amoy
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Really need to distinguish ordinary commercial activities from 'threats' to Indian's dominance in IOR. Both countries in IOR and China are in pursuit of eco. growth for the well being of the peoples that hardly challenges India's 'maritime security' and shall not be over-hyped.
The above for example is attributed to Colombo's optimal location to be developed into a transit hub for shipping lines. Most of such investments are of business sheerly.China bids for Lanka deep water container terminal
A consortium-led by China Merchant Holdings may construct a new deepwater container terminal for Sri Lanka Ports Authority for which negotiations are in final stages, according to a report by Port Technology.
The new port has been necessitated to expand handling capacity and handle larger containerships being deployed on new routes. The new port would increase cargo handling capacity with the addition of three new terminals, Port Technology report added
Construction of the first new container terminal, expected to cost US $400 million, will start in the second quarter of this year on a build-operate-transfer basis, Wickrama said, speaking at a regional port forum in Bandung, Indonesia, earlier this month. Colombo port’s cargo flows are also recovering as trade recovers from recession, Wickrama said.
"Our target for 2010 is four million twenty-foot containers and we are quite confident that we can achieve this target without any difficulty. With the economic recovery in the last two months we experienced a rapid increase in volumes of nearly 20 percent compared to previous years," he told Port Technology.
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An SLPA statement said that cargo forecasts for Colombo had said the port would be reach maximum capacity of around 4.5 million twenty-foot equivalent container units in 2012.
SLPA has already started improving capacity in the port by increasing the yard space, introducing new quay side and yard gantry cranes and installing a modern terminal operation system. Ship traffic and container volumes in Colombo port slumped in 2009 compared with 2008 because of the trade slowdown caused by recession but began picking up towards the end of the year.
SLPA terminals also lost market share to the private South Asia Gateway Terminals in which conglomerate John Keells Holdings has a big stake. The government is holding talks with the consortium in an effort to enhance the royalty payments to ensure it can repay an Asian Development Bank loan taken to dredge the new port and build a breakwater.
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