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The Sri Lanka Ports Authority (SLPA) has revealed that it intends to begin bunkering at the new south coast port of Hambantota in May 2011 as the only licensed supplier.

The port authority's plan to supply in Hambantota was first revealed towards the end of 2009. It is expected to commence high seas bunkering in May 2011 once the new tank farm is completed. The new fully-fledged tank facility will have the capacity to store up to 80,000 metric tonnes of marine fuel and is expected to be ready within the next four months.

The SLPA plans to initially begin its new supply operation with four bunker barges. Additional barges are expected in the future as bunker volumes increase.

The country's Ports Chief Dr. Priyath Bandu Wickrema recently stated that an ambitious plan has been devised for Hambantota to become a key port in Southern Asia.

Asked how Hambantota would be able to remain competitive against neighbouring ports where bunker prices were highly competitive, Wickrema said: “Unfortunately we are not in a position reveal details about it, but it will be a very viable plan.”

A previous plan revealed by officials in 2009 was that bunker prices would initially be on a break-even basis during a 'promotional phase' of the new bunkering operations at Hambantota.

“If we start small we will not be able to compete, but if we enter into the picture in a big way, I believe that we can achieve [our goals],” Wickrema said last week.

Asked if a rival project in Maldives would affect Hambanthota’s bunkering prospects, Wickrema said: “Maldives doesn’t even have a port. They don’t have water, food or human resources. Not even Singapore or Dubai will be a match for us.”

Hambantota harbour is located close the world’s busiest Sea Line of Communication (SLOC) - the East-West route - with over 100,000 vessels passing by every year, or around 275 per day. The Sri Lankan government is confident that Hambantota can evolve to become a major hub for the whole of the South Asia region.