[B][SIZE=4]Hambantota Port receives only 24 vessels during 2011-12[/SIZE][/

[Neuro]

Magampura Mahinda Rajapaksa Port (MMRP) in Hambantota has received only 24 vessels in total during the years 2011 and 2012, the latest Committee on Public Enterprises (COPE) Annual Report disclosed.

The first phase of MMRP, built using Chinese funding, was opened for operations in November 2010. The port which was touted as a landmark project that could challenge ports in India and Singapore had only received six ships in 2011 and 18 ships in 2012.

The Sri Lanka Ports Authority (SLPA) last year announced that all vessels carrying motor vehicles, except heavy vehicles, would be directed to MMRP in an apparent bid to increase the ship traffic at MMRP.

However, the reasons cited were the berthing delays and space constraints at Colombo Port.

The total estimated cost of the first phase of MMRP according to the SLPA was US $ 361 million and out of which 85 percent was funded by Exim Bank of China.

However, in August 2011, the SLPA said it would need additional funding of US $ 148 million to cover equipment including cranes, cost escalations in building the port and digging the basin and entrance channel.

According to the COPE report, the annual interest payable by the SLPA on MMRP amounts to: Rs.2,208 million (2012), Rs.2,479 million (2013), Rs.2,233 million (2014), Rs.1,987 million (2015) and Rs.1,742 million (2016).

To increase the income of MMRP, the SLPA said it had invited interested both local and foreign parties to set up business within the MMRP premises in two stages.

Under the first stage, the Cabinet has approved seven investment proposals and business venture agreements with two of the investors have already been signed.

The SLPA has informed the COPE that nine investors had been considered under stage two, who would invest US $ 1,105 million.

Hambantota Port receives only 24 vessels during 2011-12 - Sri Lanka

 

[IndoCarib]

Eventually Chinese will take over the port and operate it themselves. Just like they did with Gwadar port.

 

[harpoon]

Eventually Chinese will take over the port and operate it themselves. Just like they did with Gwadar port.

So basically SL built China a naval base.

 

[IndoCarib]

So basically SL built China a naval base.

Gwadar is not a naval base.

The Chinese have a astute business sense. They built this port with the money they lent to SL. They get interest on that loan. They used chinese construction companies to build the port. The company gets business and makes profit. Now they will run the port for a profit. Win win situation for China. This is what they world over.

 

[Capt.Popeye]

Eventually Chinese will take over the port and operate it themselves. Just like they did with Gwadar port.

OK. But for what purpose? Remember a port exists for either import or export of goods. As in the case of Indian ports. Or sa transhipment port which is the case with Colombo. Very little export and not too much import, because SL's economy is still quite small. And not even a net-exporting one.

Now Colombo has saturated in its business, especially in its transhipment business. Becuse there is no space left to expand the wharfage or storage/handling yards. So as the report says; Hambantota can only get the traffic diverted from Colombo. The traditional importers and exporters in Colombo will be reluctant to move to Hambantota because of bottlenecks and added costs.
So the only business that can be shifted to Hambantota will be container transhipment buiness. But the container transhipment business will increasingly bypass Sri Lanka (incl. Colombo and Hambantota) becuse the present generation of Container Mega-Ships can sail directly from FE/SE Asia to Europe with no port calls in between. The transhipment business will only reduce in the future. Not too bright a future.

So basically SL built China a naval base.

Hardly. It is a commercial port just as Gwadar is. Naval Bases cannot be set up so easily.

 

[harpoon]

Gwadar is not a naval base.

The Chinese have a astute business sense. They built this port with the money they lent to SL. They get interest on that loan. They used chinese construction companies to build the port. The company gets business and makes profit. Now they will run the port for a profit. Win win situation for China. This is what they world over.

How the Chinese plans to run this port at a profit when its attracting less ships.

 

[IndoCarib]

OK. But for what purpose? Remember a port exists for either import or export of goods. As in the case of Indian ports. Or sa transhipment port which is the case with Colombo. Very little export and not too much import, because SL's economy is still quite small. And not even a net-exporting one.

