THE takeover by China Overseas Port Holding Company (COPHC) of container terminal concession at Gwadar, Pakistan, Singapore's PSA International withdrew, is viewed as good for India...
China takeover of Pakistani terminal from PSA good for India: Drewry THE takeover by China Overseas Port Holding Company (COPHC) of container terminal concession at Gwadar, Pakistan, Singapore's PSA International withdrew, is viewed as good for India by London-based Drewry Maritime Research.
China's increased presence in the region has rattled India, anxious at the foothold China is securing, despite Chinese reassurances that the projects are solely commercial.
COPHC has gained an ideal geographic location just 70 kilometres east of the Pakistan-Iran border and just outside of Strait of Hormuz removing any problems of Middle-East Gulf conflict and blockage disrupting operations.
The terminal will have three to four berths and be dredged to 14 metres, making it an ideal transshipment in the Middle East and the Indian subcontinent as well as a gateway into Pakistan's hinterland and bordering with China. The move into the region includes heavy investment in Sri Lankan port of Hambantota at 85 per cent of the Phase 1 costs of US$361 million which is funded by the Ex-Im Bank of China. The addition of two further phases will support a 20 million TEU capacity to cope with growing east-west shipping demand.
Additional investment of the Sri Lankan South Harbour Container Terminal includes $500 million investment by Hong Kong's China Merchants Holding International in a first phase development to open in July 2013 with a capacity of 2.4 million TEU.
China cites the Bangladesh container terminal in Chittagong as a further location in the region, adding to a roster of infrastructure projects in the country.