Is Hambantota harbour is an unsuccessful venture?

aliasjjj · 1 Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 10:43 am

aliasjjj

Senior Equity Analytic

Posts : 73
Equity Stars : 4828
Reputation : 0
Join date : 2011-06-21

Is Hambantota harbour is an unsuccessful Project? I remember earlier Lloyd's of London, the British insurance and reinsurance company has rejected maritime insurance related to Hambantota harbour.

Do you know the true situation of it ? Will this be able to enhance the SL Economy in future ?

Jiggysaurus

Jiggysaurus

Assistant Vice President - Equity Analytics

Posts : 962
Equity Stars : 6346
Reputation : 68
Join date : 2012-06-14

aliasjjj wrote:Is Hambantota harbour is an unsuccessful Project? I remember earlier Lloyd's of London, the British insurance and reinsurance company has rejected maritime insurance related to Hambantota harbour.

Do you know the true situation of it ? Will this be able to enhance the SL Economy in future ?

Why not? Harbors are very successful methods for our politicians to make money. Very soon the PM may build a harbor in Kandy while the Opposition Leader may build a harbor in Colombo 7. And don't forget the former general may build a harbor in Welikada. Millions for the politicians a few cents for the ordinary people.

Chinwi

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 8959
Reputation : 418
Join date : 2010-06-08
Location : Asia

What is the reason they refused insurance coverage ? I also wish to know.

Now about your main question. Frankly, for me it is difficult to find a clear answer at the moment . It may be a very long term project .

I once visited construction site of the Dubai airport; 4 years ago. It is not the current place where we land but a huge one build far away to DXB for future needs.. They say it is for next 20 years.
Still lot of people work there building the infrastructure, runway, electronics while the present airport is operating in very good and in modern condition.

TortoizePlus · 4 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:23 pm

TortoizePlus

Manager - Equity Analytics

Posts : 197
Equity Stars : 5111
Reputation : 14
Join date : 2011-02-05

Chinwi wrote:What is the reason they refused insurance coverage ? I also wish to know.

Now about your main question. Frankly, for me it is difficult to find a clear answer at the moment . It may be a very long term project .

I once visited construction site of the Dubai airport; 4 years ago. It is not the current place where we land but a huge one build far away to DXB for future needs.. They say it is for next 20 years.
Still lot of people work there building the infrastructure, runway, electronics while the present airport is operating in very good and in modern condition.

Although there are questions on curruption and all.. I belive that both harbour and the air port in H'thota are ideal projects. It takes sometime to see a result but will not be a waste...

Redbulls · 5 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:24 pm

Redbulls

Director - Equity Analytics

Posts : 6053
Equity Stars : 16066
Reputation : 770
Join date : 2012-02-14

Jiggysaurus wrote:

aliasjjj wrote:Is Hambantota harbour is an unsuccessful Project? I remember earlier Lloyd's of London, the British insurance and reinsurance company has rejected maritime insurance related to Hambantota harbour.

Do you know the true situation of it ? Will this be able to enhance the SL Economy in future ?

Why not? Harbors are very successful methods for our politicians to make money. Very soon the PM may build a harbor in Kandy while the Opposition Leader may build a harbor in Colombo 7. And don't forget the former general may build a harbor in Welikada. Millions for the politicians a few cents for the ordinary people.

Well said friend.

wiki · 6 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:29 pm

wiki

Assistant Vice President - Equity Analytics

Posts : 687
Equity Stars : 5702
Reputation : 41
Join date : 2011-02-03
Location : Colombo

H tota is good place for a harbor.. it is located in a major naval route.. but as usual a poorly managed project.

Last edited by wiki on Fri Jun 22, 2012 8:33 pm; edited 1 time in total

aliasjjj · 7 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:03 pm

aliasjjj

Senior Equity Analytic

Posts : 73
Equity Stars : 4828
Reputation : 0
Join date : 2011-06-21

Chinwi wrote:What is the reason they refused insurance coverage ? I also wish to know.

Now about your main question. Frankly, for me it is difficult to find a clear answer at the moment . It may be a very long term project .

I once visited construction site of the Dubai airport; 4 years ago. It is not the current place where we land but a huge one build far away to DXB for future needs.. They say it is for next 20 years.
Still lot of people work there building the infrastructure, runway, electronics while the present airport is operating in very good and in modern condition.

