China pledges investment to create ‘maritime silk road’

China will make a multi-billion dollar investment in several port related projects in Sri Lanka, including a new US$601m container terminal in Hambantota Port and the US$1.4bn development of Colombo as a “Port City”.

China Merchants Holdings (International) (CMHI) and China Harbour Engineering Company will fund part of the development of Hambantota Port; the new terminal will have four container berths on a 1,298 m-shoreline,with an annual capacity of 2m teu.

The two Chinese companies will come together in a joint venture, called ‘China JV’, investing US$391m in cash for a 65% stake in the project while the Sri Lanka Ports Authority (SLPA) will supply US$210m worth of assets, including civil engineering work and equipment, for a 35% stake.