites of plants being set up by the Xinji Shenzhen Group and Ceylon Tyre Manufacturing Company. Port tour overview  The Premier also took time to inspect the slope protection project initiated by the port to stabilise the area for the tyre manufacturing facility, which is a $ 300 million investment. The project is being developed on 55.8 hectares of land. This includes a scope for an additional 16 acres for its second phase and has a commitment to export 30,000 container units annually, while also estimated to create more than 3,000 job opportunities. The $ 15 million plug and play park facility by the Xinji Shenzhen Group, a high-tech facility to provide “one stop” services to light industries, is also set to be built on 3.07 hectares of land and will create approximately 500 additional jobs. The Prime Minister and his delegation were given a brief introduction to the Master Plan for the HIP Industrial Park by Liu. The delegates were briefed on the new Hope Village project being established by the port to benefit surrounding communities which will help develop livelihoods in animal husbandry and agriculture.   “HIPG’s vision is to inspire positive change and empower people and communities while protecting the environment and people to create a sustainably powered future,” said Liu.  In line with that, HIP has carried out 43 CSR projects since 2018, with more than Rs. 80 million donated for the upliftment of local communities. The tour ended at an event held on the 12th floor of the Hambantota Maritime Centre, where HIPG Chief Operations Officer (COO) Tissa Wickramasinghe presented the Prime Minister with a project report on all the development activities at the HIP.   Projects underway at the HIP The logistics warehouse facility, which is being built by Hambantota Port and Logistics Services (Pvt.) Ltd., the warehousing arm of the Colombo Logistics Group to store bagged cargo, is being developed on a land area of approximately 1 hectare within the port. The Colombo Logistics Group, the first local investor for warehousing in HIP, has 14 years of experience in developing large scale ventures, acquiring a reputation for fast-paced expansion in the country’s logistics sector.  The new warehousing facility, once completed, is expected to develop HIP’s plans for fertiliser distribution both locally and for transshipment, the statement said.   The port was able to increase RORO volumes this year by introducing effective new strategies and the formation of partnerships with new RORO lines to bring transshipment cargo via HIP. The innovative approach resulted in the 500,000 units of small and large vehicles handled in 2021, amidst continuing challenges brought on by the pandemic. The vehicles transshipped are mainly manufactured in India, Thailand, Japan, and Korea and destined for Africa, the Middle East, Far East, and South America.  Addressing the port’s success model, CEO Johnson Liu added: “Hambantota International Port, with its mission to become a world-class seaport, is now operating across a number of business sectors not limited to RORO, bulk, and general cargo. As per Sri Lanka Government requirements, the SLPA, Sri Lanka Navy, Sri Lanka Police, and Sri Lanka Customs operate within the port, overseeing its overall security. We at HIPG put in place a blueprint titled ‘HIP Speed’ which is specifically designed to clear bottlenecks and build processes that do not stand in the way of implementing projects on time. Our deadline for completion of projects is much tighter due to this, which has helped us that much more to bring suitable investment to the port. We are ably supported now by two government agencies, the Board of Investment and the Industrial Development Board, who have offices at the Hambantota Maritime Centre situated within the port. This would help us to smoothen the initial investment and implementation process and in turn build confidence among those who want to partner us in projects.” Operationally, the port has been fast tracking processes not only for its short-term needs, but looking to the future in terms of what infrastructure will be required to position port activity in the various sectors, for fast development under HIP Speed. The masterplan for the port is being followed meticulously and HIP is now in the process of developing upstream and downstream supply chains for the smooth operation of its industrial zone. So far, 42 enterprises have signed agreements with HIPG to enter the industrial park, of which 10 projects have already commenced construction. Eight new projects are to be signed soon, while another 15 projects with key potential are in the pipeline. The Hambantota Port will be a symbol of the long-term friendship between Sri Lanka and China, and Liu said the China Merchants Group will continue to contribute to the economic development of the Hambantota region.

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