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* China's growing influence in Sri Lanka worries India
* Proper bunkering operations at the port start in June
* Hambantota is set to be Sri Lanka's biggest port
By Shihar Aneez
COLOMBO, March 4 (Reuters) - Sri Lanka will start storing bunker fuel at the $1.5 billion Hambantota port in June, a senior official said, after years of delays to the Chinese-built installation that sits on strategic shipping lanes, and a key step to making it commercially viable.
The state-run Sri Lanka Ports Authority (SLPA) originally had plans to open the facility for ship fuel in May 2011, six months after President Mahinda Rajapaksa launched the port in his home town on his 65th birthday.
"We are about to get the test samples in March. Then we will do the trials. After that we will start proper bunkering operation in June," Priyath Wickrama, chairman of the SLPA told Reuters in an interview.
The $130 million storage project contains eight tanks of bunker oil for ships and six tanks of aviation fuel and LPG.
The port is envisioned as a refuelling and service point for cargo ships which pass a few kilometres away off the southern tip of the Indian Ocean island nation, on one of the world's busiest East-West shipping lanes.
The growing influence of China in Sri Lanka has worried India, a neighbour that feels hemmed in by a string of similar port developments stretching from Myanmar to Pakistan and that it fears give the Chinese navy a strategic boost in the region. However, the ports are designed for commercial operations and are mostly not yet fully operational.
China has lent $400 million for the first phase of the new port in Hambantota and another $810 million has been given for the second phase with China Communications Construction Company as the contractor.
Wickrama said the expected handling volume in 2013 is about 45,000 metric tonnes (mt) of ship fuel, rising to 125,000 mt in 2015. China Exim Bank has loaned $77 million for the terminal, which the ports authority will operate.
full article: RPT-Sri Lanka takes next step to opening strategic China-built port | Reuters
* Proper bunkering operations at the port start in June
* Hambantota is set to be Sri Lanka's biggest port
By Shihar Aneez
COLOMBO, March 4 (Reuters) - Sri Lanka will start storing bunker fuel at the $1.5 billion Hambantota port in June, a senior official said, after years of delays to the Chinese-built installation that sits on strategic shipping lanes, and a key step to making it commercially viable.
The state-run Sri Lanka Ports Authority (SLPA) originally had plans to open the facility for ship fuel in May 2011, six months after President Mahinda Rajapaksa launched the port in his home town on his 65th birthday.
"We are about to get the test samples in March. Then we will do the trials. After that we will start proper bunkering operation in June," Priyath Wickrama, chairman of the SLPA told Reuters in an interview.
The $130 million storage project contains eight tanks of bunker oil for ships and six tanks of aviation fuel and LPG.
The port is envisioned as a refuelling and service point for cargo ships which pass a few kilometres away off the southern tip of the Indian Ocean island nation, on one of the world's busiest East-West shipping lanes.
The growing influence of China in Sri Lanka has worried India, a neighbour that feels hemmed in by a string of similar port developments stretching from Myanmar to Pakistan and that it fears give the Chinese navy a strategic boost in the region. However, the ports are designed for commercial operations and are mostly not yet fully operational.
China has lent $400 million for the first phase of the new port in Hambantota and another $810 million has been given for the second phase with China Communications Construction Company as the contractor.
Wickrama said the expected handling volume in 2013 is about 45,000 metric tonnes (mt) of ship fuel, rising to 125,000 mt in 2015. China Exim Bank has loaned $77 million for the terminal, which the ports authority will operate.
full article: RPT-Sri Lanka takes next step to opening strategic China-built port | Reuters