In recent years, China has operated a number of ports abroad, among which Hambantota Port in Sri Lanka is one of the important ports invested and operated by China. The port is strategically located and in good condition, and in order to obtain the 99-year lease of the port, China has invested more than one billion dollars.
However, in less than two years, Sri Lanka** suddenly expressed its desire to revoke the lease and return our country to the port. However, tearing up the contract is not that easy.
Located in the capital of Sri Lanka's Hambantota district, Hambantota Port is a deep-water port that can safely accommodate a wide range of large vessels. What is particularly striking is that Hambantota Port is located on the first route of the Indian Ocean, and has a unique geographical location as a center radiating to many surrounding countries.
Hambantota Port is located in the southern part of Sri Lanka and happens to be in an important position on the Indian Ocean shipping route. Through this port, we can form an "iron triangle" of Indian Ocean shipping with Gwadar Port (located in Pakistan) and Kyaukphyu Port (located in Myanmar).
For a long time, 80% of China's top imports have relied on the Indian Ocean-South China Sea route, but this route needs to pass through the Strait of Malacca, which not only has a range of more than 10,000 kilometers, but also affects China's energy security to a certain extent.
In order to break this situation, China has not only built oil pipelines on land, but also bypassed the Strait of Malacca by operating ports.
Hambantota Port is an important port for various routes, through the operation of this port, we can transit the Middle East and Africa through Hambantota Port, and then directly transport to China through Kyaukphyu Port, China-Myanmar Railway and China-Myanmar Oil and Gas Pipeline, so as to avoid the restrictions of the Strait of Malacca.
At the same time, the Hambantota port is located on the Indian Ocean shipping route and has a large flow rate, and once rebuilt and operational, its cargo volume will exceed that of the Strait of Malacca, which will not only bring huge income to Sri Lanka**, but also create jobs and improve the living standards of the local people.
From any point of view, China's assistance to Sri Lanka's Hambantota port is a win-win deal. However, Sri Lanka's Rajapaksa believes that the 99-year lease is a mistake and therefore he will renegotiate with the Chinese side to reach a better deal.
With this move, he hopes to establish himself as a neutral country while maintaining good relations with China and India.
He did not expect that this remark not only aroused the dissatisfaction of the Chinese people, but even Russia** praised it as an "unwise move". Because if Sri Lanka really wants to "claim" or renegotiate the lease, then what awaits them will not only be astronomical compensation, but also the loss of China's "friendship" and even an important position in the "Belt and Road", which is obviously a greater loss for Sri Lanka.
Rajapaksa may have been overconfident in his remarks about it, ignoring the existence of a commercial agreement between Sri Lankan and Chinese companies on the operation of the Hambantota port. According to the agreement, China invested 11$200 million acquired a 70% stake in the port and a 99-year lease.
If Sri Lanka** defaults without cause, it could face up to US$10 billion in liquidated damages.
As a commercial project, we must adhere to commercial principles, and the friendship between China and Sri Lanka cannot be a reason to waive liquidated damages. Sri Lanka is a developing country with a heavy debt burden that cannot afford $10 billion in liquidated damages.
After careful consideration, Rajapaksa decided not to renegotiate with the Chinese side. He said Sri Lanka has never changed its position and will not renegotiate the Hambantota port cooperation agreement.
They are more concerned about investors' sense of security and the ownership of border controls.
Sri Lanka's aim is to clarify the management of airports and ports to ensure that it does not get involved in conflicts between major powers, and to prevent China from using its ports for military purposes, so as not to provoke India's displeasure.
Rajapaksa's worries are somewhat superfluous, because our projects abroad are purely commercial in nature, we have always respected the sovereignty and territorial integrity of other countries, and we will not interfere in the internal affairs of other countries when investing abroad, nor will we attach any political conditions.
In response to the doubts of the Chinese ambassador to Sri Lanka about the control of the Hambantota port, the Sri Lankan side made it clear that the port is completely owned by them and operates safely as other ports in China.
After the turmoil subsides, Chinese companies will continue to work with Sri Lanka to ensure the normal operation of the port. As for why Sri Lanka has given up on "reclaiming" the port, there is no need to go into details.
After the China-Sri Lanka turmoil, the two sides continued to cooperate, and the Hambantota Port is currently running smoothly. In order to prevent the spread of the epidemic, port employees are fully engaged in epidemic prevention and control.
According to port staff, they have adopted stricter anti-epidemic measures than Sri Lanka**. Employees have been vaccinated and are required to take precautions for those on board, and port personnel are required to minimize contact with ship personnel as much as possible.
In addition, customers are required to wear masks and have their body temperature checked when entering the port area to reduce contact with port employees.
In addition, Chinese companies have also provided special transportation for their employees to prevent them from contracting the virus through public transportation during their commute to work, which in turn can spread the virus to the port area.
Under the strict epidemic prevention measures at the Hambantota Port, the port area is operating normally. Ro-Ro throughput reached 63,000 vehicles in April 2021, up 46% year-over-year and a record monthly high.
The total cargo throughput of the port reached 828,000 tons, an increase of 186% compared to the same period last year. Data for August 2021 also shows that Hambantota Port saw a year-on-year increase of more than 180% in cargo volume in the first half of the year.
In December 2021, Sri Lankan Prime Minister Mahinda Rajapaksa and a number of cabinet ministers visited Hambantota Port and personally held an unveiling ceremony for the port to exceed 500,000 throughput.
In addition, Mahinda also visited the bonded logistics park, which is still under construction, to lay the foundation stone for the bonded warehouse. Sri Lanka is very satisfied with the operational results of the Hambantota Port, and the country's Foreign Minister Perris spoke during the visit, expecting the Hambantota Port to continue to vigorously promote investment attraction and green development, promote the economic transformation of the southern region of the country, and drive local economic prosperity through the Hambantota Port.
As a Sino-Sri Lankan cooperative project, the Hambantota Port is undoubtedly a model of mutual benefit and win-win results. For Sri Lanka, the operation of this port has not only boosted the local economy, created a large number of jobs, and improved the living standards of the people; At the same time, for China, it is"The Belt and Road Initiative"An important node in the strategy is an important barrier to ensure China's energy security and security.
While there may be some noise along the way, it's clear that such a project won't be interrupted easily. We firmly believe that the cooperation between China and Sri Lanka will continue to deepen, and the friendship between the two sides due to the Hambantota Port will be further consolidated and deepened, bringing more benefits to the two countries.