Loyd’s have stated that the situation of the harbor would encourage forming sand dunes due to the large amount of sand that deposits in the harbor daily. They also point out ships could get damaged due to the number of rocks that exist in the sea nearby and also point out that the surf is rough throughout the year in the area.
The government of Sri Lanka has asked the Chinese company which is carrying out constructions of the harbour to remove the large rock at the entrance to it. However, the Chinese company has pointed out that removal of the rock would endanger the whole Hambantota town. They have also pointed out that removal of the rock would cost about hundred times more than what was spent for the construction of the harbour.

This is an Old story .. Don't know about the Current Situation ..

UKboy · 8 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:12 pm

UKboy

Senior Vice President - Equity Analytics

Posts : 1943
Equity Stars : 7335
Reputation : 391
Join date : 2011-02-08
Location : Earth

Surely we are overly spending on this project but I hope eventually it will achieve the promised goals. Time scale well.. I’m not sure even the project managers know about it.

As far as I heard at the moment this port does not have sufficient depth to handle any medium to large scale cargo vessels. That could be the reason why all the major insurance companies are refusing to offer covers. Not too sure this is upto international standards either.

Not like containers vessels, a few meters of depth is enough to manoeuvre a vessel carries only vehicles. Normally they also don’t need massive gantry cranes. So that is probably why government tries to promote this harbour as a transit place for vehicles.

Market.Player · 9 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:44 pm

Market.Player

Senior Manager - Equity Analytics

Posts : 374
Equity Stars : 5121
Reputation : 22
Join date : 2011-08-14
Age : 58
Location : Thailand

Read the link -

http://www.kpmg.com/LK/en/IssuesAndInsights/ArticlesPublications/Pages/ChangingCity.aspx

Changing Cityscape - Real Estate Market Brief Issue II
Among the topics discussed in the report are the developments in the city of Hambantota, the first planned city project in Sri Lanka, a glance at price movements and trends in suburban property, valuation dynamics in real estate asset valuation and an overview of changes in the cityscape and recent tourism sector developments.

WildBear

WildBear

Assistant Vice President - Equity Analytics

Posts : 723
Equity Stars : 5552
Reputation : 65
Join date : 2011-07-02

Chinwi wrote:What is the reason they refused insurance coverage ? I also wish to know.

Now about your main question. Frankly, for me it is difficult to find a clear answer at the moment . It may be a very long term project .

I once visited construction site of the Dubai airport; 4 years ago. It is not the current place where we land but a huge one build far away to DXB for future needs.. They say it is for next 20 years.
Still lot of people work there building the infrastructure, runway, electronics while the present airport is operating in very good and in modern condition.

We are suffering to day because of previous governments failed to build infrastructure to meet the demand in future, including physical infrastructure like sea ports, air ports, highways and also human resources infrastructure I.e a quality workforce. I think in that sense it,s very prudent decisions to invest in those areas though it take considerable time to deliver results.

Whitebull

Whitebull

Assistant Vice President - Equity Analytics

Posts : 876
Equity Stars : 5390
Reputation : 33
Join date : 2012-05-15

What I think here also situation simillar to some peoples trading in CSE.They expect to get profit in few minutes or few hours.It is good if that happens but we have to understand the value of a long term investments.

If we open a shop in highly competitive area can we expect to get profit in few days time ? This harbour is also like that.Yes it is located in a naval route but ships are already using methods to fulfill their requirenments.So we have to do some promotional work to attract those ships.(I think there is some lacking in this part.It seems some authourities expect ships to come here just because there is a harbour.)

Even with promotions this will definitely take some time.We should not forget that we are competing with already properly functioning harbours.

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Is Hambantota harbour is an unsuccessful venture?

1 Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 10:43 am

aliasjjj

2 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 10:50 am

Jiggysaurus

3 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 12:36 pm

Chinwi

4 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:23 pm

TortoizePlus

5 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:24 pm

Redbulls

6 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 1:29 pm

wiki

7 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:03 pm

aliasjjj

8 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:12 pm

UKboy

9 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 2:44 pm

Market.Player

10 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 6:08 pm

WildBear

11 Re: Is Hambantota harbour is an unsuccessful venture? Fri Jun 22, 2012 7:27 pm

Whitebull

12 Re: Is Hambantota harbour is an unsuccessful venture?

Sponsored content

New topics