Lanka Bunker Services (Pvt) Ltd has signed an agreement with Sri Lanka’s Board of Investment (BOI) to provide a new range of bunkering services at the Colombo Port. The company is a joint venture between Sri Lanka Shipping Company Limited and US-based ChemOil.

A BOI statement said ChemOil will lend the project significant advantages through its large international market share and technical expertise.

The project aims to provide ships visiting the Colombo Port with a type of bunker oil previously unavailable in Sri Lanka. Total investment in the venture is projected at Rs. 500m. The project will employ 22, who will be trained at ChemOil’s office in Singapore. The staff will consist of traders, engineers and operations staff.

The facility will cater initially to Sri Lanka’s existing sea port traffic. However, industrial areas in South India could also benefit from the services.

M. Reza, director of Lanka Bunker Services, said Sri Lanka’s central location and the BOI’s assistance were the key factors in the implementation of this project. He said that for Sri Lanka to become a transshipment hub, quality ancillary services should be available to facilitate international trade.