Tuesday, December 27, 2011


The Indian Ocean Frontier in the evolving Security Architecture in South Asia

 

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Prof. Gamini Keerawella,

Senior Professor of History, University of Peradeniya

Historical Backdrop

Since the birth of maritime civilizations in the ‘ancient orient’, the Indian Ocean had played a crucial role in shaping the historical development in the broader Indian Ocean region. The unique geo-strategic form of the Indian Ocean, being a huge bay surrounded on three sides by a landmass and islands and its regular cross-oceanic monsoon winds, made it a mode of connectivity, a huge moat of security, an infinite supplier of food and occasionally a battleground in the struggle for political and economic hegemony of the maritime centers of civilization spotted around its land frontier and in littoral islands from the dawn of history.

The political and strategic conditions in the Indian Ocean had undergone a crucial change with the arrival of the Portuguese Caravels at the turn of the 15th century. The Portuguese naval entry into the Indian Ocean heralded the colonial phase in the region and the control of the Indian Ocean remained the basis of European colonial domination. The British emerged as the foremost naval and colonial power in the struggle for the mastery of the Eastern seas in the mid 18th century and the Indian Ocean practically became a British lake thereafter. Hegemonic stability based on British naval supremacy and the ‘pax-Britannica’ in its East -of-Suez strategy prevailed in the Indian Ocean until the outbreak of World War II.

In the context of the changed configuration of power in world politics after World War II, the British withdrawal from the Indian Ocean in the period 1945-68 paved the way for superpower naval rivalry in the Indian Ocean in the Cold War context. In the background of past colonial experiences, the changed politico-strategic situation in the Indian Ocean after 1945 linked with the Cold-war competition of the Superpowers was viewed by the regional states that emerged with the process of de-colonization as a serious security concern. The multiple linkages between superpower naval rivalry and the conflict patterns in the region remained the conspicuous feature in the Indian Ocean during the Cold War, but the regional multi-balance of forces generated by the Cold War brought relative stability to the regional sub-systems in the Indian Ocean region despite military facts, puppet governments and proxy wars.

The strategic conditions of the Indian Ocean are once again experiencing a process of change with the end of the Cold War. The dismantling of strategic regional linkages of the super powers that were conceived in the Cold-War context and the reshaping of the strategic relationships of regional powers with extra-regional powers in the post-Cold war environment marked the shift. The emergence of Asian growth centers, the advances in blue water naval and other power projection capabilities of the regional powers, the rapid changes in military technology linked with RMA (Revolution in Military Affairs) and the strengthening of the process associated with Globalization have ushered a new strategic environment and new maritime security concerns and threats in the Indian Ocean. It is in this backdrop that the significance of the Indian Ocean frontier of the evolving security architecture in South Asia needs to be understood.

Geo-political factors of South Asia with the Indian Ocean frontier

In the Indian Ocean basin, the South Asian subcontinent appears most conspicuous due to its central location linking the Eastern and Western flanks of the ocean. As a result, the Indian Ocean invariably set a crucial parameter in South Asian security. As Philip Darby pointed out, in the east-of –Suez naval defense strategy of the British, India had been the keystone of the arch of defense in the Indian Ocean. By the same token, viewing conversely, especially in the evolving politico-strategic environment in the post-Cold War global and regional context, without bringing the Indian Ocean frontier as a key consideration, the totality of the security of South Asia cannot be properly understood.

India claims the second largest population, the fourth largest military establishment and seventh largest territory in the World. The massive Indian naval development in the last two decades and acquisition of deeper blue water naval reach is a crucial factor that brought the Indian Ocean frontier into the center of South Asian security projections more directly. The implications and responses of the regional and extra-regional powers to the Indian Naval growth make the Indian Ocean frontier a key aspect of the South Asian security architecture.

Evolving post-Cold War context of Security architecture

The importance of the Indian Ocean frontier in South Asian security has been brought into focus by certain developments in post-Cold War politico-strategic developments. These developments are vital to identify internal and external dynamics relating to the ‘South Asian security complex’, the term used by Barry Buzan to analyze "relative intensity of security relations that lead to distinctive regional pattern shape by both the distribution of power and historical relations of amity and enmity".

