India in race for Colombo Port project

NEW DELHI: India will be in contention to build Eastern Container Terminal (ECT) of Colombo Port after the Sri Lankan government opened this project for bidding removing the Chinese company which was earlier involved in this key project.

“Sri Lanka wants to make ECT viable. India will be one of key users of the ECT as it closer to it. The project has been opened up for bidding,” Sri Lankan foreign minister Ravi Karunanayake who is on his maiden trip abroad in his current role told a select group of media persons here on Wednesday. Karunanayake was here on a two-day trip within days of assuming charge and held wide-ranging discussions with PM, Foreign Minister, NSA and Foreign Secretary.

Colombo wants a foreign country to partner with the Sri Lanka Ports Authority (SLPA) to invest and take over the ECT (of Colombo port) in private-public partnership mode. India has shown interest in the East Terminal and Colombo port. Seventy-five per cent of the trans-shipment goes to India and Delh is looking at getting a stake in Colombo port.

The state-run Container Corporation of India (Concor) has formed a consortium with APM Terminals B V, John Keells Holdings and Maersk Line to bid for the development of East Container Terminal in Colombo. The total project value is likely to be approximately $550-600 million. The South Terminal of the Colombo port is already owned and operated by state-run China Merchant Holdings (International). Colombo Port is the busiest in Sri Lanka and ranks among the top 35 ports in the world.

When asked about discussions between India and Colombo on Sri Lanka’s participation in China’s mega One Belt One Road project the visiting Minister said while there was no dialogue on this subject during his current trip the two countries have been hold interactions on the issue. “Delhi and Colombo hold discussions on issues of regional interests…while Sri Lanka for 5,000 years have been transhipment hub for India, Japan and China and continue to promote use of its territory and waters for commercial purposes movement of military assets in Lankan waters is prohibited.”

Karunanayake hinted Colombo is in touch with India over its concerns regarding the OBOR initiative notwithstanding Lankan PM visit to Beijing for the OBOR Summit between May 14-16. Incidentally the Lankan PM visited India ahead of his Beijing trip and Modi was in Colombo days ahead of the mega event.

China’s grandiose global connectivity initiative – OBOR -- linking China with Europe via SE Asia & C Asia through land & sea links) has potential of adverse economic implications for countries in South Asia as reflected by the situation in Sri Lankan that has run into a huge debt trap by welcoming Chinese funded projects.