Technical Assistance Consultant's Report Democratic Socialist

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Technical Assistance Consultant's Report Democratic Socialist Technical Assistance Consultant’s Report Project Number: 50184-001 February 2020 Democratic Socialist Republic of Sri Lanka: National Port Master Plan (Financed by the Japan Fund for Poverty Reduction) The Trincomalee Port Development Plan – Volume 3 (Part 1) Prepared by Maritime & Transport Business Solutions B.V. (MTBS) Rotterdam, The Netherlands For Sri Lanka Ports Authority This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. National Port Master Plan – Volume 3 Trincomalee Port Development Plan March 2019 Sri Lanka Ports Authority Maritime & Transport Business Solutions E, address Wijnhaven 3 P.O. BOX 601 3011 WG Rotterdam The Netherlands telephone +31 (0)10 286 59 40 e-mail [email protected] internet www.mtbs.nl document title Trincomalee Port Development Plan document status Final date March 2019 project name Sri Lanka National Port Master Plan MTBS reference 825 953 client Asian Development Bank executing agency Sri Lanka Ports Authority client reference Technical assistance for National Port Master Plan The Consultant’s reports, including a 500-word correspondence (500 word maximum), draft publications, maps, drawings, notes, specifications, statistics, work product in any form, and technical data sent to ADB as part of the Services remain ADB’s sole property. ADB may release them to the general public at its sole discretion. DISCLAIMER This document is intended only for use by the Client and the executing agency. It may contain confidential or privileged information. Maritime & Transport Business Solutions B.V. (MTBS) makes no representations or warranties about the accuracy or suitability of this document and its information for any purpose. Errors and omissions may occur. Therefore, MTBS disclaims any warranty, whether express or implied, as to any matter relating to this service and all information provided, including but not limited to the fitness for any particular purpose. In no event shall MTBS be liable for any indirect, special, incidental, or consequential damages arising out of any use of reliance of any information contained herein. Nor does MTBS assume any responsibility for failure or delay in updating or removing the information contained herein. confidential Trincomalee Port Development Plan | March 2019 Index Current Trincomalee Port Environment VI Future Demand and Development XI Recommendations & Short-Term Priority Projects XIII Preface 17 1 Trincomalee Port Overview 19 Introduction 19 The Importance of Trincomalee Region 20 Port of Trincomalee 23 Throughputs and Marine Traffic 27 Key Observations and Bottlenecks 29 2 Port Facilities 32 Introduction 32 Port Facilities 32 SLPA Facilities 35 Private Facilities 40 3 IT in the Port Environment 46 Introduction 46 IT in Trincomalee 46 Existing situation on IT and Communication systems 49 IT Gaps and short-term solutions 51 Future Way Forward 52 Recommendations and Short-Term Priority Projects 56 4 Social and Environmental Impact and Policy 58 Introduction 58 Legal Framework in general 58 General Environmental and Climate Characteristics 61 5 Connectivity and Hinterland 66 Introduction 66 Nautical access and navigation 66 Roads 69 Rail 71 6 Opportunities for Trincomalee 74 Introduction 74 Trincomalee Port Directions 74 Opportunities related to India, Bangladesh and Myanmar 75 Opportunities related to port trends 79 Recommendations and Short-term Priority Projects 80 7 Trincomalee Port Zoning 82 confidential Trincomalee Port Development Plan | March 2019 Introduction 82 Zoning Map Trincomalee 82 SLPA Lands 84 Recommendations and Short-term Priority Projects 90 8 Forecasts & Capacities 91 Introduction 91 Forecast approach 91 Cargo 92 Forecasts of Current Commodities Handled 93 Forecasts of New Commodities 98 9 Development Options 101 Introduction 101 Connectivity 102 Ashroff Jetty 103 Deep-water Oil Jetty 104 Ship Lay-up 106 Auxiliary functions 110 Indirect Supportive Functions 112 Cruise Berth & Marina 113 Industrial Development & Logistics 114 LNG Hub Terminal Floating Storage 115 Sampur Area Energy Development 117 Dock Yard 119 Container Terminal 120 Tambalagam Bay Development 121 10 Project Identification and Selection 123 Introduction 123 Selection Methodology 123 Short-term Priority Projects Description 125 Selection Results Short-Term Priority Projects 127 Methodology Financial and Economic Pre-Feasibility Analysis 128 Results Pre-Feasibility Projects 132 11 Ashroff Jetty Expansion 133 Background to the Project 133 Supporting Analyses 134 Pre-Feasibility Ashroff Jetty Expansion 145 Environmental and Social Impact Assessment 151 12 Deep-water Oil Jetty 155 Background to the Project 155 Supporting Analyses 155 Pre-Feasibility Deep-water Oil Jetty 159 Environmental and Social Impact Assessment 169 Alternative option: Conventional Buoy Mooring system (CBM) 171 TOR Trincomalee Port Development Plan 175 confidential Trincomalee Port Development Plan | March 2019 