The end of the Cold War did not bring sudden drastic changes in the security dynamics of South Asia. In the changed global environment, however, subtle but decisive transformation in the South Asian security complex is clearly underway. It is moving from the earlier asymmetrical bi-polar conflict formation to a new configuration based on the uni-polar hegemony of India. Some of these changes are not directly related to the end of the Cold war. The continued economic growth in the last two decades has made India the new growth center of Asia, following China. The relative depth of the institutional basis of the Indian state and the vibrant democratic political process has moved India steadily from a ‘weak’ to a ‘strong’ state. At the same time, the continuous internal crisis in Pakistan undermined its ability to maintain even asymmetrical bi-polarity vis-à-vis India in the South Asian security complex. India’s continuous economic growth and rapid advances in her power projection capability have expanded its defense and security parameters to cover the wider Indian Ocean and global space. The new and intimate strategic relationship between India and the United States is reflective of India’s enhanced position in the new constellation of global powers. All these factors, including India’s lead in the IT industry, the sophistication in military related IT technology, the acquisition of state-of the art weapons systems (Air and Naval), its deeper naval reach and punch resulted in gradually transforming the South Asian security complex. In this context, India no loner remains confined to South Asia. That is clearly reflected in its recent foreign policy postures and behaviour and India’s ‘look east’ policy comes in this context. What would be the broader political and strategic implications of India’s economic growth, rising military capability and nuclear tests and also reactions of other key players? It is obvious that the United States and China are compelled to take India seriously as a factor to be reckoned with and as Barry Buzan observed "India could be an ally or opponent of both".

China’s String of Pearls’ Strategy

The post-Cold War developments in the Indian Ocean must also be taken into account in tracing the importance of the Indian Ocean frontier for the emerging South Asian security architecture. Since the disintegration of the Soviet Union, the United States with its up-graded Diego Garcia base remains the main extra-regional naval power in the Indian Ocean. Nevertheless, the Indian Ocean is not moving towards a single-power hegemonic stability based on US naval power. In addition to India, some other regional and extra-regional powers including Thailand, Indonesia, Australia, Iran, South Africa and more importantly China and Japan have emerged as powers with Indian Ocean blue water capacity. The most important development, with serious implications, would be the increasing entry of the Chinese Navy into the Indian Ocean with its phenomenal economic growth. Today, China claims the world’s second largest GDP surpassing Japan and comes forward to influence the reshaping of global commerce. China is the world’s third largest oil market, following the United States and Japan. It is also the world’s largest consumer of iron ore, surpassing even Japan. WTO rates China as the fourth largest merchandise trader. China’s increasing naval presence is manifested in its ‘string of pearls’ strategy’. It includes China’s port projects in Gwadar in Pakistan, Hambantota in Sri Lanka, Chittagong in Bangladesh, Laem Chabang in Myanmar and Sihanoukville in Campuchia. China always remains a factor in South Asian regional security dynamics. The advances in economic and military spears of both powers have changed the parameters of their operation. The Indian blue water naval reach and punch and China’s ‘string of Pearls strategy’ bring the Indian Ocean dynamics more prominently into the South Asian security architecture. The changes in Japan’s foreign policy after 1991 which emphasized enhanced regional role should also be taken into account. At the ASEAN Pre-Ministerial Conference in 1991 Japanese Foreign Minister Nakayama proposed a security dialogue among regional countries on a multi-lateral setting. The multi-tiered approach of the Nakayama proposal in effect indicated the involvement in promoting multilateral regional security arrangements. It expected to widen Japan’s security parameters incorporating the wider Indian Ocean region by identifying different levels and types of defensive cooperation and coordination at bi-lateral, multi-lateral and sub-regional levels. In the 1990s, Japan extended its new political-diplomatic initiatives with direct involvement in conflict-management and peace building activities in Afghanistan, East Timor, war-torn Aceh in Indonesia, and Southern Mindanao in the Philippines. Accordingly, in an address at the Tokyo Press Club in December 2002, Akashi referred to ‘a new phase of Japanese diplomacy’ in Asia. In addition, the ‘China factor’ in Japan’s foreign policy enhanced the importance of South Asia in its foreign and defense policy projections. In this context, strategic relationship among the United States, China, India and Japan remains an important factor in the Indian Ocean.

It is also important to view these developments against the backdrop of changes brought about by the process of Globalization and the changed perception of security with new threats and vulnerabilities. In the face of an intense global flow of goods, services and finance and other forces set in motion by the Globalization, ‘hard politics’ is increasingly losing its earlier vigour as states are now more interested in wealth acquisition through economic liberalization and trade. At the same time, with the thaw of Cold War mind-set, the narrow definition of security which focuses mainly on territorial integrity from external threats is found to be inadequate in the face of new threat scenarios.

