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Sri Lanka: Cabinet Paper Highlighted Serious Issues in Chinese Involvement

(December 14, 2016, Colombo, Sri Lanka Guardian) A cabinet paper highlighting several serious issues that would surface by handing over Hambanthota Harbour ( Magampura Mahinda Rajapaksa Port) to a Chinese had been presented to the cabinet by then acting Minister of Ports and Shipping Affairs Nishantha Muthuhettigamage. It was presented to cabinet on 3rd November 2016.

The cabinet paper warns that the Chinese investor would get the majority control of the company and the company would get complete control of Hambantota Harbour.

It was also stated that the new company would get all the incomes that Ports Authority had received by supplying various services and the Ports Authority would get only the lighthouse maintenance allowance.

The most serious issue that would surface by handing over Hambanthota Habour to a foreign company is mentioned in No. 9 of the cabinet paper and it states, “Harbours should be considered as an important part of national security and considering past experiences the complete control of a harbour should be with the government. As such, handing over Hambanthota Harbour that is situated strategically close to main sea routes would be a threat to national security of the country”.

Mr. Nishantha Muthuhettigamage has also made an entry to the cabinet paper stating that he presents the cabinet paper as the acting Minister of Ports and Shipping Affairs, he discussed with the Minister of Ports and Shipping Affairs Arjuna Ranatunga and he had given his approval to present the cabinet paper.

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http://www.slguardian.org/2016/12/s...ighted-serious-issues-in-chinese-involvement/
 
The bold part is your delusion and exaggeration trying to project some thing which you do not have. Chinese non intervention policy is a myth, try telling these words to your own people who have no access to outer world interms of news and believe what cpc says.

Give me one example in which China is involved in regime building or putting favorites in high positions in foreign countries?

Or, give me an example in which China forced a regime change through covert or overt military-secret service intervention.

Yet, major corporation involving in certain favoritism is not a new thing; everybody does that. I am not saying the CCCC has been engaged in practices outside the book, but, even major construction companies from the US were accused of and indicted with fraudulent business practice.

The overall success of China's investment in construction and logistics cannot be denied or reduced by allegations here and there. China is the largest trading nation and the largest investor in the world. It is involved in thousands of such projects at any given time.

It is not an easy task and there will certainly be problems from lack of experience. After all, China is a major developing country and its experience may be younger than established Western companies.
 
There is an entire file of Chinese mischiefs in Africa and other countries.

You are meddling in India's fight against terror by vetoing the Indian moves against Masood Azhar.

You will suffer the consequences as a result in terms of trade with India.
http://www.aljazeera.com/indepth/opinion/2011/10/201110192445805195.html

Give me one example in which China is involved in regime building or putting favorites in high positions in foreign countries?

Or, give me an example in which China forced a regime change through covert or overt military-secret service intervention.

Yet, major corporation involving in certain favoritism is not a new thing; everybody does that. I am not saying the CCCC has been engaged in practices outside the book, but, even major construction companies from the US were accused of and indicted with fraudulent business practice.

The overall success of China's investment in construction and logistics cannot be denied or reduced by allegations here and there. China is the largest trading nation and the largest investor in the world. It is involved in thousands of such projects at any given time.

It is not an easy task and there will certainly be problems from lack of experience. After all, China is a major developing country and its experience may be younger than established Western companies.
 
There is an entire file of Chinese mischiefs in Africa and other countries.

You are meddling in India's fight against terror by vetoing the Indian moves against Masood Azhar.

You will suffer the consequences as a result in terms of trade with India.
http://www.aljazeera.com/indepth/opinion/2011/10/201110192445805195.html

None of them would be considered interventionism. It is geopolitical decision making which may impact other countries' interests.

Anyways, to sell or not to sell the port to Chinese company is up to the government of SL.

If they see a better option, such as an Indian company paying for the loss and running the business to turn it into profit, they will likely go for it. In the end, everybody pursues profit maximization. So far, however, India does not shine as a good logistics management country. Neither is it known as a good infrastructure builder.

