ECONOMYNEXT – Sri Lanka’s Trinco Petroleum Terminal Ltd, a joint venture between state-run Ceylon Petroleum Corporation and India’ Lanka IOC, plans to invest up to 70 million dollars in refurbishing 61 oil tanks in Trincomalee, an official said.
TPTL has control of 51 tanks in a World War II era tank farm in a 600 acre land by the Trincomalee port in North Eastern Sri Lanka. The tank farm has 99 tanks of which 15 is operated by Lanka IOC. The balance is expected to be used by CPC.
In the first phase 10 tanks with a capacity of 10,000 metric tonnes each will be refurbished and pipelines for white and black oils will be laid Managing Director of Lanka IOC Manoj Gupta said during Sri Lanka’s Colombo International Maritime & Logistics Conference.
Phase 1 is estimated to cost between 15 to 20 million US dollars. Phase 1 is expected to be completed in 2023.
The contract for a detailed feasibility study has been awarded to PWC India, Gupta said.
A separate consultancy has been engaged to study the condition or ‘health assessment’ of the tanks.
The tanks would be leased to Ceylon Petroleum Corporation, Lanka IOC and third parties, Gupta said.
Some tanks could also be used for ship bunkers.
The connection of a Single Point Buoy Mooring System (SPBM) would allow tankers up to the size of 70,000 dead weight tonnes from the current about 30,000 DWT, bringing down the premiums paid to suppliers, Gupta said.
In a second phase 51 tanks would be refurbished. It could cost between 42 to 50 million US dollars.
So, where is the money coming from? Some politicians will benefit a lot from this transaction and ordinary people will be left holding the bag.
The agreement with IOC by CPC should be published for our perusal. And how many tanks are covered by the Agreement out of the 84 tanks left,?