“THE ROAD TO HAMBANTHOTA”
W K H Wegapitiya
Chairman,
LAUGFS Holdings Limited
An Investor’s Perspective
Project Timelines
• Start: August 2016
• Completion: April 2018
Project Capacity & Capabilities
• Storage capacity – 45,000 m/tons of
pressurized LPG
• Product handling capacity – 1,800,000
m/tons of LPG annually
• Ability to store Propane and Butane
separately, facilitating the export of mix
LPG
Project Introduction
The Project
• Largest LPG import, storage and re-export
terminal in the Indian subcontinent
• Total estimated investment is USD. 85 million
• First private sector investment with ”Hub” Status
Project Contributions - to the National Economy
Total value of re-exports of LPG by this project in 2020 is expected to be US$ 1.3 Bn
This project will
contribute 6% of
total exports
earning projected
by 2020
Sri Lanka will become a leading energy re-exporter and an energy hub in Asia
Sri Lanka will become and energy trading hub in the Indian Ocean
Total Sri Lankan export earnings is US$ 11.3 Bn in year 2015
Projected to grow to US$ 20 Bn by 2020
This project will require 15 to 20 LPG ships to provide logistics support – VLGC, Fully refrigerated and midsize pressurized LPG carriers
This will create about 500 new employments in the maritime sector, other than the direct project related employments
USD.5.5 million additional annual income to the Sri Lanka Ports Authority
Growth in the Sri Lankan maritime industry – Ship chandelling, ship repairs, maritime training
Project Contributions - to the Maritime Industry
Growing Global LPG
Demand is Visible
• Global LPG demand is growing rapidly
• Asian countries are the major contributors
• Most strategic location in the Indian Ocean
• Most competitive LPG pricing for the
domestic market
Economic and Business rationale
Most competitive LPG
pricing for the
Domestic market
Major Demand is
coming from Asia
Strategic advantages of Hambantota
Located at the center of the Indian Ocean
Closest to the international sea lane connecting West and the East
Average of 45,000 ships passing southern tip of Sri Lanka annually and 25% of them
are reported to carry energy including LPG
All weather Port – no impact from the monsoon effect
Deep Port - 19 meter draft which can accommodate VLGC’s
Brand new berthing facilities with pier based unloading and loading arms
Dedicated berth for energy (LPG) handling
Free Port status with many concessions
Especial investment concessions under BOI
- Hub status – 25 year tax holiday which can
be extended further period depending on the size
investment
13 Ports to the East import LPG
17 Ports to the west import LPG
Maximum 5 days of sailing to the East
Maximum of 7-10 days to the West
Most logistic and cost competitive location for LPG business
Logistic Competitiveness for LPG
Logistic competitiveness of Hambantota 1. Singapore
2. Port Kelang
3. Penang
4. Thilawa
5. Yangon
6. Chittagong
7. Dhaka
8. Mongla
9. Haldia
10.Paradip
11.Vishakapatnam
12.Krishnapatnam
13.Madras
5 days
4 days
4 days
3 days
3 days
4 days
4 days
4 days
3 days
3 days
2 days
1 day
1 day
1 day
11 days
9 days
2 days
1.5 days
2 days
3 days
3.5 days
4 days
5 days
5 days
9 days
7 days
15 days
9 days
7 days
1. Tuticorin
2. Kochi
3. New Mangalore
4. Mumbai
5. Rathnagiri
6. Pipavav
7. Port Qasim
8. Karchi
9. Maldives
10. Mauritius
11. Madagascar
12. Reunion
13. Mombasa
14. Dar Es Salam
15. Rechard Bay
16. Durban
LAUGFS LPG TERMINAL HAMBANTOTA
- A Contributor Towards Economic and Social Prosperity
for Sri Lanka and the Region
PROJECT ASPIRATIONS