The Hambantota Port in southern Sri Lanka signed its first Terminal Service Agreement (TSA) with K-Line PTE Limited (KLPL), one of the world's largest maritime transport companies, local media reported on Sunday.

The agreement was signed between Hambantota International Port Group (HIPG) and K-Line PTE Limited, a member of Kawasaki Kisen Kaisha Ltd. of Japan, the global giant in transportation.

The TSA was a result of K Line's decision to partner HIPG to improve their throughput via the Hambantota port, as the international standard service delivery levels were consistently achieved and maintained by HIPG, and met with K Line's own levels.

The signing of the TSA is not only a first for HIPG but also a milestone for the Sri Lankan industry as this is the first such agreement to be signed with a maritime tranport operator in the country's history, local media reported.

China Merchants Port Holdings (CM Port) and state-owned Sri Lanka Ports Authority, in last July signed an agreement to manage and run the operations of the Hambantota Port.

Following the signing, the HIPG was set up, which is a joint venture company formed by the Sri Lankan government and CM Port.