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54-453: Construction of the port commenced in January 2008. In 2016, it reported an operating profit of $ 1.81 million but was considered economically unviable. As debt repayment got difficult, the newly-elected government decided to privatise an 80% stake of the port to raise foreign exchange in order to repay maturing sovereign bonds unrelated to the port. Of the two bidding companies, China Merchants Port

108-423: A Liquid Petroleum Gas (LPG) terminal which imports butane and propane and produces LPG to sell domestically or re-export. Within the first 14 months, it had handled 413,000 metric tonnes of LPG, 60% of which was exported to Bangladesh, Maldives and India. As of September the terminal handles around 15 – 20 ship calls per month and it is expected to increase up to 30. State-owned Litro Gas operates LPG terminal with

162-563: A 'Strategic-trap diplomacy'. In July 2018, the Sri Lankan government announced it would relocate its naval base at Galle to Hambantota. In 2019, The HIPG introduced automation, represented the port in several international summits and signed agreements with international shipping companies. As a result the nine-storey administration building of the port, the Hambantota Maritime Centre became 95% occupied and in just one year under

216-562: A 2005 agreement between Sri Lanka and China that both countries would facilitate the involvement of Chinese companies in Hambantota's refueling facilities and oil tank projects, China Huanqiu Contracting & Engineering Corporation became a contractor at Hambantota. After India declined to fund development of the port, Sri Lanka next sought funding from China. In July 2006, Sri Lankan foreign minister Mangala Samaraweera met in China with Li Ruogu ,

270-616: A US$ 1.3 billion agreement for the Hambantota port project in 2007, with financing from China Exim Bank and China Merchants Port, while China Harbour Engineering Corporation (CHEC) is responsible for the construction of the port. With the Port of Hambantota's expansion, China Merchants Port Holdings has become the major shareholder of the Hambantota Port. Sirisena, a member of the Parliament of Sri Lanka, negotiates with China Merchants Port and sells

324-434: A second feasibility study was commissioned, this time from Danish consulting firm Ramboll . Ramboll reached conclusions similar to those from SNC-Lavalin. The Ramboll study recommended the Hambantota port to bring in revenue by allowing the transport of non-containerised cargo before expanding the port to handle cargo containers, to allow the Port of Colombo to reach its capacity. The Rajapaksa administration approached both

378-585: A storage capacity of 3,000 metric tonnes. The SLPA had decided to divert all vehicle shipments to the Ruhunu Magampura Mahinda Rajapaksa International port from May 31, 2012, as a measure to relieve the congestion at Sri Lanka's main port Colombo Harbour . On June 6, 2012, Ruhunu Magampura Mahinda Rajapaksa International Port officially started transshipment operations with the N4K FRICIA ship from Japan containing 15 vehicles and

432-417: A turnover of 700,000 units per month. Hambantota is poised to increase its involvement in the bunkering and oil refining industries, and it has the potential of becoming a significant hub for cruise activities. The United National Front had pledged to build a seaport in Hambantota on winning the 2001 Sri Lankan parliamentary election . After victory, Sri Lankan Prime Minister Ranil Wickremesinghe announced

486-403: Is 223. China Merchants Port has operations in 25 countries, with a network of 41 ports by 2020, including Sri Lanka's Colombo International Container Terminal Limited and Togo's Lomé Container Terminal S.A. The parent company, China Merchants Group, achieved sales of CNY 649.9 billion in 2019. In 2020, the company had total revenue of US$ 1,147,838,440, with the port business accounting for 93% of

540-469: Is considered as a Red Chip company as the Hong Kong Stock Exchange listing. The company has port facilities in mainland China and Hong Kong , and the predecessor was founded in 1991. The predecessor of the parent company was established in 1872 and was the preeminent industrial and commercial group in mainland China. Before changing its name to China Merchants Port Holdings Company Limited,

594-513: Is one of three Chinese enterprises named among the top 10 terminal operators in the world; the other two are Hutchison Port Holdings and COSCO Shipping Ports . In the 2018 Lloyd's list of the top 10 global port operators, China Merchants Port was ranked fifth, as of 2018, they have a network of 34 ports in 18 countries around the world, such as Houston in the US and Newcastle in Australia. The majority of

