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    South Asia
     Aug 30, 2011


Rock blocks Sri Lanka's flagship port
By Sudha Ramachandran

BANGALORE - Sri Lanka's Hambantota port project, the showpiece of its mounting cooperation with China, has run into a formidable obstacle. A massive rock, its tip barely seven meters from the ocean's surface, at the port's entrance is blocking access for deep-draft ships.

The port was inaugurated by Sri Lankan President Mahinda Rajapaksa in November last year amid much fanfare and marked by the ceremonial berthing of a Sri Lankan ship, Jetliner. But within weeks, speculation was rife that all was not well. No ships had called on the port, fueling speculation that Sri Lanka's ambitions for the project might have been excessive.

It emerged subsequently that at the time of its inauguration the

 
port was not fully ready to begin operations. Apparently, the government went ahead with its opening on November 18 as it was the president's birthday - an "auspicious day", as a statement issued last week by the Sri Lanka Port Authority (SLPA) put it.

In April this year, the reason for the delay in completing construction became public when opposition parliamentarian Harin Fernando drew attention to a rock at the port's entrance. Only shallow vessels could berth at Hambantota, Fernando pointed out, adding that the Jetliner had berthed at the time of the port's inauguration with great difficulty.

The government responded by denying the allegations outright. Deputy Minister for Ports and Highways Rohitha Abeygunawardena sought to deflect criticism by trivializing the issue. He challenged Fernando to come to the harbor and show him the rock.

A few weeks later SLPA chairman Priyath Bandu Wickrema dismissed the "rock blocking port rumor" as "sheer nonsense". There is "no issue with regard to the rock", he declared. He claimed that "the last strip of the rock" had been blasted when the water was let in at the time of filling the harbor basin. "All newspapers carried that picture," he said, claiming that "almost 85% of the rock" had been cleared and the "remaining blasting would be completed during the next few weeks."

After several months of denying the existence of the rock or that it was still standing and posing problems to entry of ships, the government finally admitted early this month that the port's operations had indeed been slowed by a rock.

The US$1.4-billion Hambantota port project is a key component of the Rajapaksa government's effort to rebuild post-war Sri Lanka's infrastructure and to jumpstart its economic revival. Located in Rajapaksa's home constituency, the port is the centerpiece of an ambitious array of infrastructure projects including an international airport, a convention center, expressways etc aimed at transforming this once poor fishing village into Sri Lanka's commercial capital.

Hambantota is 240 km southeast of the capital Colombo. The port was conceived with an eye to relieving congestion at Colombo port. But more importantly, it was expected to transform the island into a major transshipment hub. Its location just six nautical miles from major sea lanes between the Arabian Sea and the Bay of Bengal has made it a valuable shipping hub. Around 70,000 ships a year reportedly ply the waters south of Hambantota.

This is undoubtedly an ambitious project. On completion, the Hambantota Development Zone will include a liquefied natural gas refinery, aviation fuel storage facilities, three separate docks that will give the port transshipment capacity, dry docks for ship repair and construction, and bunkering and refueling facilities.

China, which is the project's main backer, has extended a US$1.24 billion commercial loan towards construction of the port as well as a bunkering facility. It has funded 85% of the project's first phase. The Hambantota project is being executed by a consortium of Chinese companies led by the China Harbor Engineering Company and the Sinohydro Corporation. A substantial part of the labor on the project is also reported to be Chinese.

The feasibility studies on a port at Hambantota were conducted by SNC Lavalin, a Canadian engineering firm, and then by the Ramboll Group, a Danish engineering, design and consultancy company. It is not known whether the feasibility studies cautioned the government over the rock or why the government chose to go ahead with the port construction if it knew of the rock's presence at the port entrance.

Neither Ramboll Group nor the SLPA chairman responded to Asia Time's queries in this regard.

The SLPA has now claimed that removing the rock will cost it an additional $40 million. Given the denials that have shrouded the project and its problems so far, it is possible that the government is fudging these figures too.

The Chinese are reportedly loaning the money for removing the rock.

Neighboring India, which has been watching the newfound Sino-Sri Lankan bonding over the Hambantota port project, will be relieved that it stayed out.

The Rajapaksa government is reported to have offered the project to India first but Delhi did not show interest. The Chinese then grabbed the offer.

Delhi's failure to clinch the Hambantota deal has come under considerable fire from Indian security analysts. "When Delhi slept over Colombo's invitation to build a new port at Hambantota, China stepped in," noted strategic affairs analyst Raja Mohan lamented.

Indeed, India's lethargy did leave the space open for China to step in to construct a port at Hambantota.

However, the controversy currently raging over the port and its viability would have put India in a difficult spot had it, not China, executed the project. It would have provided Sinhala nationalists with ammunition to blame Delhi for the port's troubles.

In the circumstances, Delhi will be heaving a sigh of relief. However this relief is bound to be temporary.

Although the Rajapaksa government has gone out of its way to allay Delhi's apprehensions over the Chinese involvement in the port and repeatedly stressed that it will be operated by Lankans alone, Colombo's growing dependence on China's economic, military and political/diplomatic support has India worried. Will Sri Lanka's dependence on China compel its leaders at some point in future to concede Beijing's demand for access to a port it constructed? Will Colombo follow Myanmar's footsteps?

Interestingly, the ruckus over the rock at Hambantota port has not triggered criticism targeting China. That would have not been the case had India constructed the port. The rock might be blocking ships seeking to access the Hambantota port entrance but phase II of Sino-Sri Lankan cooperation on the project is poised to steam ahead. Besides, Sri Lanka and China recently signed a deal on developing Colombo port as well.

India's High Commission at Colombo and the recently inaugurated Consulate at Hambantota will likely be watching with concern.

Sudha Ramachandran is an independent journalist/researcher based in Bangalore. She can be reached at sudha98@hotmail.com

(Copyright 2011 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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