What India can offer?

It is either SL will keep the port, keep making loss and laying people off, or find someone with a shiny track record of port management and turning loss into profit. China, so far, is the only country that fits the bill. India is not.

there is a truckload's full of news and articles on Indian men's mischiefs in air flights, other countries and India herself.

Exactly. Some Indians think only they know how to effectively use internet search engines.
 
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None of them would be considered interventionism. It is geopolitical decision making which may impact other countries' interests.

Anyways, to sell or not to sell the port to Chinese company is up to the government of SL.

If they see a better option, such as an Indian company paying for the loss and running the business to turn it into profit, they will likely go for it. In the end, everybody pursues profit maximization. So far, however, India does not shine as a good logistics management country. Neither is it known as a good infrastructure builder.

What India can offer?

It is either SL will keep the port, keep making loss and laying people off, or find someone with a shiny track record of port management and turning loss into profit. China, so far, is the only country that fits the bill. India is not.


Agree, whether to choose a foreign partner or against it, it's entirely upto Lankan internal politics to come to a final decision.

Once Sri Lanka decides to partner with foreign multi-national(s), then next question, who? China can offer irreplaceable & overwhelming value:
  1. Design, technology, equipment. ZPMC alone dominates 80% of global equipment market, builds the first fully automated port in Qingdao, and implementing Sustainable Integrated Next Generation Advanced (SINGA) Port concept in Busan (South Korea), Dubai, Singapore.
  2. Engineering & construction. China Harbour Engineering Corp (CHEC), China Communications Construction Company Limited (CCCC; Ranked 187th in 2014 Fortune 500), all have impeccable credentials in building the world's best, largest mega-infratructures.
  3. Port Management & logistics. Ports are preferably be managed by multi-nationals with global presence. As per Lloyd's Top100 world's most powerful companies, 5 out of top 10 are Chinese, China Merchants is one of them.
  4. Trade clout. China's industrial volume (e.g. steel, more than rest-of-the-world combined) & trade volume far exceed any nation, 7 out of top 10 ports are on Chinese coasts.
  5. Funding.

cargo-jpg.213213
 
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it will help you better run and develop the port.

No it's not. The port is sold to China just be take political revenge from former President of Sri Lanka Mahinda Rajapaksa.

Such a strategic port... How could it be loss-making? Lack of proper promotions?

First off, the port is not completely built. Only the first phase of the harboour development project is completed. Moreover, the harbour and the nearby airport is built to serve the proposed industrial complex that is now earmarked to be sold to China for a merger value.

the answer is simple, the economic weight of Sri Lanka is beyond the capacity of this port. Meanwhile Sri Lanka doesnt have what it takes to become regional hub like what Singapore has and offer. Not to speak the lack of economic cooperation between Countries in South Asia unlike what ASEAN had

Sri Lanka has everything to become a regional hub and can even surpass Singapore. That's why Singapore is afraid of growing Sri Lanka.

Sri Lanka is too nearby off India coast. Mumbay, Chennai ports attract most ships and goods to their service area. If the Sri Lanka port can't build up a comprehensive industry, service, tour and financial center / free zone, it's very hard for them to compete with India strength.

Hambantota port is not designed to compete with any Indian port or the nearby Colombo port. It is built to serve the ships using the East-West shipping lane which lies no more than 100 km off Hambantota and to serve the proposed Industrial complex nearby.

And what happened when these port failed? Did the lenders try to lease these ports for 199 years?

Hambantota port is a classic example of why country needs to be wary of this so called Chinese investment (read economic colonization).

As if the Chinese Exim bank did not see this coming.

The port doesn't fail. Unless why would China buy a failed port purposefully? No one lends money to a country if they see the country couldn't pay it off successfully. Sri Lanka tries to sell the port to China just to take political revenge from our former President.
 
Sri Lanka is too nearby off India coast. Mumbay, Chennai ports attract most ships and goods to their service area. If the Sri Lanka port can't build up a comprehensive industry, service, tour and financial center / free zone, it's very hard for them to compete with India strength.
They need to coexist not compete. That's the same obsession Chinese have with us or Pakistanis with Indians.

