Sri Lanka port secures China supply routes

[Skyline]

A $US500 million ($A562.65 million) Chinese-built port opens this week in Sri Lanka, giving Beijing a vital foothold on the world's busiest international shipping lane as it seeks to secure maritime supply routes.
The massive terminal in Colombo is located mid-way on the lucrative east-west sea route and has facilities on a par with Singapore and Dubai.

The Colombo International Container Terminal (CICT), which is 85 per cent owned by the state-run China Merchant Holdings International, is designed to handle mega ships - a first for Sri Lanka which is aiming to become the region's shipping hub.

The involvement of such a large Chinese company appears to conform to a pattern by Beijing after it sealed a deal in January to acquire the Pakistani port of Gwadar at a time when it is also building a $US14 million "dry port" in the Nepalese city of Larcha, near Tibet.

Chinese loans and expertise were also instrumental in the construction of a new $US450 million deep-sea port at the southern Sri Lankan city of Hambantota which opened in June 2012.
Independent shipping expert, Rohan Masakorala, says the new terminal made economic sense for China to tap in to the growing South Asian container cargo and gave Beijing a foothold along a strategic sea route.
"Terminal investments are a good business which can give a very good return," said Masakorala, a former secretary-general of the Singapore-based Asian Shippers Council.
"Through this investment, China is also securing the safety and efficiency of their main supply chain."
Masakorala, who heads the Shippers' Academy Colombo, said about half of all world sea trade passed through the east-west shipping route and a presence at a mid-way point along that gives China a commanding position.
The Chinese investment in Sri Lanka, which is under pressure from Western powers and India over its human rights record, has raised fears in New Delhi about Beijing's influence in the neighbourhood.
But Priyath Bandu Wickrama, chairman of the state-run Sri Lanka Ports Authority (SLPA), insisted that India had nothing to fear from the new Colombo port and could in fact be a major beneficiary.
"We will not allow any military base at our ports nor will we allow them to be used for any strategic military purpose by anyone," Wickrama said.


Read more: Sri Lanka port secures China supply routes | News.com.au

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Stupid decision by GoSL.

 

[veekysingh]

that's good form SL , you own 15% without spending a single penny.

 

[Gibbs]

that's good form SL , you own 15% without spending a single penny.

Got to agree with @Skyline.. It's a utterly moronic decision by the GOSL.. This terminal will be the catalyst for Colombo port and the country that is going to be the shipping hub in the region.. Dubai and Singapore will be in direct competition with Colombo south harbor.. Something that important needs to be in the hands of the country

 

[veekysingh]

Got to agree with @Skyline.. It's a utterly moronic decision by the GOSL.. This terminal will be the catalyst for Colombo port and the country that is going to be the shipping hub in the region.. Dubai and Singapore will be in direct competition with Colombo south harbor.. Something that important needs to be in the hands of the country

its business , you have to give something to get something. you know what I mean.

 

[Skyline]

its business , you have to give something to get something. you know what I mean.

yeah, dude but 85%? It goes out of control from our hands.

 

[veekysingh]

yeah, dude but 85%? It goes out of control from our hands.

see the bright side , you are getting 15% , and a rich economy as friend to give you loan whenever u ask.

 

[Skyline]

see the bright side , you are getting 15% , and a rich economy as friend to give you loan whenever u ask.

This is another reason to worry> Colombo, H’tota declared as Free Ports

The Colombo and Hambantota ports have been declared as Free Ports by gazettee notification, states a Finance and Planning press release.

Further, the gazette envisages the Katunayake Export Processing Zone, Koggala Export Processing Zone and Mattala Rajapaksa International Air Port as bonded areas.

- See more at: Colombo, H


I agree with government's decision making "Free Ports" but major share goes to China..

 

[harpoon]

yeah, dude but 85%? It goes out of control from our hands.

There is no such thing as free lunch.

 

[Gibbs]

First caller CMA CGM’s Executive Officer Farid Salem say Sri Lanka is poised for a great leap forward with opening of $ 500 m new deep sea port today.. From today Colombo South joins Singapore and Dubai deep sea ports that could handle mega ships in the region

 

[Gibbs]

Can some Moderator merge these pls..

http://www.defence.pk/forums/centra...lanka-opens-500-million-port-built-china.html

http://www.defence.pk/forums/world-...a-eyes-south-asian-hub-chinese-mega-port.html

 

[HeinzG]

Got to agree with @Skyline.. It's a utterly moronic decision by the GOSL.. This terminal will be the catalyst for Colombo port and the country that is going to be the shipping hub in the region.. Dubai and Singapore will be in direct competition with Colombo south harbor.. Something that important needs to be in the hands of the country

yeah, dude but 85%? It goes out of control from our hands.

But Sri Lanka do not have enough capital to do it alone. There fore it has to find someone to finance it. Though this will increase job opportunities and also pour more dollars into the economy. The major downside is if China wants to use it as a naval base.

 

[Gibbs]

But Sri Lanka do not have enough capital to do it alone. There fore it has to find someone to finance it. Though this will increase job opportunities and also pour more dollars into the economy. The major downside is if China wants to use it as a naval base.

Mate.. The company I work for had commercial interests in that project.. The terminal was going to be build by Korean company Hyundai Heavy Construction on operate transfer ownership with Keels PLC the Sri Lankan blue chip.. The regime and the family didn't get the required cut backs from the Koreans so gave it to China Merchant Holdings International on huge cut backs amounting to billions and at the expense to the country

 

[HeinzG]

Mate.. The company I work for had commercial interests in that project.. The terminal was going to be build by Korean company Hyundai Heavy Construction on operate transfer ownership with Keels PLC the Sri Lankan blue chip.. The regime and the family didn't get the required cut backs from the Koreans so gave it to China Merchant Holdings International on huge cut backs amounting to billions and at the expense to the country

Really..?

 

[NGV-H]

Got to agree with @Skyline.. It's a utterly moronic decision by the GOSL.. This terminal will be the catalyst for Colombo port and the country that is going to be the shipping hub in the region.. Dubai and Singapore will be in direct competition with Colombo south harbor.. Something that important needs to be in the hands of the country

Actually it might not be a stupid decision, it's more of a win-win.
Sri Lanka gets added infrastructure, which brings in investment and gives a major boost to the economy. Even if it was 100% Chinese owned, it would bring millions of dollars into the country. It being 15% Sri Lankan owned is just a bonus. Getting the infrastructure in place is the major point.