The first phase of the port was completed in November 2010, after the approach channel to the port underwent extensive dredging, and the completion of the construction of four berths. China Harbour Engineering was the main contractor in the USD360 million project.
Hambantota city, is one of the poorest parts of Sri Lanka, but the Government has plans to make the port a trade hub for India and Asia-Europe as it is looking for investments worth USD1 billion for a free trade zone. Already 15 potential investors – out of 27 proposals – from countries including India, Pakistan, Sweden and Singapore are currently being assessed. They offer to establish factories ranging from vehicle assembly to processing plants for cement and refining sugar.
If the finance for the second phase will come through it is to be expected that China Harbour Engineering, a division of China Communications Construction will take the same role for the second phase. Currently, Colombo Engineering Enterprises is constructing a USD25m floating dock in the port, which should be completed by early next year. It will be capable of handling 12,000 dwt vessels.