Hambantota is very close to Columbo port so it's only use will be to compensate the work load of that. Unless the trade increases significantly that is bound to fail.
 
Once Sri Lanka decides to partner with foreign multi-national(s), China Inc can offer irreplaceable & overwhelming value:
  1. Design, port technology and equipment. ZPMC alone dominates 80% of global equipment market, builds the first fully automated port in Qingdao, and implementing Sustainable Integrated Next Generation Advanced (SINGA) Port concept in Busan (South Korea), Dubai, Singapore.
  2. Engineering & construction. China Harbour Engineering Corp (CHEC), China Communications Construction Company Limited (CCCC; Ranked 187th in 2014 Fortune 500), all have impeccable credentials in building the world's best, largest mega-infratructures.
  3. Port Management & logistics. Ports are preferably be managed by multi-nationals with global presence. As per Lloyd's Top100 world's most powerful companies, 5 out of top 10 are Chinese, China Merchants is one of them.
  4. Trade clout. China's industrial volume (e.g. steel, more than rest-of-the-world combined) & trade volume far exceed any nation, 7 out of top 10 ports are on Chinese coasts.
  5. Funding.

This perfectly explains why Sri Lanka would be choosing China-led consortium; its not only construction ability, but also management and financial resources.

Indian emotionalism and obsession is understandable but they need to understand that foreign policy is a multileveled game; much more complicated than how Trump reduces it into fast Tweeting skills.
 
This is a new kind of colonisation. Congrats China. Srisena govt warned Sri Lanka is under huge debts, thanks to Mahinda Rajapakse's wonderland dream. Expanding Colombo port itself will do the job. Until unless SL does not enter into a free motor trade agreement with India which SL members here in PDF are against, their port will lie in waste. Indian ports will get stuck in traffic in near future, and Hambantota can really cater to the SI market through a free market and transport economy.

Indians blame China for this port failure, that's ridiculous, China never forced anyone to borrow our loans and it's those governments decision to borrow foreign money or not. When you fail a business and you blame the one who lends you money, can anything be more stupid than that?

We are not blaming you guys. Its the government that is responsible. But can the company be held responsible if it had provided an wrong feasibility study?
 
Tamil people offered India the world's largest natural port Trincomalee (suitable for large merchant and warships) on a 100 year lease in exchange for recognizing the Tamil Eelam as independent country.

Because of India's hatred for Tamils everywhere (including within India), India rebuffed it and signed a secret agreement with Sinhalese agreeing not to allow US ships in Trincomalee in 1987 in exchange for Indian army coming to Eelam and destroying Tamil army which was winning against Sinhala army. Then as soon as Indian army left Sri Lanka unable to defeat the Tamil army, Sri Lanka abrogated the agreement.
 
Tamil people offered India the world's largest natural port Trincomalee (suitable for large merchant and warships) on a 100 year lease in exchange for recognizing the Tamil Eelam as independent country.

Because of India's hatred for Tamils everywhere (including within India), India rebuffed it and signed a secret agreement with Sinhalese agreeing not to allow US ships in Trincomalee in 1987 in exchange for Indian army coming to Eelam and destroying Tamil army which was winning against Sinhala army. Then as soon as Indian army left Sri Lanka unable to defeat the Tamil army, Sri Lanka abrogated the agreement.