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648-671: Is viewed as part of the 21st Century Maritime Silk Road (the maritime part of China's Belt and Road Initiative ) that runs from the Chinese coast via the Suez Canal to the Mediterranean, and from there to the Upper Adriatic region of Trieste with its rail connections to Central and Eastern Europe . Sri Lanka is situated along the key shipping route between the Malacca Straits and

702-476: The Ellison Sun with 1000 vehicles from Chennai Harbour, India. Japanese, South Korean and Indian car makers have begun transshipping increasing numbers of vehicles through the port. In the first nine months of 2014, the number of vehicles handled at Hambantota crossed the 100,000 mark, up more than 300% compared to the same period in 2013, with the number of ship calls more than doubling to 161. The biggest user of

756-594: The Suez Canal , which links Asia and Europe . An estimated 36,000 ships, including 4,500 oil tankers , use the route annually. A new port will help relieve pressure on the Colombo port, and also provide services to ships that normally take three-and-a-half-day detours from their shipping lanes to receive these services, including refueling, maintenance, logistics and buying provisions and medical supplies. The Sri Lankan government contracted with China Merchants Group , one of that country's state-owned enterprises , to build

810-466: The "Regaining Sri Lanka" economic development programme in 2002, which identified the Hambantota port for development. The plan also included building a refinery , petrochemical industries , a coal powered thermal power station , and a desalination plant . Beginning in the early 2000s, the Sri Lankan government sought to obtain funding from international creditors to develop Hambantota. In June 2002, Canadian engineering and construction firm SNC-Lavalin

864-543: The Chief Operating Officer of HIPG in Sri Lanka, conveyed contentment with the advancement of the port, affirming that it is successfully achieving its objectives and serving its intended purposes. He also noted that the port facilitated nearly 600,000 tonnes of bunkering operations last year, following the leasing of its bunkering facility to Sinopec . In 2020 Sinopec's Sri Lankan unit expanded Sri Lanka’s share of

918-475: The Hambantota port could harm their interests in the Indian Ocean. The large Chinese loans, the inability of the Sri Lankan government to service the loans, and the subsequent 99-year Chinese lease on the port have also led to accusations that China was practising debt-trap diplomacy , the factual accuracy of which is disputed. In September 2021, Sri Lankan geopolitics analyst Asanga Abeyagoonasekera described of

972-763: The Latin America region. Besides, the company also engaged with the Sikan Island Container Terminal located in Nigeria, the Multipurpose Port of Doraleh located in Djibouti, Colombo International Container Terminal Limited and the Hambantota Port project in Sri Lanka in relation to China's Belt and Road Initiative. The company is also helping to fund a US$ 10 billion Tanzanian port in Bagamoyo, Tanzania, promoted by

1026-639: The Middle East. The company has acquired 49% stake in Terminal Link, the combination of Compagnie Maritime d'Affrètement (CMA) and Compagnie Générale Maritime (CGM), as well as the purchase of 90% stock in TCP Participações SA, A, the second largest container terminal in Brazil with a design capacity of 1.5 million TEU, for US$ 923.7 million. This acquisition in 2017 allowed the company to expand its presence in

1080-701: The People's Republic of China. Port facilities are located in Hong Kong and Mainland China. Its national port network is spread across the Pearl River Delta, Bohai Economic Zone, Xiamen Bay Economic Zone, Yangtze River Delta and Southwest China. This includes the coastal hub ports of Hong Kong, Shanghai , Qingdao and Xiamen Bay. Besides the operations in Hong Kong and Mainland China, it also operates overseas. Its investments are concentrated in developing countries such as Nigeria and among other African countries, as well as

1134-507: The Port of Hambantota. In December 2016, a mob of workers who were believed to be backed by Rajapaksa loyalists protesting against the leasing of the port vandalised the port and took several ships hostage. The 13-storey building was taken over by the strikers and was flooded, and CCTV systems and electricity were shut down. However, swift action by the Navy rescued the ships, and repair of damaged infrastructure began. The government accused leaders of

