Deep water bunkering terminal at Port of Colombo:

Feasibility and economic impact – Part 1

- By Shashi Dhanatunge

THE Port of Colombo, Sri Lanka's busiest harbour, is strategically located on East-West shipping lanes. However, its current bunkering facilities are modest when compared with it's world ranking. Establishing a deep water bunkering infrastructure at Colombo would allow Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs) to call for replenishing stocks. This report evaluates the required infrastructure upgrades, investment costs, timeline, revenue projections, and economic impact of such a project. It also compares outcomes with and without the project and identifies a suitable development zone at the port.

To accommodate VLCCs/ULCCs and high-throughput fuel operations, Colombo's port infrastructure must be enhanced:

Mooring facilities: A dedicated oil berth (or single-point mooring) capable of berthing VLCC/ULCC is crucial. This includes heavy-duty mooring dolphins, fenders, and navigation aids to handle vessels over 300 m LOA. The berth should be sited to avoid impeding container traffic - likely at the harbour outer edge or near the new breakwater.

Tank farm and pipelines: Onshore storage must expand significantly. New tank farms (e.g. 100,000-200,000 m³ total capacity for various fuel grades) with pipeline connections to the berth are needed for high-speed discharge. For example, Sri Lanka's Hambantota Port built a tank farm (initial 500,000 tonnes annual capacity) as part of its bunker terminal. Colombo would require a comparable or larger facility. Pipelines should support rapid transfer (loading/unloading rates to turn around a VLCC within 24 hours).