Following discussions between the Chinese President Xi Jinping, and President Mahinda Rajapaksa on 16 September 2014, China Merchants (Holdings) International Co., Ltd. (CMHI) and the government of Sri Lanka has signed two agreements in relation to the development of Phase II of the Hambantota Port Development Project.
An agreement on key terms in relation to the Supply, Operate and Transfer (SOT) of Phase II of the Hambantota Container Port Project was signed by President of CMHI Li Jianhong and the President of China Communications Construction Company Ltd. (CCCC) Chen Fenjian with the Chairman of the Sri Lanka Ports Authority Dr. Priyath Bandu Wickrama.
An agreement on the development of an international maritime center in Sri Lanka was executed by the Assistant General Manager of China Merchants Group Limited and the Managing Director of CMHI Hu Jianhua and Secretary of the Ministry of Highways, Ports and Shipping of Sri Lanka R.W.R. Pemasiri.
The Phase II of Hambantota Port has a total project cost of approximately US$ 601 million, to be equipped with 4 container berths (comprising two 100k-dwt berths and two 10k-dwt berths) on a 1,298m-shoreline, and with an annual design capacity of 2 million TEUs.
The parties involved will explore the feasibility of a series of investment projects surrounding the set-up of an international shipping center in Sri Lanka, balancing long-term development goals and near term benefits of Sri Lanka, with preparatory work of two preliminary projects initiating in the near future, including, firstly, the core functional area of the international shipping center with a proposed size of 60 hectares, to offer integrated bonded logistics operations and commercial services, such as bonded warehousing, export processing, entrepot trade, e-commerce distribution and exhibition services; and, secondly, an agglomeration of high-end maritime related services, with a proposed size of 20 hectares, providing a concentration of complimentary facilities and infrastructures supplementary to the international shipping center.