Ports Authority to obtain tug vessels on rental basis

The Sri Lanka Ports Authority (SLPA) has received approval to complete the procurement of two 80-ton bollard pull tug vessels on a rental basis for Colombo Port operations, while also initiating a new procurement process for two 70-ton bollard pull twin azimuth stern drive harbour tugs required for a new terminal set to open in mid-2025.
The decision comes after SLPA halted an earlier procurement of the 80-ton tug vessels due to cost concerns stemming from the implementation of the Value Added Tax (VAT) Act on 1 January 2024, which increased overall procurement costs.

International competitive bids were invited in 2022 to procure a single 80-ton bollard pull tug vessel, with four bids received. The procurement committee recommended awarding the contract to the lowest responsive bidder. However, negotiations with the supplier to secure the vessel on a loan basis failed, leading to the discontinuation of the process.

 SLPA then invited bids to acquire two such vessels on a rental basis and received three proposals, but negotiations with the lowest responsive bidder to secure a price reduction were unsuccessful.