Identifier
Created
Classification
Origin
07COLOMBO50
2007-01-11 08:52:00
UNCLASSIFIED
Embassy Colombo
Cable title:  

PROPOSED TRANSHIPMENT PORT IN MALDIVES

Tags:  KTDM EWWT ECON EINV CE 
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VZCZCXYZ0007
RR RUEHWEB

DE RUEHLM #0050 0110852
ZNR UUUUU ZZH
R 110852Z JAN 07
FM AMEMBASSY COLOMBO
TO RUCPCIM/CIMS NTDB WASHDC
INFO RUCPDOC/USDOC WASHDC
RUEHC/SECSTATE WASHDC 5101
RUEHNE/AMEMBASSY NEW DELHI 0453
RUEHKA/AMEMBASSY DHAKA 9763
RUEHIL/AMEMBASSY ISLAMABAD 6701
RUEHKT/AMEMBASSY KATHMANDU 4767
RUEHKP/AMCONSUL KARACHI 2102
RUEHCG/AMCONSUL CHENNAI 7266
RHHMUNA/USCINCPAC HONOLULU HI
UNCLAS COLOMBO 000050 

SIPDIS

SIPDIS

STATE FOR SCA/INS AND DRL/IL LAUREN HOLT

MCC FOR S GROFF, D NASSIRY AND E BURKE

E.O. 12958: N/A
TAGS: KTDM EWWT ECON EINV CE
SUBJECT: PROPOSED TRANSHIPMENT PORT IN MALDIVES


UNCLAS COLOMBO 000050

SIPDIS

SIPDIS

STATE FOR SCA/INS AND DRL/IL LAUREN HOLT

MCC FOR S GROFF, D NASSIRY AND E BURKE

E.O. 12958: N/A
TAGS: KTDM EWWT ECON EINV CE
SUBJECT: PROPOSED TRANSHIPMENT PORT IN MALDIVES



1. Summary: Maldives is hoping to use its strategic location on
major shipping lanes in the Indian Ocean to build a transshipment
port. The first phase of the project to develop a container
terminal with a capacity of 1.2 million twenty foot equivalent units
(TEUs) annually is estimated to cost USD 400 million. A Kuwaiti
company is preparing a feasibility study. End Summary


2. The development of a transshipment port in the northern Maldives
targeting the rapidly growing transshipment traffic in the Indian
Ocean is one of the government's highest priorities. Maldives is
strategically located on major shipping lanes between the Middle
East and South/East Asia. The government's goal is to develop a
port that handles 1.2 million TEUs annually under the first phase of
the project, and to open nearby islands for industries and export
processing zones. The Government of the Republic Maldives (GoRM)
entered into a memorandum of understanding with a Kuwaiti investor
in May 2006, with the objective of developing the port. The
investor is currently carrying out a feasibility study.


3. The port is proposed to be developed in two phases and will
involve an investment of USD 400 million for first phase. The
second phase is expected to take the total investment to about USD 1
billion. However, given the small size of the Maldivian economy
(GDP is estimated at USD 950 million in 2006),private investment
will be essential to make it a reality.


4. According to Maldives government sources, the Kuwaiti company is
hoping to attract other investors to the project. The GoRM also
hopes to take equity in the project. The feasibility study is to be
submitted to the GoRM in mid 2007. If the GoRM approves the study
and investment proposals, the government hopes to enter into a build
operate transfer contract with the company. Construction is
expected to start in 2008.


5. For more information please contact:
Mr. Abdulla Salih
Deputy Minister
Ministry of Economic Development and Trade
Maldives
Email: asalih@trademin.gov.mv

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