Development Plans SLPA Assessment 177 Assessment other Plans 191 Mitigation measures for land acquisition and resettlement 197 Sample LNG terminal 201 Implementation plan 203 Environmental Sustainability, Monitoring & Reporting 208 Guideline to measure the CO₂ emissions of a port 220 confidential Trincomalee Port Development Plan | March 2019 Page left blank intentionally confidential Trincomalee Port Development Plan | March 2019 Executive Summary confidential Trincomalee Port Development Plan | March 2019 Current Trincomalee Port Environment The Port of Trincomalee, located at the North East Coast of Sri Lanka in a unique natural deep-water bay, is protected by terraced highlands with an entrance guarded by two headlands. The sheltered bay provides excellent conditions for berthing and ship-to-ship cargo transfers. The port was originally used as a naval base with naval berths and a naval airstrip. Today, the port handled 3.2 million tons in 2016 with the main commodities being dry bulk cargoes (wheat, clinker, gypsum and coal), liquid bulk (refined products) and breakbulk or general cargo (project cargo, steel products). The port of Trincomalee is an important port for Sri Lanka, with several dedicated port terminals - the Tokyo Cement facility, the Lanka IOC oil facility and SLPA oil berth, the Prima Flour grain facility, and the TTA tea facility - and a common berth for general cargo and dry bulks - the Ashroff jetty. Additionally, several old oil storage tanks, originating from WO-II, are situated on government land near the port. In 2016, the port handled 3.2 million tons, consisting mainly of dry bulks, such as cement, coal, gypsum, and grains; and liquid bulks, such as oil products. Additionally, the port offers auxiliary services, such as areas for ship-to-ship operations, layup facilities, crew change services, and other services to ships anchored in the bay. The table below indicates the main facilities in the port and their respective functions. Current Trincomalee Port Facilities confidential Trincomalee Port Development Plan | March 2019 Current Trincomalee Port Facilities Tokyo Prima Naval Fishery Mud Cove Ashroff TTA Oil Berth Cement Flour Base Port Operator Private SLPA SLPA SLPA SLPA Private Navy Multi-User Containers Ro-Ro Dry Bulk Liquid Bulk General Cargo Passengers Ship Repair Navy Auxiliary Port Operational Activities The table below summarizes the development of cargo throughput at the port of Trincomalee, considering both the volumes at the SLPA facilities and at the private facilities. The following can be observed: • Dry bulk volumes account for the majority of throughput at the port. • In terms of absolute figures, clinker was the largest growth driver over the period from 2010 to 2016. The majority of the clinker volumes are destined for the Tokyo Cement facility in Trincomalee and Puttalam based Siam Cement. Additionally, some volumes are transhipped to smaller vessels hrough midstream operations, in order to serve Siam Cement facility in Galle. ‘000 Tons 2010 2011 2012 2013 2014 2015 2016 2017 Discharged Wheat in bulk 911 1,090 901 676 825 868 714 760 Clinker in bulk 738 985 1,369 1,244 1,383 1,419 1,593 1,678 Gypsum in bulk 12 43 107 80 114 86 112 166 Coal in bulk 106 105 89 99 113 93 103 90 Other (slag) - - - 10 14 - 22 - Liquid bulk (fuel) 191 113 179 166 173 182 281 417 Total Discharged 1,960 2,337 2,646 2,276 2,621 2,649 2,825 3,120 Loaded Wheat bran pallets 139 - - 140 127 162 153 122 Clinker - - - - - 217 536 619 Other 55 237 213 20 - - - 37 Total Loaded 194 237 213 159 127 379 689 778 Cargo Handled 2,154 2,574 2,859 2,435 2,748 3,027 3,514 3,897 confidential Trincomalee Port Development Plan | March 2019 Supporting Processes & Activities IT The capabilities of SLPA’s current IT systems in Trincomalee are very limited. Some Oracle Financial system modules are implemented in the Port of Trincomalee, as an extension of the systems used by the SLPA Head Office in Colombo. However, due to poor internet connectivity, the system needs to be reset frequently to carry out data transactions. Additionally, the Trincomalee based SLPA facilities lack essential IT systems, such as (i) a Harbour Master Information Management System that is linked to a Vessel Traffic Management System; (ii) online cargo payment and clearance systems for clients; and (iii) port operations management systems that tracks and manages berth availability, scheduling, warehouse availability, and tug availability. Ship Repair Some ship repair services are provided at the Mud Cove facility, which features some workshops and a privately operated floating crane to lift vessels onto the quay. The facility mainly caters to SLPA vessels, but several private vessels are also moored alongside the quay waiting for repairs. Connectivity The access channel to Trincomalee port passes through the natural deep-water bay; as such, the channel has a minimum depth of CD -22.0m and a width of 1,554m. The depth of the navigable waters within the harbour vary between CD -11.0m and CD -30.0 m.
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