Lol.. what kind of mind numbing stupidity was that, Tamil people offered India Trincomalee ?? Lol, When did Tamil people own Trincomalee ?? Trincomalee is a port of the Sovereign nation of Sri Lanka, Only the legitimate govt of Sri Lanka has and always had the ownership of Trincomalee, Even through the bloody terrorists wrecked havoc elsewhere they could never come close to Trinco

Get your head out of your arse and smell the coffee, People elsewhere are not a bunch of clowns like in Tamil Nadu that worship B grade movie actors to believe utter BS

Back to the subject matter, It's hilarious the amount of misinformation spewed here, Especially by the usual suspects.. PDF Indians clutching at straws once again

First it's not been sold, Will be given on a 99 year lease 80% of it's shares

Second contrary to the glee of some posters here, Hambantota is not the main port in the region but Colombo is, Colombo will be one of the top 15 ports in the world one the south terminal comes in to fully operation by next year atm it's the top 30th in the world as @Shotgunner51 highlighted

And nothing of sort will happen as wished by the Rajapaksa regime slaves in SL may wish, Despite their wishes of sabotage may affect the operations of the port, But them again they wont care as long as their god kings (The Sinhala extremist equivalent of Prabhakaran) agenda is served

The Hambantota port is'nt a failure but a it turned out to be a white elephant project of the former regime, In order of it's haste to build it to satisfy the ego of their tin pot dictator Rajapaksa, Once those short comings are cleared and the bunkering facility comes in to full operation, Hambantota will be a hub port in between Dubai and Singapore as far as Indian ocean maritime trade is concerned, No Indian port now in operation or the and the ones thats planned in the future would be able to compete with

Finally Chinese do trade and investments, They dont do hand out's, So it's the prerogative of the host nations to use those investments wisely, So it's not the fault of the Chinese the incompetency and corruption thats ingrained in third world nations run by third world regimes like Sri Lanka

Chinese have the money to invest world over including their only viable rival the US and they will do it in order to solidify thier influence, Nothing wrong thats what world powers do, While India needs to STFU till they are in a position to counter the Chinese both in trade and political influence, At the moment India is at best a regional subordinate power to counter China used by the West, So i really dont understand the hue and cry over a decision made by Sri Lanka a sovereign nation on their commercial interests
 
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First it's not been sold, Will be given on a 99 year lease 80% of it's shares

Exactly. Like a property owner will lease space to a fast food chain, it's absolutely normal for a port owner (Sri Lanka) to lease space to a multinational logistics operator (China Merchants).

Hambantota is not the main port in the region but Colombo is, Colombo will be one of the top 15 ports in the world one the south terminal comes in to fully operation by next year atm it's the top 30th in the world as @Shotgunner51 highlighted


Yes bro we have chat about this since last year, long time no see buddy! Columbo ranked #33 in 2013 with 4.31 million TEU, ascended three spots to #30 in 2014 reaching 4.91 million TEU, the trend is impressively good.

Colombo South Container Terminal CSCT

The 2.4 million TEU's capacity Colombo South Container Terminal, the first terminal under new expansion in the Port of Colombo is built by Colombo International Container Terminals Ltd., (CICT), a joint venture Company between China Merchants Holdings (International) Co., Ltd. (CMHI) and the Sri Lanka Ports Authority (SLPA). It is developing the new port under a 35 year build, operate, and transfer agreement with the SLPA. Commenced construction in December 2011, the first pace was ceremonially opened for traffic on 8 August 2013 making Colombo Port complex one of the biggest in the World. Total length of new Breakwater is 6830m. Berth Depth is 18m.​

colombo-port-south-container-terminal-presented-jpg.214187

Columbo is already second to none in the region, CSCT will further solidify it's #1 position. Given SL's perfect location in maritime route (see post #47, map of OBOR), the nation can definitely expand with another port - Hambantota. Now that lease deal is done, let's see how logistics operator - China Merchants - makes the best use out of the port.
 
The Hambantota port is'nt a failure but a it turned out to be a white elephant project of the former regime, In order of it's haste to build it to satisfy the ego of their tin pot dictator Rajapaksa, Once those short comings are cleared and the bunkering facility comes in to full operation, Hambantota will be a hub port in between Dubai and Singapore as far as Indian ocean maritime trade is concerned, No Indian port now in operation or the and the ones thats planned in the future would be able to compete with

If H'tota port is not failure, how come it becomes a white elephant project? How can hasting a phase of the project make it unsuitable and a white elephant? You are eating your own foot hear; don't you think? Stop demonizing MR and see the ground reality.
 

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