Trincomalee Oil Tank Farm and Port Development: to boost foreign exchange
- 5opn1
- January 15, 2025
- Investment
- Trincomalee Oil Tank Farm and Port Development: to boost foreign exchange
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In line with the new government’s energy policy and plan, significant efforts are underway to generate substantial foreign exchange for the country through the development of the Trincomalee Oil Tank Complex.
This initiative is a collaborative effort between Lanka IOC and the Ceylon Petroleum Corporation. The work is being spearheaded by Trinco Petroleum Terminal Ltd, a joint venture between Indian and Sri Lankan stakeholders.
Although these tanks were constructed during the British colonial period, they remain in excellent condition. Necessary minor renovations and the establishment of a pipeline system will enable the supply of fuel to ships.
The complex will also be developed into a storage hub. By integrating efforts with the Ministry of Transport, Highways, Ports, and Civil Aviation, and through synchronized port development activities, the initiative aims to deliver tangible benefits to the nation.
Energy Minister, Engineer Kumar Jayakody, emphasized this during an observation tour of the Trincomalee Port Oil Tank premises. He stated that the coordinated efforts would lead to significant advancements in the country’s economic framework.
Deputy Minister of Ports and Civil Aviation, Ruwan Janith Kodithuwakku, who also participated in the observation tour, expressed his views.
He highlighted that the Trincomalee Port, regarded as the fifth-largest natural harbor globally, would be utilized efficiently to benefit the national economy
He added that the oil market project centered around these tanks aligns with the broader strategy of positioning Sri Lanka as a maritime hub.
The implementation of this strategy will complement the port development plan, with a national roadmap expected to be presented in the coming months.
The observation tour covered the Trincomalee Port, the oil tank premises managed by the Ceylon Petroleum Corporation, and facilities overseen by Trinco Petroleum Terminal Ltd and Lanka IOC.
The Trincomalee Oil Tank Farm in Sri Lanka is being developed as a joint venture between the Ceylon Petroleum Corporation (CPC) and Lanka IOC (LIOC). The project aims to renovate the tanks and build new infrastructure to store oil and petrochemicals.
The British built the oil tank farm in the 1930s as a refueling station for World War IIThe Indo-Lanka peace accord of 1987 called for India and Sri Lanka to jointly restore and operate the facility
In the early 2000s, the government of Prime Minister Ranil Wickremesinghe considered giving the tanks to India, but the deal was not finalized
The Cabinet of Ministers approved the Trincomalee Oil Tank Complex Development Project in January 2022
The CPC and LIOC have agreed to jointly develop the 61 tanks held by Trinco Petroleum Terminal (TPTL) The first phase of development will focus on renovating nine tanks, building a pipeline, and constructing other facilities
The government is evaluating offers from potential investors for the project .The Trincomalee Oil Tank Farm could become a major storage terminal for energy trade between the West and Southeast Asia, The project could provide India and its allies with an energy infrastructure and security for ships