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1188-652: The Ports Authority rejected the report as being non-comprehensive and lacking in primary research. The recommendation to begin container operations at the first stage of the project was criticised for ignoring the potential impact on existing operations at the Port of Colombo . Canada was concerned about financing the project due to Sri Lankan domestic politics and the project did not advance. During his 2005 presidential campaign, Hambantota native Mahinda Rajapaksa had pledged to revitalize Hambantota's economy. After his election,

1242-568: The Tanzanian government. Eurofos Terminal is a container terminal in Fos-sur-Mer, France. China Merchants Port acquired a 49% “advantageous stake” in Terminal Link in 2013, which is the subsidiary of CMA CGM, the name of two predecessor companies combined, Compagnie Maritime d'Affrètement (CMA) and Compagnie Générale Maritime (CGM), the world's third-largest container shipping company in France. Meanwhile,

1296-603: The United States and India with the Ramboll study and sought funding for the Hambantota Port Project. Both countries declined. One of the first companies involved in the port project was China Huanqiu Contracting and Engineering Corporation, a subsidiary of the state-owned China National Petroleum Corporation . China Huanqiu Contracting & Engineering Corporation had been doing business in Sri Lanka since 1997. Following

1350-680: The acquisition from Terminal Link made China Merchants port obtain an approximate 25% share from the only Chinese invested French Mediterranean port in France, the Eurofos terminal in Marseille. Malta Freeport Terminal is a transit hub located in the heart of the Mediterranean. After the Malta Freeport in Marsaxlokk, Malta's container port was franchised to the French shipping company, CMA CGM, at least until

1404-525: The company was formerly known as China Merchants Holdings (International) Company Limited. On 28 May 1991, the company's predecessor was founded in Hong Kong. On 16 June 1997, the company adopted the title China Merchants Holdings (International) Company Limited ( 招商局國際有限公司 ). On 15 July 1997, the company was listed in the Hong Kong Stock Exchange . On 10 August 2016, the company adopted its current title. China Merchants Port's predecessor

1458-401: The company's revenue and the bonded logistics and other operations accounting for the rest. In February 2018, the company completed the sale of its indirectly owned unit, Shenzhen Chiwan Wharf Holdings Limited, which provides logistics, container terminal and port management services and has interests in operations in general and bulk cargo terminals businesses. The expected net proceeds from

1512-547: The countries among South Asia, especially in Sri Lanka, the port of Hambantota that located in southern Sri Lanka is one of the biggest foreign investment by China Merchants Port. The company has approximately 130 berths for loading and unloading at wharves and piers worldwide, with a capacity of 60 million containers. It controls more than 30% of the berths in mainland China. The company operates through its port operations, bonded logistics business and other businesses. These include container terminal operations, break-bulk terminals,

1566-454: The government's majority stake in the terminal company. They signed an agreement with The Sri Lanka Port Authority in 2017 in which China Merchants Port leased the Port of Hambantota for operation for 99 years. At the same time, China Merchants Port purchase a 70% stake of the Hambantota Port from Sri Lankan government for $ 1.1 billion in July 2017, including the 42-hectares artificial island located at

1620-462: The issue. Then, the ports authority rescinded the agreement with the Chinese operators of the port and replaced it with a concession agreement signed in 2017. Under the 2017 agreement, Sri Lanka Ports Authority created Hambantota International Port Group (HIPG), which then became a joint venture after China Merchant Ports bought an 85% stake in HIPG as part of the Chinese company's $ 1.12 billion investment into

1674-478: The media over an assault on a journalist during the protest. China Merchants Port China Merchants Port Holdings Company Limited ( SEHK :  144 ) is a major conglomerate based in Hong Kong and is involved in a range of businesses such as port operations, general and bulk cargo transportation, container and shipping business, air cargo, logistics park operations and paint products. China Merchants Port

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1728-414: The new container terminal has launched there. This is one of the largest foreign investments in the country, with a total value of more than US$ 500 million. The Hambantota International Port is a port in southern Sri Lanka, is located a few hundred kilometres off the coast of India, on a vital economic and military waterway. Construction and investment in the port have come from China, which first signed

1782-407: The new management the port made a 136% increase in the volume of ro-ro vessels handled and even diversified its services to include other port-related activities such as container handling, general cargo, passenger, bunkering, bulk terminal, gas and project cargo. In February 2021, the Sri Lankan foreign minister Dinesh Gunawardena said the lease of the Hambantota port to China was a mistake made by