Continued on next Wednesday

Port volumes up

 

The number of container vessels calling on Sri Lanka increased by 7 percent during the first ten months of this year to 3,615 from 3,379 a year earlier, latest data released by the Central Bank showed.

The total volume of cargo handled during this ten month period amounted to 54.51 million MT, up 6.5 percent from 51.18 million MT a year ago.

The total number of containers handled increased by 2 percent to 3.52 million from 3.45 million a year earlier while transshipment stayed flat at around 2.58 million containers.

Wednesday, December 21, 2011


Daily News Online

Aviation sector investments rise

Private sector to pump in US $ 263 m:
Private investments in Sri Lanka’s aviation sector is likely to rise to US $ 263 million next year. This figure is expected to increase to US $ 2.3 billion between 2017 and 2020.
One of the main reasons for this surge of interest is the construction of the second international airport in Mattala Hambantota. The construction on the $ 209 million first phase of the airport is expected to be completed by end 2013.
The new airport is being built to be compatible to accommodate the latest Airbus A380 aircraft and has been designed according to recommendations of the International Civil Aviation Organization. The airport is designed to facilitate for over 800 foreign passengers at peak hours.
Mechanical Repair and Overhaul (MRO) will be one of the biggest investments that will be taking place in Mattala. In addition several pilot training schools too are expected.
The foundation for the airport hotel too has been laid.
The Mattala airport will focuses 60 percent on cargo movements and this will help to ease congestion in Colombo. In addition exporters in the Southern and Eastern Provinces could use the new airport which will save them of transport as well and they will be able to save on the post harvest loss. There was an increased demand for both cargo and passenger movements this year which saw a 24% leap from the previous year. The aviation sector also saw US $ 16.7 million being invested in 2010.
Airport and Aviation Authority Chairman Prasanna Wickramasuriya said already several airlines have decided to include Mattala from 2013 and this will help the aviation sector developments in a big way.
Wickramasuriya also said private jet movements too have seen a significant increase and they have decided to convert the Ratmalana Airport to a city airport.
The old catering building at the Colombo Airport has been converted to a domestic terminal and this will be opened next year allowing passengers to take immediate domestic connections out of Colombo or international connections from Colombo.
In addition, the increase of tourist arrivals too has created opportunities in the aviation sector. Many new airlines have included Colombo in their radar while the airlines that are flying to Colombo too have increased frequencies.
While SriLankan Airlines is increasing their air taxi destinations a sea plane landing facility too is expected to be opened next year in Ja-ela

Tuesday, December 20, 2011

JCT handles first 10,000TEU container vessel to call on Lanka

 

Making a yet another significant landmark in the container handling history of Sri Lanka, the state-owned Jaye Container Terminal (JCT) received on Monday, December 19, 2011 a 10,000 TEU class Container Carrier, "APL Chongqing", operated by APL, the container shipping arm of the Singapore-based global transportation and logistics group, Neptune Orient Lines (NOL), the Sri Lanka Ports Authority (SLPA) announced yesterday.

Christened in early December this year, APL Chongqing and APL Gwangyang, were the first two new-builds to be received by APL from ship builder, Hyundai Heavy Industries, Korea, among an order of thirty-two (32) similar or larger vessels ordered. These two vessels have been deployed on the Far East-Europe South China Express loop (SCX). APL is the world’s fifth largest container shipping line generating a revenue of USD 8.3 billion in 2010. APL operates well over eighty (80) weekly services reaching over 25,000 locations in 140 countries.

When Sri Lanka opened its door to welcome foreign investment in 1992, Trident Shipping Agencies Pvt Ltd (forerunner of APL Lanka) was the first foreign-local joint venture shipping agency company to receive Board of Investment (BOI) approval. In fact, it has been registered in the annals of container shipping history in Sri Lanka that Colombo began container operations with APL, as far back as 1973 on a very small scale. The first vessel President Tylerwas berthed at QEQ in December 1973 and brought nine laden import containers that were discharged using ship’s gear. 

Since then, APL has been a loyal and prominent customer of SLPA.

APL arrived at a decision in early 2009 to exclusively patronize SLPA terminals. Their decision, according to them, was based on the productivity and efficiency gains achieved at JCT, combined with the customer oriented outlook of the SLPA management. Marking the successful culmination of the long standing and unfailing confidence in SLPA, last year APL christened one of its brand new Container Vessels as "APL Sri Lanka" and deployed it into their China India Express (CIX) service which touches JCT on its west-bound voyage.

