Business Times

Free zone for air sea trans-shipment at Hambantota

By Sunimalee Dias

Sri Lanka’s second international airport at Mattala, Hambantota will make Requests for Proposals (RFPs) during the first quarter of next year in a bid to attract potential investors. It will open its airspace by the end of 2012.

The aim is to attract light and clean manufacturing companies to be established on a 450 hectare plot of land allocated for commercial and airport development, Airport and Aviation Services Ltd. Executive Director Johanne Jayaratne told the Business Times. He noted that the southern airport operations will be similar to the Dubai Free Zone with tax breaks and the possibility to attract business of that nature.

Further, business related to the aeronautical industry concerning maintenance and repair of aircraft will be encouraged, he said. The main idea is to establish a sea port with a direct link to the free port via direct link with the intention of putting forward an air sea transshipment hub, Mr. Jayaratne said.
This will ensure this location to be used as a hub for cargo carriers to the South Asian region itself, it was pointed out.

Currently the AASL is in discussion with charter and airline operators from the Indian sub continent, Commonwealth of Independent States (CIS) and Europe. In respect of establishing a 60%:40% ratio of cargo and passengers at the Hambantota International Airport, plans are underway to ensure this is achieved.

In this regard, the AASL will be in discussion with Sri Lankan freight forwarding companies as well as SriLankan Airlines and Mihin Air in a bid to attract the needed cargo operations to be commenced from the Hambantota airport.

Officials anticipate cargo to exceed passenger traffic at the airport noting that most perishables that need to be sent to the southern, central and north central parts of the country could be packed off from this south port.

Passenger traffic will amount to about 150-200 passengers on one charter flight per week for an estimated three charter operations initially when the airport opens in 2012, Mr. Jayaratne said.
Taking into account the demographics of budget carriers to the Middle East it was pointed out that it will be effective for these to originate from the southern airport as about 40% of the traffic are from the south and east of the country.

He noted that charter operators and budget carriers have less issues as they travel mostly from point to point whereas connectivity is a factor for legacy carriers. In this respect, the AASL is in discussion with Colombo bound carriers with the intention of increasing its frequencies to request them to fly into Hambantota for the extra frequency although it is not forced upon them, he said.

It was pointed out that with land transport becoming increasingly accessible it will take a minimum of two hours to travel from Colombo to the airport on the Southern Express Highway. In the meantime, work at the airport is expedited in a bid to ensure it is operational by end 2012 with 55% of the runway; 5% of the terminal building; 10% of the control tower completed.

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