Mekatanam ridei 
CM Port steams ahead with Hambantota opportunity
Monday, 25 September 2017 00:00
Aims to begin by Nov., calls on SL private sector to join effort
Targets investment for zone, bids received for $2.5b refinery
CM Port mulls tying up with Sinopec or China Petroleum on bunkering
Insists decision to takeover port was purely a business decision
Says H’tota can become a global port provided broader reforms happen
By Uditha Jayasinghe
Converting the newly acquired Hambantota into a global maritime centre to partner with the country’s growth and attract investment would be the key aim of China Merchant Ports Holdings, a top official said calling on local companies to join the effort.
China Merchant Port Holdings (CM Port) entered into $1.12 billion partnership with the State-run Sri Lanka Ports Authority (SLPA) in July to take over the port after many months of negotiations. The company also expects to invest $600 million to make the port fully operational.
The Chinese company may begin operations in November once the two subsidiary companies with the SLPA are established. Land held by the port will be invested with these two companies that are vested in Sri Lanka and will not be directly held by CM Port.
“We are targeting to turn the Hambantota port into a major hub connecting the neighboring countries as well as the rest of the world. That is the national vision of Sri Lanka and it is also our mission as an operator,” said China Merchant Port Holdings Company Deputy General Manager Hang Tian.
Addressing a group of local shipping industry representatives at the Ceylon Chamber of Commerce (CCC) on Friday, Hang insisted that the decision to take over the port had been an independent business decision and the company would work to attract significant investment to the investment zone linked to the port.
Currently large investments in three plans of cement, LNG, LPG and a petroleum refinery are being considered that could run up to about $3 billion in investment, according to the Board of Investment. Two Chinese companies have already submitted bids for the refinery.
Responding to questions after the address, Hang also said CM Port is considering tying up with a global player such as Sinopec or China Petroleum to funnel competitively priced oil to the bunkering facilities at Hambantota and work with a local retailer to operate that aspect of the business since CM Port customarily does not supply bunkering services.
“Our intention is to contribute to the rich vision of Sri Lanka. We are able to bring in new investment, new management methodology, and new technology by leveraging on the synergy of CM Port’s global network,” Hang added.
CM Port is currently developing a business plan that will include port services, a business incubator, integrated logistics and a vessel supply service that would attract more international companies to the Hambantota Port, Hang said. He then went on to say that CM Port is proficient is running a free port such as Hambantota as the port of Hong Kong, which CM Port has run for over 140 years as a free port.
He also appealed to local investors to join CM Port to make the venture a success.
“We believe Hambantota port has the potential to play a more important role in the transformation of Sri Lanka’s maritime industry and economy. The Hambantota port is closer to major marine routes than Colombo port; more importantly, it is located in southern Sri Lanka, an area that is not as developed so far; therefore, we can be certain in the long run that this port has tremendous potential to become the largest port in the country, if it is well planned and operated efficiently.”
The port’s strategic location makes it ideal to be a hub for shipment growth in South Asia and East Africa, he said, predicting that Chinese retailers would find it a lucrative investment.
However, Hang also called on the Sri Lankan Government to continue its reforms to improve the country’s ease of doing business capacity to increase its attractiveness as an investment destination.
“Our expectation is that South Asia and Africa, especially east Africa is set to become another global factory. Sri Lanka happens to cover these two economic hinterlands, encompassing a population of 2.5 billion people seeking economic transformation. Sri Lanka’s dream of becoming an international maritime and logistics centre can be realised if it seizes this opportunity.”
- http://www.ft.lk/top-story/CM-Port-steams-ahead-with-Hambantota-opportunity/26-640300
CM Port steams ahead with Hambantota opportunity
Monday, 25 September 2017 00:00
Aims to begin by Nov., calls on SL private sector to join effort
Targets investment for zone, bids received for $2.5b refinery
CM Port mulls tying up with Sinopec or China Petroleum on bunkering
Insists decision to takeover port was purely a business decision
Says H’tota can become a global port provided broader reforms happen
By Uditha Jayasinghe
Converting the newly acquired Hambantota into a global maritime centre to partner with the country’s growth and attract investment would be the key aim of China Merchant Ports Holdings, a top official said calling on local companies to join the effort.
China Merchant Port Holdings (CM Port) entered into $1.12 billion partnership with the State-run Sri Lanka Ports Authority (SLPA) in July to take over the port after many months of negotiations. The company also expects to invest $600 million to make the port fully operational.
The Chinese company may begin operations in November once the two subsidiary companies with the SLPA are established. Land held by the port will be invested with these two companies that are vested in Sri Lanka and will not be directly held by CM Port.
“We are targeting to turn the Hambantota port into a major hub connecting the neighboring countries as well as the rest of the world. That is the national vision of Sri Lanka and it is also our mission as an operator,” said China Merchant Port Holdings Company Deputy General Manager Hang Tian.
Addressing a group of local shipping industry representatives at the Ceylon Chamber of Commerce (CCC) on Friday, Hang insisted that the decision to take over the port had been an independent business decision and the company would work to attract significant investment to the investment zone linked to the port.
Currently large investments in three plans of cement, LNG, LPG and a petroleum refinery are being considered that could run up to about $3 billion in investment, according to the Board of Investment. Two Chinese companies have already submitted bids for the refinery.
Responding to questions after the address, Hang also said CM Port is considering tying up with a global player such as Sinopec or China Petroleum to funnel competitively priced oil to the bunkering facilities at Hambantota and work with a local retailer to operate that aspect of the business since CM Port customarily does not supply bunkering services.
“Our intention is to contribute to the rich vision of Sri Lanka. We are able to bring in new investment, new management methodology, and new technology by leveraging on the synergy of CM Port’s global network,” Hang added.
CM Port is currently developing a business plan that will include port services, a business incubator, integrated logistics and a vessel supply service that would attract more international companies to the Hambantota Port, Hang said. He then went on to say that CM Port is proficient is running a free port such as Hambantota as the port of Hong Kong, which CM Port has run for over 140 years as a free port.
He also appealed to local investors to join CM Port to make the venture a success.
“We believe Hambantota port has the potential to play a more important role in the transformation of Sri Lanka’s maritime industry and economy. The Hambantota port is closer to major marine routes than Colombo port; more importantly, it is located in southern Sri Lanka, an area that is not as developed so far; therefore, we can be certain in the long run that this port has tremendous potential to become the largest port in the country, if it is well planned and operated efficiently.”
The port’s strategic location makes it ideal to be a hub for shipment growth in South Asia and East Africa, he said, predicting that Chinese retailers would find it a lucrative investment.
However, Hang also called on the Sri Lankan Government to continue its reforms to improve the country’s ease of doing business capacity to increase its attractiveness as an investment destination.
“Our expectation is that South Asia and Africa, especially east Africa is set to become another global factory. Sri Lanka happens to cover these two economic hinterlands, encompassing a population of 2.5 billion people seeking economic transformation. Sri Lanka’s dream of becoming an international maritime and logistics centre can be realised if it seizes this opportunity.”
- http://www.ft.lk/top-story/CM-Port-steams-ahead-with-Hambantota-opportunity/26-640300