 In April this year, demonstrating its commitment to the Sri Lankan maritime community and in a bid to tap into the country’s pool of capable and well-qualified graduates, APL entered into an agreement with SLPA’s Mahapola Training Institute (MPTI) to train 20 new seafarers from the Institute annually on board its vessels. Significantly, the first marine cadet officer from MPTI will join the brand new 10,000 TEU  "APL Chongqing" on her maiden call from Colombo.

 In celebration of the significance of this historic landmark event to JCT, SLPA and to Sri Lanka at large, a plaque exchange ceremony was held on board the vessel "APL Chongqing" on her maiden voyage at JCT/SLPA, on the 20th of December, 2011. Plaques were exchanged between SLPA upper echelon comprising Chairman, Dr. Priyath B. Wickrama, Managing Director, Capt. Nihal Keppetipola, and the Master of the Vessel Capt. Ong Ming Foo in the presence of APL top brass including Chairman, Mr. Arthur Senanayake, Managing Director, Mr. Micky Sim and other senior SLPA and APL officials and customers.

Monday, December 19, 2011

Indian ports not deep enoughIndian ports not deep enough

* But Lanka would have to create
synergies with giant neighbour



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Although a late starter in port development, Sri Lanka may have nothing to fear from India’s port expansion plans as the subcontinent does not have adequate depths to support the new larger vessels. However, it would be in Sri Lanka’s, and India’s, best interest to create synergies to capitalise on the new global economic dynamism where Asia is expected to lead the growth.

The International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse said Indian ports were expanding whilst productivity improvements were also visible.

"But they have a problem with draught (vertical distance between the waterline and keel of a ship). They do not have the depths to support the new generation of vessels. Of course they could make their long approaches deeper but that would be too costly," he said in response to a query raised by The Island Financial Review.

Over 70 percent of TEUs (containers) handled at Sri Lanka’s highly congested port of Colombo is transshipment to and from India and Naruse believes it is in Sri Lanka’s best interest, where water depths are not an issue, to create synergies with India. "India’s growth would benefit Sri Lanka," the Japan based Naruse said.

Shipping experts have constantly warned that a delay in developing port capacity in Sri Lanka would result in the loss of business as Indian ports have had a head start.

"I do not know much about the ports in Sri Lanka but I would say authorities would have to be conscious about the environment and safety issues going forward," Naruse said.

He was in Sri Lanka to announce that Colombo would be hosting the IAPH’s 12th Asia/Oceania Regional Meeting and Port Forum next March.

South Asia is expected to record the highest growth in terms of container volumes over the next few year starting from 11.1 percent this year and 8.4 percent in 2012, but as far as global container volumes are concerned less than 4 percent in handled by South Asian ports.

Warning shot...

India is rapidly developing its ports and Sri Lanka would have to compete on efficiency, service standards and cheaper rates.

Capt. Subhash Kumar, Chairman Chennai Port Trust, India, addressing a forum in Colombo in February 2010 said container volumes handled in Indian ports had increased significantly in 2009 despite the global economic crisis, with Chennai’s volumes increasing 27 percent, as a result of rapid developments to its ports.

"All ports in India are going through a phase of rapid development. Rail and road networks have been strengthened, channels and berths in almost every port have been deepened and new berths have been added," Capt. Kumar said.

He said the ports were being modified to accommodate the new class of large super-vessels that had begun to take to the seas.

"We have a target of increase volumes from 750,000 million tonnes to 1,500,000 million tonnes in two to three years’ time," Capt. Kumar said.

"Everybody knows that Sri Lanka is mainly surviving on Indian transshipment. Many ask me whether these developments to Indian ports would impact Sri Lanka. Yes it would. We would have to compete on efficiency, parameters of service and cheaper rates."

Capt. Kumar was quick to say that volumes are expected to increase for the entire region and although India is expecting to see an increase in volumes handled by its ports, it did not mean that Sri Lanka would lose out.

"Volumes to the region are expected to double and this would benefit everybody. We (Bangladesh, India and Sri Lanka) must be united, as it is said, united we stand, divided we fall (or sink as per shipping terms). We must be united in creating a hub in the region around India," he said.

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Not deep enough? International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse at the press conference in Colombo.

Pic by Gamini Munasinghe.

* But Lanka would have to create
synergies with giant neighbour



article_image
Although a late starter in port development, Sri Lanka may have nothing to fear from India’s port expansion plans as the subcontinent does not have adequate depths to support the new larger vessels. However, it would be in Sri Lanka’s, and India’s, best interest to create synergies to capitalise on the new global economic dynamism where Asia is expected to lead the growth.

