China is looking to take a stake of up to 85 percent in a strategically important sea port in Myanmar, according to documents reviewed by Reuters, in a move that could heighten tensions over China’s growing economic clout in the country. Beijing has been pushing for preferential access to the deep sea port of Kyauk Pyu on the Bay of Bengal, as part of its ambitious “One Belt, One Road” infrastructure investment plan to deepen its links with economies throughout Asia and beyond.
A consortium led by China’s CITIC Group [CITIC.UL] has proposed taking a 70-85 percent stake in the $7.3 billion deep sea port, according to negotiating documents seen by Reuters and three people familiar with the talks between the Chinese state-owned conglomerate and Myanmar’s civilian government. The size of the proposed Chinese stake is substantially larger than the 50/50 joint venture proposed by Myanmar late last year, an offer rejected by CITIC, said two people involved in the talks. Well-placed sources told Reuters last month that China had signaled it was willing to abandon the controversial $3.6 billion Myitsone dam project in Myanmar, but would be looking in return for concessions on other strategic opportunities in the Southeast Asian nation – including the Bay of Bengal port… Read More
Hutchison Ports will be operating another three ports, adding new markets to the 22 locations that the world’s largest manager of marine trade already has under its control in the area covered by China’s “Belt and Road Initiative”. The port operator has 22 locations in 18 countries along the route, with combined throughput representing 86 per cent of the company’s total, making it one of the major Hong Kong companies benefiting from Beijing’s global trade development initiative.
“Many of the countries like Myanmar, where we started our investment 20 years ago, came long before the much-talked about Belt and Road Initiative,” said Eric lp group managing director in an exclusive interview with South China Morning Post. “We always eye developing countries as they see strong economic growth, as the markets in Europe and the US are saturating.”
Hutchison Ports’ strategy mirrors the belt and road plan led by Chinese President Xi Jinping, of connecting a belt of overland corridors and sea routes in Asia, Africa and Europe through building infrastructure and boosting financial and trade ties for more than 60 countries that lie along the routes… Read More
With Japan’s multi-billion dollar investment coming to Patimban Port, Chinese investors have zeroed in on Indonesia’s logistics industry, expressing interest in helping develop major ports in the country.State port operator Pelindo II has received an investment proposal reportedly amounting to US$5.9 billion from Chinese port operator Ningbo Zhoushan Port Co. Ltd. for its Kalibaru project… Read More
Southeast Asian leaders are hailing economic cooperation with China in helping it realize its ambitious “One Belt, One Road” infrastructure initiative, despite questions about financing and concerns that Beijing’s massive undertaking ignores sovereignty and territorial integrity.
China on Monday wrapped up its first international conference during which Beijing laid out its plans to invest more than U.S. $1 trillion in building a network of ports, roads, railways and other logistics-related projects stretching through Southeast Asia, South Asia and beyond… Read More
Investments from OBOR in Indonesia lower than in other countries Pelindo I to partner with Port of Rotterdam, to ask Chinese firms to join. The Transportation Ministry is gunning for no less than US$25 billion in investments from China, as President Joko “Jokowi” Widodo is scheduled to attend the One Belt One Road (OBOR) summit on Sunday and Monday. The expected investments will include those for port development outside Java, namely Bitung Port in North Sulawesi and Kuala Tanjung Port in North Sumatra. “Kuala Tanjung and Bitung [seaports] are future international hubs […] Our investment priority will be directed at those two places,” Transportation Minister Budi Karya Sumadi said… Read more
Once our path was clear, we worked on boosting investment confidence by strengthening our fundamentals. This is where the second phase of the masterplan – the enhancement of domestic growth – comes into the picture, with the objective of improving the connectivity and integration of our logistics services.
One such example is Port Klang. Considered by many as the Load Centre for Malaysia, the port is currently transforming to become more competitive in today’s fast-paced economy. Our ultimate aim is to propel the world’s 11th busiest port to the top 10 category. To do so, we have planned the Carey Island port project in Selangor to extend Port Klang’s reach and capacity.
Dubbed by some as a “dark horse”, the port project, which will increase Port Klang’s overall cargo from Sumatra, Indonesia, and Thailand and cement its position as one of the key hubs in Asia, gathered momentum with the signing of a memorandum of understanding (MoU) between MMC Port Holdings Sdn Bhd (MMC Ports) and India’s Adani Ports and Special Economic Zone Ltd (APSEZ) to conduct a feasibility study of the project, which is estimated to spur RM200bil in investments.
In a further game-changing development, MMC Ports, Sime Darby Property Bhd and APSEZ also signed a separate MoU to study the feasibility of the development of an integrated maritime city, worth an estimated US$22.78bil (RM100.87bil), to support the Carey Island port project. Read more
As protectionist populism gains increasing traction in Europe and the US, threatening the trade deals and political institutions that have enabled globalisation in the post-World War II decades, trade stakeholders in South East Asia look on in genuine bemusement. Member states of the ASEAN Economic Community (AEC) look to the European Union and NAFTA for inspiration – for the most part, debates about AEC trade and connectivity strictly focus on how to build better bonds, not whether doing so is a good idea or not. But even as AEC member states work together to find new ways of linking their economies by sea and land, their ports and leading terminals compete ferociously to attract traffic and shipping services.
Nowhere is the competitive thrust of the region’s ports more evident than in the Strait of Malacca where the rivalry between Malaysia and Singapore for container transhipment traffic remains intense. Singapore’s PSA-operated facilities saw a slight decline in traffic last year but, after handling some 31m teu, the city-state remains the region’s largest transhipment hub. Efforts to relocate all container handling to a new mega-port at Tuas with some 65m teu capacity are ongoing with the new facility expected to handle all of PSA’s Singapore cargo by 2027.
In Malaysia, Port Klang and Tanjung Pelepas vie with Singapore and each other for transhipment traffic. Port Klang is eager to build a new $44bn, 30m teu capacity port complex on Pulau Carey, but more ports are in the construction pipeline, not least the $7.3bn Malacca Gateway Project for containers and bulk and the $3bn expansion of Kuala Linggi port… Read More
Indonesia is poised to finally take a premier position on global trade flows following the opening of the New Priok container terminal in Jakarta. David Wignall, senior VP at Indonesia Ports Corporation, explained to delegates at the TOC Asia Container Supply Chain event in Singapore this week that, previously, the largest vessels the port could handle was 3,500-4,000 teu. He said the new terminal in the Indonesian capital’s Tanjung Priok port complex could handle vessels up to 18,000 teu, “and this produces a major transformation of logistics in Indonesia and, potentially, South-east Asia”. Mr Wignall added: “As well as improving the port and cargo handling facilities, the project has turned Indonesian Port Company into a genuine port developer.” The first phase of New Priok has capacity for 1.5m teu, with a further 7m teu to be added in future phases – this is in addition to Tanjung Priok’s existing 4m teu capacity. Read More
At the meeting, Mark Argar, a project manager of US based Bechtel Group said the port and logistics centre plays a vital role in the national economy. It is the nation’s blood stream to support both export and import, create jobs for workers and is the gateway port to put into service for the coal industry, this factor is very important. This port is located at a strategic level and regional countries. He also said that his group has a signed a contract with Van Phong company to implement the Hon Khoai port project and it wants to jointly participate in research and feasibility analysis.
For his part, Minister Thang welcomed collaboration from Bechtel and pledged to create the best possible conditions for the ventures success. Within the scope of responsibility of the Ministry of Transport, we will strive to support and facilitate the best possible conditions for the company. Read more