Dr Sarath Obeysekera

1. Trincomalee = High-Potential but Underutilized Asset as it is 

One of the best natural harbours in the world Close to major East–West shipping route with Large available land + deep water + shelter hence This combination is extremely rare globally.

2. Most Viable Immediate Investment: Ship Repair Yard

The report is very clear:

Strong regional demand

50 ships/year initially

Recent agreement between Colombo Dockyard and Indian Dredging Corporation  to service their fleet is stepping stone by using Trinco for the purpose 

USD 20 million revenue in year 1

Positive NPV (up to USD 135 million)

Conclusion:

This is the anchor project—everything else should be built around it.

3. Ship Layup = Opportunistic, NOT Core Business

• Works only during global downturns and recent anc new opportunities risen due to war between US and Iran  

• Demand is now predictable 

• Financial viability now positive in realistic scenarios

Strategic interpretation:

• SLPA should initiate projects to  build dedicated infrastructure first by deploying more buoys and a dedicated berth 

4. Offshore Oil & Gas Link is Critical

Strong insight from report:

• Indian Ocean oil & gas activity (India, Middle East)

• Offshore vessels need:

• Repair

• Maintenance

• Hot and cold Layup 

This is your real market, not just shipping.

5. Supporting Industries Identified

The report smartly includes:

• Yacht manufacturing (Sampoor)

• Small craft repair (Mud Cove)

• LNG / FSRU potential

• Marina & cruise tourism (long-term)

This creates a maritime industrial ecosystem

Strategic Gaps 

1. No Strong PPP / Investment Model

The report mentions PPP but does not structure it clearly.

It is proposed  to establish a 

• JV with Indian / Japanese / Middle East players

• Revenue-sharing + land lease model

• BOOT (Build-Own-Operate-Transfer)

• Position Trincomalee as:

• India–Sri Lanka joint maritime hub

• Alternative to:

• Singapore

• Dubai

• Indian east coast congestion

Is a Reality:

Sri Lanka must:

• Offer discount tariffs

• Build strategic alliances with shipping lines

• Partner with offshore operators

4. Institutional Weakness are addressed 

But not:

Bureaucracy

delays in approval 

corruption risk

This is a critical bottleneck

Core Pillars:

1. Ship Repair Mega Yard (Anchor Project)

• Large dry dock

• Offshore vessel specialization

• Target: Indian + Middle East market

2. Offshore Support Base

• For oil & gas vessels

• Collaboration with Indian oil

exploration sector

3. Strategic Layup Zone (Flexible Model)

• No heavy upfront investment

• Activated during downturn cycles

4. Energy Hub

• LNG (FSRU)

• Oil storage (tie with IOC presence)

5. Industrial & Logistics Zone

• Marine engineering

• Fabrication yards

• Equipment supply chain

Policy Recommendations (High Impact)

1. Create Trincomalee Special Maritime Zone”

• Tax holidays

• Duty-free imports

• Fast-track approvals

2. Joint Development with India

Very important politically:

• Indian oil & gas companies

• Ship repair collaboration

Regards

Dr Sarath Obeysekera