The International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse said Indian ports were expanding whilst productivity improvements were also visible.

"But they have a problem with draught (vertical distance between the waterline and keel of a ship). They do not have the depths to support the new generation of vessels. Of course they could make their long approaches deeper but that would be too costly," he said in response to a query raised by The Island Financial Review.

Over 70 percent of TEUs (containers) handled at Sri Lanka’s highly congested port of Colombo is transshipment to and from India and Naruse believes it is in Sri Lanka’s best interest, where water depths are not an issue, to create synergies with India. "India’s growth would benefit Sri Lanka," the Japan based Naruse said.

Shipping experts have constantly warned that a delay in developing port capacity in Sri Lanka would result in the loss of business as Indian ports have had a head start.

"I do not know much about the ports in Sri Lanka but I would say authorities would have to be conscious about the environment and safety issues going forward," Naruse said.

He was in Sri Lanka to announce that Colombo would be hosting the IAPH’s 12th Asia/Oceania Regional Meeting and Port Forum next March.

South Asia is expected to record the highest growth in terms of container volumes over the next few year starting from 11.1 percent this year and 8.4 percent in 2012, but as far as global container volumes are concerned less than 4 percent in handled by South Asian ports.

Warning shot...

India is rapidly developing its ports and Sri Lanka would have to compete on efficiency, service standards and cheaper rates.

Capt. Subhash Kumar, Chairman Chennai Port Trust, India, addressing a forum in Colombo in February 2010 said container volumes handled in Indian ports had increased significantly in 2009 despite the global economic crisis, with Chennai’s volumes increasing 27 percent, as a result of rapid developments to its ports.

"All ports in India are going through a phase of rapid development. Rail and road networks have been strengthened, channels and berths in almost every port have been deepened and new berths have been added," Capt. Kumar said.

He said the ports were being modified to accommodate the new class of large super-vessels that had begun to take to the seas.

"We have a target of increase volumes from 750,000 million tonnes to 1,500,000 million tonnes in two to three years’ time," Capt. Kumar said.

"Everybody knows that Sri Lanka is mainly surviving on Indian transshipment. Many ask me whether these developments to Indian ports would impact Sri Lanka. Yes it would. We would have to compete on efficiency, parameters of service and cheaper rates."

Capt. Kumar was quick to say that volumes are expected to increase for the entire region and although India is expecting to see an increase in volumes handled by its ports, it did not mean that Sri Lanka would lose out.

"Volumes to the region are expected to double and this would benefit everybody. We (Bangladesh, India and Sri Lanka) must be united, as it is said, united we stand, divided we fall (or sink as per shipping terms). We must be united in creating a hub in the region around India," he said.

pic

Not deep enough? International Association of Ports and Harbours (IAPH) Secretary General Susumu Naruse at the press conference in Colombo.

Pic by Gamini Munasinghe.
Third container terminal opens in 2016:

Colombo Port to increase capacityDaily News Online

Sri Lanka will be able to cater to the South Asian needs in handling larger vessels with the construction of the Colombo Port’s third container terminal which is scheduled to be completed by 2016. The inauguration of the Colombo Port third container terminal was held on Friday and this is a long overdue project as capacity expansion was urgently needed to remain competitive in the region.

Night view of Colombo Harbour
The US $ 500 million project will be completed in three stages and scheduled to be total operative by 2016, Colombo Shipping Academy CEO Rohan Masakorala told Daily News Business.
With the terminal Sri Lanka will have the capacity to entertain largest triple E class vessels which did not enter the port in the past. The expansion will enable the harbour basin to accommodate and handle 18 metre draft, he said.
The 600 metre terminal is a boost to the country’s shipping industry as Sri Lanka will be the only port in South Asia to handle large vessels. The first stage is expected to be completed by 2013.
The Colombo Port will be able to cater to larger transshipments with 10,000 TEUs capacity and the container handling capacity is expected to go up from 4.9 million to 13 million.
The project is carried out as a PPP venture and the expansion will see more liners calling the port.
The project will provide the port more capacity to market and it will have a positive impact on the local trade. As there is better connectivity opportunity, the trading community will benefit, he said.
With the expansion handling and ship capacity will increase while also creating employment opportunities and value addition. The project augurs well for the country to become the hub in the region. There will also be a 400 metre berth constructed to increase capacity in a bid to address the immediate needs in the port capacity to be completed by 2013 at the Colombo South harbour terminal, Masakorala said.