Sri Lanka Railway: Hambantota Port & Steel Corp. Iron Ore

Introduction

In July 2024, the first shipment of 500 metric tons of iron ore arrived at the port of Hambantota, Sri Lanka, marking a significant step in the island nation’s railway infrastructure upgrade. This initial delivery is part of a larger project to enhance the railway’s capacity and efficiency, with iron ore destined for the Steel Corporation, a state-owned enterprise.

Project Overview

The project, initiated in 2023, involves the modernization of the existing railway lines and the expansion of the network. The primary objective is to improve the transportation of raw materials, particularly iron ore, to the Steel Corporation’s manufacturing facilities. The total budget allocated for this phase of the project is LKR 1.5 billion.

Hambantota Port Operations

The port of Hambantota plays a crucial role in this development. The recent shipment was unloaded and temporarily stored at the port before being transported via railway to the Steel Corporation. The port authorities have invested in new handling equipment and storage facilities to accommodate the increased volume of goods. The railway line connecting the port to the main network has undergone extensive repairs and upgrades to handle the heavier loads.

Iron Ore Logistics

The iron ore, sourced from overseas, will be used in the production of steel products. The initial shipment of 500 metric tons is a test run to assess the efficiency of the new railway infrastructure. Subsequent shipments are expected to increase in volume, with an estimated 5,000 metric tons of iron ore scheduled to be transported monthly. The Steel Corporation anticipates that the improved logistics will significantly reduce transportation costs and improve production efficiency. This Sri Lanka railway development project is crucial for the nation’s industrial growth.

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