Trincomalee Oil Tank Farm

In 2015, India and Sri Lanka had agreed to revive the World War II era oil tank farm situated in Trincomalee in the east coast. The negotiation had been going on for quite some time since 2003. As per the 2003 agreement signed by the neighbours, India was to upgrade and commission the 99 tanks in the farm – each with a capacity of 12,250 kilolitres – on a 35-year lease. However, the project did not take off fully as planned, as the two sides could not come to an understanding on operational aspects. The project which was lying dormant due to the civil war, trust issues and problems with the PSU handling the issue, is finally to take off.

This oil tank farm located in the midst of the jungle has a huge history behind it. Trincomalee harbour being the second deepest natural harbour in the world, the British who were in control of the island decided make this as their primary logistics station in the east after World War I. They started the oil storage project in the 1924 and completed in late 1930’s. The farm had 101 storage tanks built with 1 inch thick steel sheets and the tanks near the harbour are enclosed by 1 feet thick concrete rings. After that it was abandoned by the British in 1948 when Sri Lanka gained independence. It is a also a lesser known but an important logistic station during the World War II. Out of the 101 tanks one of the tanks was destroyed when a Royal Ceylon Air Force plane crashed in early 1960’s. The most famous is the destroyed tank number 91 lying in the far edge of the forest. Only the charred, twisted and melted metal remains of this tank and a small notice near the tank gives details of how the tank was destroyed in a kamikaze attack during the Japanese air raid on Trincomalee at dawn on April 9, 1942. In 2002, the development of this tank farm was revived by an Indian company Indian Oil Corporation (IOC).

At present Indian Oil Corporation subsidiary Lanka IOC, engaged in bunkering operations, runs 15 out of the 99 storage tanks in the lower oil tank farm in Trincomalee. The proposed joint venture pertains to the remaining 84 tanks in the upper farm, but Sri Lanka would retain 10 of those for use by the Ceylon Petroleum Corporation. Most of the tanks built by the British during the World War Years are in good condition.

The location also has a great strategic till date. It is a home to 3.7 lakh Muslim, Tamil and Sinhala people and Trincomalee, in Sri Lanka’s post-war years, has emerged a favoured destination for surfers from around the world, gradually transforming with plush resorts and restaurants dotting its coast. Trincomalee remains in spotlight as a potential transit point for international trade routes, particularly drawing India which has known strategic interests there.


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