1836-587: The operation of logistics parks operated by China Merchants Ports and its associates, including port transportation and airport cargo handling, as well as property development and investment, including the construction of modular buildings and the provision of container terminal services. In addition, China Merchants Port is involved in port development and berth operations, as well as tugboat berthing assistance and barge services when ships arrive in port, cargo handling during loading and unloading, and providing ships with shore power and fresh water. China Merchants Port

1890-586: The ownership of the port will be returned to the Sri Lanka Ports Authority. In 2016, the Sri Lanka Ports Authority had to repay ₨   9 billion ($ 134 million) in construction fees for the Hambantota port, which, by the end of the year, accumulated a loss of ₨   46.7 billion ($ 696 million). After the National United Front won the 2015 presidential and parliamentary elections , Prime Minister Ranil Wickremesinghe visited China to solve

1944-442: The port is not a significant commercial success, although shipping through the port is increasing. As of May 2024, Hambantota port has become a thriving hub for transshipment in the Indian Ocean, particularly for vehicles, with a monthly turnover of 700,000 units. It is set to play a larger role in boosting the bunkering and oil refining industries, and it shows promise as a potential center for cruise activities. Tissa Wickramasinghe,

1998-593: The port is the Hyundai plant near Chennai while Tata and Maruti vehicles also come from Mumbai. In future, all Hyundai vehicles made in South Korea, China and India will be transshipped through Hambantota 15,000 units a month once more yard space is available. In April 2017, making a historic landmark in Sri Lanka, the world's largest pure car and truck carrier (PCTC), the MV Hoegh Trigger , arrived on her maiden call at

2052-622: The port opening. This new equity from China Merchants Port increased Sri Lanka's foreign exchange reserves and facilitated Sri Lanka's repayment of its debts to non-Chinese creditors. TCP Participações SA is a container terminal in Brazil. A quarter of the company's containerised exports and imports depart or arrive in China. In 2017, China Merchants Port agreed to purchase 90% stock in TCP Participações SA for US$ 935 million and increase its annual container throughput “from 1.5 million TEUs to 2.5 million TEUs”. 21st Century Maritime Silk Road Too Many Requests If you report this error to

2106-419: The port. The agreement will expire 99 years after its effective date and allows HIPG to develop and operate the Hambantota port exclusively. The agreement also stipulated the creation of a 15,000-acre special economic zone. The money from China Merchant Ports was used to strengthen Sri Lanka's US dollar reserves and pay short-term foreign debts unrelated to the port owed to non-Chinese creditors. The agreement

2160-481: The port. The port was constructed in two phases. The Chinese government financed phase one with a 15-year commercial loan from China Exim, which lent US$ 306.7 million (85% of the estimated total cost) while the Sri Lanka Ports Authority bore the rest. The loan carried a 6.3% interest rate and specified China Harbour Engineering Company , a state-owned enterprise, as the construction contractor. A $ 76.5-million bunker terminal with an initial capacity of 500,000 tonnes

2214-536: The president of the Export-Import Bank of China (China Exim). After this visit, Sri Lanka and China agreed that both countries would encourage Chinese companies to participate in the port project and encourage the use of concessional loans from China to finance the project. Sri Lankan President Rajapaksa visited China in February 2007 and the visit resulted in China's decision to fund the port development. The port

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2268-451: The previous government, after reports that Colombo was revisiting the agreement. Writing in 2023, academic and former UK diplomat Kerry Brown states that China's relationship to the Hambantota port has become the opposite of the theorized debt-trap modus operandi. Brown observes that China has had to commit more money to the project, expose itself to further risk, and has had to become entangled in complex local politics. As of at least 2024,

2322-441: The regional bunker market and invested $ 5 million on a tanker which flies the Sri Lankan flag. Lanka Marine Services (LMS) partnered with Sinopec in supplying very low sulphur fuel oil (VLSFO). A $ 550 million tax-free port zone was set up outside the port. In 2016 a 15,000 acre SEZ project was announced with 5,000 acres from Hambantota and the rest from Monaragala , Embilipitiya and Matara . In July 2019 LAUGFS Holdings opened

