Sri Lanka to open new port funded by Chinese loan

SRI LANKA's new Port of Hambantota on the southern coast that is estimated to cost US$1.5 billion to build is expected to start receiving ships from November, according to officials.

The port has been constructed with a Chinese loan as part of a $6 billion drive to rebuild the island nation's infrastructure after a quarter century of war, reports Reuters.

"This is part of making this country an emerging wonder of Asia," President Mahinda Rajapaksa was quoted as saying after launching the port.

Hambantota is one of four ports being built or upgraded under President Rajapaksa's plan to renew the country's $42 billion economy by returning it to its old and lucrative role as a trading hub.

Built to handle 2,500 ships annually in the first stage, the new port is located along the East-West shipping lane and is ultimately meant to challenge Singapore's status as a regional shipping hub, the report said.

Sri Lanka now handles around 6,000 ships annually at its only port in Colombo on the western coast, which requires ships plying the East-West shipping lane to divert course.

Beijing has loaned over $425 million for the first phase of the Hambantota Port project including the bunkering facility. Colombo is negotiating for a further $800 million loan for the second phase.

In addition to cargo handling, Hambantota will have a bunkering facility and a tank farm project.
(Source:www.schednet.com)