Reuters published on 23 May 2019 a story titled "Why Tanzania, China's $10 Billion Port Project Has Just Stalled."
China Merchants Holdings International signed a loan agreement for $10 billion in 2013 to construct a port complex at Bagamoyo that would surpass the port of Mombasa in neighboring Kenya. There was a ground-breaking ceremony in 2015 but construction has not yet started. After years of negotiation, there is not yet a legally binding agreement. The Tanzania side argues that the conditions are not commercially viable and is waiting for new talks to resume with the Chinese company.
This long anticipated and oft delayed project has the potential to change the trade economics of the eastern African coast but also demonstrates increasing African concerns that these huge infrastructure projects make commercial sense.
Showing posts with label China Merchants Port Holdings. Show all posts
Showing posts with label China Merchants Port Holdings. Show all posts
Monday, May 27, 2019
Thursday, February 28, 2019
Chinese and Dubai Companies Battle To Operate Djiboutian Port
Quartz Africa posted on 28 February 2019 an article titled "A Legal Tussle Over a Strategic African Port Sets Up a Challenge for China's Belt and Road Plan" by Abdi Latif Dahir.
Dubai's DP World until recently operated Djibouti's Doraleh Container Terminal. A year ago, Djibouti seized control of the port from DP World. China Merchants Port Holdings, the Hong Kong-based subsidiary of the state-owned conglomerate, China Merchants Group, held a 23.5 percent stake in the port and has been given increased operational authority by Djibouti over the port. The issue is now in a Hong Kong court but the dispute raises questions about the ultimate intentions of this Chinese company and control of the port.
Dubai's DP World until recently operated Djibouti's Doraleh Container Terminal. A year ago, Djibouti seized control of the port from DP World. China Merchants Port Holdings, the Hong Kong-based subsidiary of the state-owned conglomerate, China Merchants Group, held a 23.5 percent stake in the port and has been given increased operational authority by Djibouti over the port. The issue is now in a Hong Kong court but the dispute raises questions about the ultimate intentions of this Chinese company and control of the port.
Monday, February 25, 2019
China Tightens Grip on Djiboutian Port
The Wall Street Journal published on 21 February 2019 an article titled "China Tightens Grip on East African Port" by Costas Paris.
China Merchants Port Holdings is asserting control of operations at Djibouti's Doraleh Container Terminal. The Djiboutian government has repeatedly said it alone controls the Doraleh terminal and has told the United States it has no plans to cede control of its maritime assets to Chinese state port operators. All supplies for the U.S. military base in Djibouti come through the port, potentially putting them at risk.
China Merchants Port Holdings is asserting control of operations at Djibouti's Doraleh Container Terminal. The Djiboutian government has repeatedly said it alone controls the Doraleh terminal and has told the United States it has no plans to cede control of its maritime assets to Chinese state port operators. All supplies for the U.S. military base in Djibouti come through the port, potentially putting them at risk.
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