The Sri Lanka Ports Authority plans to upgrade an aging bunker fuel storage facility it is taking over from a private firm, senior officials said.

The SLPA is getting ready to invite expressions of interest from companies by year’s end to replace the old pipelines and modernise the facility.

It aims to have a plan in place to replace the old pipelines by year’s end.

The pipelines leading from the storage tanks to the port are old and in urgent need of repair.

The SLPA is to take over the facility on September 10 from Lanka Marine Services (LMS), the biggest bunker supplier in Colombo port on a Supreme Court order.

The judgement, delivered in a case that challenged the privatisation of LMS and its acquisition by John Keells Holdings, called for the facility to be used by all licensed bunker suppliers to ensure more competition.

SLPA officials said it has already drawn up a set of interim tariffs for the facility’s use by competing suppliers.

The SLPA has held talks with all eight holders of valid bunker licenses who have formed an association of bunker suppliers to decide how to use the tanks and pipelines.

The SLPA’s approach will be to have cost-based tariff to encourage the facility’s use by suppliers and ensure greater competition in the supply of ship fuels in Colombo port. - LBO