Don’t perceive Hambantota Port and Airport as white elephants!
Some politicians call this a white elephant project, either for political gain or without having any knowledge about such projects. These projects could be transformed into profitable ventures with proper planning and guidance. The Hambantota port, geographically located in the world’s busiest shipping routes between East and the West and Mattala airport located just 20 minutes away by bonded trucking route from the port, is an ideal location for a sea/air hub and a Free Trade Zone (FTZ) which is very similar to Jebel Ali port, Free zone and Dubai World Centre (DWC) airport in Dubai, UAE.
Today Dubai’s success is thriving on being a significant player in the international trading and transport logistics. The Sri Lankan government should initiate a strategy with the private sector in developing key sectors that will contribute to the economic growth, including transport, logistics and Free Trade Zones which will bring more foreign investment to the country. Hambantota is an ideal location for a FTZ and a sea-air multi-model transport hub with a cost effective transport mode that provides considerable savings in transit time and freight cost. It has been observed that a number of countries across the globe are considering building Free Trade Zones to facilitate investors and business people to establish their businesses.
Free zones are structured around contemporary business needs and offers companies an ideal base to do business with generous incentives, tax and duty exemptions, full repatriation of earning, freedom of total ownership, comprehensive facilities and modern infrastructure. The world is transforming beyond imagination, evolving technologies and consumer preferences are changing the dynamics of business all over. Today’s business success invariably calls for faster operational abilities and an environment that is conductive to growth. Free trade zones abilities depend on its territorial strengths such as tourism, logistics, distribution and manufacturing.
Free trade zones are ideally located near a sea port or an airport and Hambantota is an ideal location to become the investor’s focal choice as a free zone destination. This location could be an ideal location for various industries such as agricultural industries, manufacturing, processing, distribution, assembling and packaging, aviation industry, pharmaceutical products, logistics and freight, warehousing and storage, IT and mobile accessories etc. The government should approach Chinese companies migrating from their own fledging economic regions to focus away because of the trade war with US and Hambantota could be an ideal regional hub for investors from South Asia and Asia.
With proper planning and positive business climate to establish a free trade zone, with the introduction of various tax incentives, investment incentives no doubt investors and the people of Sri Lanka could benefit. This will create economic growth and job creation for thousands. Development of free zones will help the economic status in the nearby cities with business tourism and hotels which will be an incentive to the people to upgrade their life styles while direct and indirect employment opportunities for thousands of Sri Lankans will boom. There are opportunities straight ahead – A new way of thinking is needed to make such projects successful with the support of certain line ministries to work together as a team.
- Shennal Angunawela
(The writer is Director – Commercial and Operations, Airline Cargo Resources Free Zone, Dubai Airport Free Zone, Dubai)