Colombo Port to Acquire Two Tugboats as New Terminal Construction Advances

The Cabinet of Ministers has approved a revised strategy for procuring towing vessels to support operations at the Colombo Port in light of the progress being made on the construction of a new terminal. It is anticipated that the new terminal will be completed sometime between the middle and end of this year. Consequently, the decision has been made to acquire two tugboats on a hire basis for the Sri Lanka Ports Authority (SLPA) to facilitate operations at the Colombo port. This decision comes after two previous procurement attempts could not be finalized.

The proposal, put forth by Minister for Transport, Highways, Ports and Civil Aviation Bimal Rathnayake, received approval from the Cabinet of Ministers. Initially, in October 2022, the Cabinet had approved the solicitation of international tenders for the acquisition of an 80-tonne bollard pull tractor for the SLPA. Despite receiving four bids, negotiations with the recommended supplier to secure the vessel on a loan basis were unsuccessful due to an increase in procurement costs following the introduction of value-added tax (VAT) on January 1, 2024.

Following the challenges faced with the initial procurement process, the decision was made to reassess the need for vessels based on the construction schedule of the new terminal. As a result, the Cabinet has approved the continuation of the ongoing leasing process of two 80-ton bollard pull tugs to fulfill immediate operational requirements. Additionally, a new procurement process will be initiated for the acquisition of two 70-ton bollard pull tugs with dual azimuth stern drive capabilities, necessary for operating the new terminal. This latter process is scheduled to commence in mid-2025.

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