Japan beating China in race for deep-sea port in Bangladesh

Japan is beating out China in a race to build Bangladesh’s first deep-sea port as the region’s powers jostle for a foothold in the Indian Ocean, reports Bloomberg.
Construction of the 18-meter-deep port at Matarbari on Bangladesh’s southeast coast is set to start by January, Japan International Cooperation Agency said in an e-mailed response to questions from Bloomberg News. That’s bad news for a stalled China plan to build a port about 25 kilometers (15 miles) away.
“I’d imagine there’s only room for one port,” said Krispen Atkinson, a maritime analyst at IHS Inc., citing the cost to build railway lines and approach channels. “There are probably political reasons behind it as well. If you’re looking to build a port and want Western support as well, would a port financed by China be the favored option?”
The deal would mark a setback for China in South Asia, where it’s seeking to establish economic and military ties in a region that carries about 80 per cent of its oil imports. The Bay of Bengal, a body of water bigger than Mexico, lies at the heart of an area where China, Japan and India are investing billions of dollars to secure economic gains for decades to come.
“There’s a remarkable scramble going on,” said David Brewster, a visiting fellow at the Australian National University in Canberra, who called the bay a “twin” to the South China Sea. “The Japanese clearly see themselves in competition with China, and control over ports is seen as important. I expect the Japanese are very happy about this.”
Bangladesh’s government confirmed that work on the Matarbari port is scheduled to start early in 2016, while saying talks on the China-backed port at Sonadia island are still underway.
Bangladesh hasn’t built a new seaport since independence in 1971. It’s wanted a deepwater one for more than a decade as the country turned into the world’s second-biggest exporter of garments, which account for 15 per cent of gross national product.
Waters surrounding Bangladesh’s two main ports—Chittagong and Mongla—are so shallow that vessels have to wait for an incoming tide to berth and an outgoing one to leave. Bigger ships currently need to transfer their loads to smaller vessels. The longer turnaround can cost an extra $15,000 per day, making Chittagong several times pricier than ports in neighboring countries.
The Matarbari port, at 18 meters (59 feet), would be deep enough to host the largest container vessels, according to IHS’s Atkinson. To pay for a bigger port, Bangladesh needs help. That’s where the region’s major powers come in.
While a Japanese company in 2009 completed studies for the Bangladesh government for a port at Sonadia, Bangladesh Prime Minister Sheikh Hasina initially sought help to build it from China, which she once called the “most dependable and consistent friend of Bangladesh.” Since at least 2012, China has publicly backed the Sonadia project.
Newspapers speculated that the deal would be clinched when Hasina visited Beijing last year. Yet it never happened.
“Although the Sonadia deepwater port project failed to get signed, both sides expressed willingness to have further negotiations,” Chinese state media reported at the time. Months later, a member of her cabinet revealed a key reason for the delay.
“Some countries, including India and the United States, are against the Chinese involvement,” Planning Minister A.H.M. Mustafa Kamal told reporters in January, according to a Dhaka-based newspaper. The government is rethinking Sonadia since Matarbari is only 25 kilometers away, he said.

Japan beating China in race for deep-sea port in Bangladesh

Japan is beating out China in a race to build Bangladeshs first deep-sea port as the regions powers jostle for a foothold in the Indian Ocean, reports Bloomberg. Construction of the 18-meter-deep port at Matarbari on Bangladeshs southeast coast is set to start by January, Japan International Cooperation Agency said in an e-mailed response to questions from Bloomberg News. Thats bad news for a stalled China plan to build a port about 25 kilometers (15 miles) away. Id imagine theres only room for one port, said Krispen Atkinson, a maritime analyst at IHS Inc., citing the cost to build railway lines and approach channels. There are probably political reasons behind it as well. If youre looking to build a port and want Western support as well, would a port financed by China be the favored option? The deal would mark a setback for China in South Asia, where its seeking to establish economic and military ties in a region that carries about 80 per cent of its oil imports. The Bay of Bengal, a body of water bigger than Mexico, lies at the heart of an area where China, Japan and India are investing billions of dollars to secure economic gains for decades to come. Theres a remarkable scramble going on, said David Brewster, a visiting fellow at the Australian National University in Canberra, who called the bay a twin to the South China Sea. The Japanese clearly see themselves in competition with China, and control over ports is seen as important. I expect the Japanese are very happy about this. Bangladeshs government confirmed that work on the Matarbari port is scheduled to start early in 2016, while saying talks on the China-backed port at Sonadia island are still underway. Bangladesh hasnt built a new seaport since independence in 1971. Its wanted a deepwater one for more than a decade as the country turned into the worlds second-biggest exporter of garments, which account for 15 per cent of gross national product. Waters surrounding Bangladeshs two main portsChittagong and Monglaare so shallow that vessels have to wait for an incoming tide to berth and an outgoing one to leave. Bigger ships currently need to transfer their loads to smaller vessels. The longer turnaround can cost an extra $15,000 per day, making Chittagong several times pricier than ports in neighboring countries. The Matarbari port, at 18 meters (59 feet), would be deep enough to host the largest container vessels, according to IHSs Atkinson. To pay for a bigger port, Bangladesh needs help. Thats where the regions major powers come in. While a Japanese company in 2009 completed studies for the Bangladesh government for a port at Sonadia, Bangladesh Prime Minister Sheikh Hasina initially sought help to build it from China, which she once called the most dependable and consistent friend of Bangladesh. Since at least 2012, China has publicly backed the Sonadia project. Newspapers speculated that the deal would be clinched when Hasina visited Beijing last year. Yet it never happened. Although the Sonadia deepwater port project failed to get signed, both sides expressed willingness to have further negotiations, Chinese state media reported at the time. Months later, a member of her cabinet revealed a key reason for the delay. Some countries, including India and the United States, are against the Chinese involvement, Planning Minister A.H.M. Mustafa Kamal told reporters in January, according to a Dhaka-based newspaper. The government is rethinking Sonadia since Matarbari is only 25 kilometers away, he said.