Page 79 - journal_2020_july_uploaded_2022_mar_16

Sri Lanka Navy Journal 66

Hambantota Port. A proper evaluation of the internal and external environment
of Hambantota port is a timely requirement to formulate a business strategy.
Hence, based on the prevailing situations, SWOT analysis was conducted to
identify strengths, weaknesses, opportunities and threats of Hambantota port.

Hambantota port is conveniently positioned along the busiest East-West
shipping line, lies through the Indian Ocean; is its biggest strength. Port’s
strategic location has enabled the connectivity among interregional and
intraregional ports. Around 8 to 10 ships passing Hambantota port at every hour
signifies that, it is located close to a good traffic position. The port is one hour
away from the main shipping line, makes it the closest port to the
shipping line in the region. CM Port Company Limited took over
Hambantota port when GoSL decided to lease it in 2017. The company
is a large conglomerate well experienced on port operations and handled
th
100TEUs in 2017, ranking 5 in the world port operations. The capacity of
the company is strengthened to Hambantota port and it is more than
adequate to convert Hambantota port into a leading port in the region. In
addition, developed nations and large firms have expressed their interest in
investing in Special Economic Zone in the hinterland. Therefore, Hambantota
port can be used to facilitate trade in Special Economic Zone. So far, the port has
been able to successfully offer general port services to the shipping lines at a
lucrative rate. Favourable climate, natural depth along the coast and state
interest for expansion can be considered as major strengths of Hambantota port.
Asia has grown to become the largest economy in the world. New emerging
markets in Asia have facilitated intra-regional trade. Simultaneously, the
container business has grown rapidly in the region. Hambantota Port can make
use of the opportunity and attract these flowing cargos in the Indian Ocean.
Further, Hambantota Port should look beyond transhipment of cargo. Multi-
country consolidation is another cargo handling system, where
Hambantota port can be focused. Seventy-five per cent of total cargo
handled by Sri Lanka is through transhipment. Moreover, Sri Lanka can increase
outbound cargo by increasing its domestic production. Colombo port is already
an intra-regional port and handles cargo of sub-continent. Hambantota port has
the potential to exploit some of the regional cargo heading towards Colombo. In
addition, infrastructure flexibility is essential in adapting to new or changed use
in port operations. Sri Lanka can get the assistance of HIPG to convert
infrastructure to match the changing needs of the shipping industry.
Well-connected logistics cities within the country are essential to the best serve
ship liners. If logistics services are established in the country, it will further
extend an opportunity to capture new shipping companies. BRI has brought a
significant portion of Chinese investments to Sri Lanka. Being a part of the BRI
network, it allows linking the island's economy to the regional and global