2376-460: The sale are HK$ 3.88 billion (US$ 496.3 million). Source: Table 1 provides information on the company's major managers, specifying each person's full name and their roles. In the quarterly review of Hang Seng Index composition ended on Jun 29 2018, it was announced by Hang Seng Indexes Company that China Merchants Port will be removed from constituent stocks from Sep 10, 2018, and replaced by another. The decision to remove China Merchants Port

2430-495: The shareholders in China Merchants Port are insiders. The insiders held 65.26% of the shares in the company, as the largest shareholder of the company is China Merchants Group, its parent company, accounting for 43% of the total shares, while China Merchants Technology Holdings Co. Ltd. accounting for 21.9% of the shares. Institutions held 27.87% of the float and 9.68% of the shares. The number of Institutions holding shares

2484-522: The strike of protesting against the SEZ that happened in Hambantota, led by members of the Nil Balakaya, an organization created by Namal Rajapaksa ; the government accused them of being political appointees. As a result, a shipping line also sent a bill of $ 400,000 in damages to the port authority. The government and Navy Commander Vice Admiral Ravindra Wijegunaratne were heavily criticized by civil activists and

2538-544: The year 2038. When China Merchants Ports acquired a 49% stake in Terminal Link in 2013, it then obtained an approximate 25% stake in Malta Freeport Terminal while CMA CGM held the rest of the shares (51%). The Port of Colombo is the largest port located in the southwestern shores on the Kelani River of Sri Lanka. China Merchants Port has held a groundbreaking ceremony at the Port of Colombo in Sri Lanka in 2014 as

2592-508: Was built, fitted with LPG tanks and fuel tanks for ships and aircraft, as well as ship repair, shipbuilding and crew change facilities. The first phase of the port was inaugurated on 18 November 2010 by President Mahinda Rajapaksa , whom the port was named after. The accompanying ceremony cost ₨ 18.8 million and was subject to an investigation by the Government for corruption . Jetliner , a Sri Lanka Navy passenger ship that sailed from Galle

2646-431: Was ceremonially berthed and workers unloaded the first consignment of international cargo from Myanmar from the vessel Seruwila . The second phase of construction began in 2012 after China Exim loaned another $ 757 million with an interest rate of 2%. The loan agreement allowed China Harbour Engineering and China Merchants Port to jointly operate the terminal and take a 65% stake in the port for 35 years. After 35 years,

2700-407: Was chosen, which was to pay $ 1.12 billion to Sri Lanka and spend additional amounts to develop the port into full operation. In July 2017, the agreement was signed, but CMPort was allowed a 70% stake. Simultaneously a 99-year lease on the port was granted to CMPort. As of May 2024, the port has transformed into a busy transshipment hub in the Indian Ocean, specifically for vehicles, facilitating

2754-497: Was delayed for several months because of concerns that the port could be used for military purposes and opposition from trade unions and political parties, which called it a sellout of Sri Lankan national assets to China. Former president Rajapaksa criticised the plan, including the special economic zone, and warned of social unrest if the plans were carried through. India and the United States raised concerns that Chinese control of

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2808-514: Was due to its turnover volume and market capitalisation failed to meet the minimum requirements. China Merchants Port invested in 6 terminals in 2005 and increased to 18 by the end of 2017. However, 2009 is the year they start to make overseas investments. As part of China's "Maritime Silk Road" plan, the company has increased its overseas port facility upgrades in recent years. The sea routes, proposed by Chinese Communist Party leader Xi Jinping , aim to connect China to Europe via Southeast Asia and

2862-498: Was founded in Hong Kong on 28 May 1991, and changed to its present name in 1997. Port facilities are located in Hong Kong and Mainland China, such as Shanghai , Tianjin and Qingdao . However, China Merchants Port was truly founded in 1872 as the first merchant company of the Qing dynasty and has experienced a history that stretches from the Republic of China to the official establishment of

2916-576: Was invited to carry out a feasibility study, with funding from the Canadian International Development Agency . The study concluded that the port could be feasibly developed in three stages costing US$ 1.7 billion. It recommended that a joint venture between the Sri Lanka Ports Authority and a private consortium be set up to undertake the project under a build–own–operate–transfer arrangement. A steering committee of

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