Now Colombo has saturated in its business, especially in its transhipment business. Becuse there is no space left to expand the wharfage or storage/handling yards. So as the report says; Hambantota can only get the traffic diverted from Colombo. The traditional importers and exporters in Colombo will be reluctant to move to Hambantota because of bottlenecks and added costs.
So the only business that can be shifted to Hambantota will be container transhipment buiness. But the container transhipment business will increasingly bypass Sri Lanka (incl. Colombo and Hambantota) becuse the present generation of Container Mega-Ships can sail directly from FE/SE Asia to Europe with no port calls in between. The transhipment business will only reduce in the future. Not too bright a future.



Hardly. It is a commercial port just as Gwadar is. Naval Bases cannot be set up so easily.

That may be true. The port may not be a gold mine for the Chinese yet. For Rajapaksa this was more of prestige project, Hambantota being his constituency.

 

[Capt.Popeye]

That may be true. The port may not be a gold mine for the Chinese yet. For Rajapaksa this was more of prestige project, Hambantota being his constituency.

It is simply that. Like Laloo making a 'rail-factory' in his constituency. And most peope are none the wiser for it.

 

[IndoCarib]

How the Chinese plans to run this port at a profit when its attracting less ships.

well for starters the port is just one year old. Even Gwadar port was written off as dud. May take some time to turn around, if at all

It is simply that. Like Laloo making a 'rail-factory' in his constituency. And most peope are none the wiser for it.

I guess so

 

[Capt.Popeye]

well for starters the port is just one year old. Even Gwadar port was written off as dud. May take some time to turn around, if at all



I guess so

There is a great difference between Hambantota and Gwadar in terms of POTENTIAL business. Gwadar can (possibly) move a lot of cargo if the rail/road link to the North to China is built. In other words, it can move Chinese Cargo. IE cargo for/from/to China. But that is still future tense.
Hambantota will ship whose cargo? SL has little now or into the future. China does not need it to ship its own cargo. Then where will the growth come from?

 

[IndoCarib]

There is a great difference between Hambantota and Gwadar in terms of POTENTIAL business. Gwadar can (possibly) move a lot of cargo if the rail/road link to the North to China is built. In other words, it can move Chinese Cargo. IE cargo for/from/to China. But that is still future tense.
Hambantota will ship whose cargo? SL has little now or into the future. China does not need it to ship its own cargo. Then where will the growth come from?

Leaving apart the economics of it, China is known to use its infra projects as a bait to get a foot hold into a country. May be that is what they want. The African continent is replete with similar examples.

 

[harpoon]

well for starters the port is just one year old. Even Gwadar port was written off as dud. May take some time to turn around, if at all

Forgive my ignorance......but is Gwadar turning around.

 

[Capt.Popeye]

Forgive my ignorance......but is Gwadar turning around.

No. Not yet
Remember a port is meaningful only because of its 'hinterland'. IE the area that feeds to or gets fed from the Port, whose cargo that will be handled. Or in case of a transhipment port, the cargo that will be transhipped. Gwadar has neither in any worthwhile quantity. There is nothing for transhipment. While its present hinterland is handled already by Karachi and Port Qasim.

If and when the road/rail links to the North get done, then Gwadar will get going. Otherwise only cargo can be diverted from Karachi/Port Qasim. But the frequent eruptions in Balochistan are not any help towards that.

 

[Gibbs]

Magampura port is basically marketed as a bunkering hub not a transshipment port and expected to be fully operational only by 2020.. Said that at the moment it has tuned out to be a white elephant for the Rajapaksa regime.. Basically they expedited the project at the behest of the regime without a long term plan.. First dredging of the deep water faced problems and second many of the heavy industries are yet to be shifted or started to operate from Hambantota..

Btw this project has been in the cards even before independence first proposed by the British but have been shelved by consecutive govts due to the lobbying by other hubs like Singapore etc.. It's not that the Chinese suddenly appeared to build themselves a naval base..

Hambantota is a mere 40 KM away from the main shipping lanes crossing the Indian ocean.. IT will be a bunkering hub once it starts fully operating

 

[Skyline]

Hambantota port project is not a fully completed project yet. It will take 5-6 more years to become mature!

There won't be any Chinese Naval base in Hambantota. Hambantota isn't a develop city in SL, it will take 10-15 years to become more commercial city there.