India To build INR 525 Crores Port In Sri lanka next to Chinese run jetty
A new terminal will be built next to a US$500-million Chinese-run jetty, in what local authorities call the largest investment ever in the country’s port sector. India’s Adani Group will hold a 51 per cent controlling stake in the joint venture known as the Colombo West International Terminal
In December 2017, unable to repay a huge Chinese loan, Sri Lanka had to permit China Merchants Port Holdings to take over the southern Hambantota port, which straddles the world’s busiest east-west shipping route. The deal, which gave the Chinese company a 99-year lease, raised fears about Beijing’s use of “debt traps” in exerting its influence abroad.
Two Chinese submarines had berthed at the CICT in 2014, sparking concerns in India as neighbour Sri Lanka is within its sphere of influence. Since then, Sri Lanka has refused permission for more Chinese submarines to be stationed there.
The United States also expressed concerns that a Chinese foothold at Hambantota could give Beijing a military advantage in the Indian Ocean. Though Chinese know that one wrong move and the IAF will send every Chinese Floater to the bottom of the Bay of Bengal or the Arabian Sea.
Now an Indian company has entered into a INR 525 Crores deal to build a strategic deep-sea container terminal in Sri Lanka, officials said, in a move to block any nefarious designs of China in the region.
The Sri Lanka Ports Authority (SLPA) said it signed an agreement with India’s Adani Group to build a new terminal next to a INR 375 Crores Chinese-run jetty at the sprawling port in the capital Colombo.
“The agreement worth more than INR 525 Crores is the largest foreign investment ever in the port sector of Sri Lanka,” the SLPA said in a statement.
It said Adani will enter into a partnership with a local conglomerate, John Keells, and the Sri Lankan government-owned SLPA as a minority partner.
John Keells said it will have 34 per cent of the company while Adani will have a 51 per cent controlling stake in the joint venture known as the Colombo West International Terminal.
The new container jetty will be 1.4km in length, with a depth of 20 metres and an annual capacity to handle 3.2 million containers.
The first phase of the project with a 600-metre terminal is due to be completed within two years, the company said. The terminal will revert to Sri Lanka ownership after 35 years of operation.
Plans to allow India into the strategic Colombo port goes back several years, but they were scuttled in February when trade unions linked to the ruling coalition opposed giving New Delhi a partially built terminal within the port. Later, the government asked Indians to build a brand new terminal adjoining the Chinese-operated Colombo International Container Terminal (CICT).
Colombo is located in the Indian Ocean between the major hubs of Dubai and Singapore, meaning influence at its ports is highly sought after.
