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External articles (30)

Sri Lanka in talks with India, Japan to build container terminal in Colombo

The government is looking to diversify away from dependence on the Chinese-operated port terminal in Colombo, and is in advanced talks with India and Japan. “A previous proposal for a terminal, with the state-run Sri Lanka Ports Authority (SLPA) owning a 15% stake and the remainder held by a consortium of firms from Japan, India and Sri Lanka was scuttled last year after a backlash from trade unions. Trade unions protested against the privatisation of state assets including those being developed by Chinese firms, a dispute that led to President Maithripala Sirisena sacking Prime Minister Ranil Wickremesinghe in October. Wickremesinghe was reinstated later after a court ruling.”

Source: TODAYonline

"The vulnerability to privatisation has increased"

Hindu Business Line reports that the although NDA government was unsuccessful in privatising a state-run firm, they “have sowed the seeds for a relatively trouble-free sale later on with the help of strategic divestment involving public sector undertaking (PSU) to PSU deals. (…) With its new owner not a PSU in the strict sense of the word, DCI has also lost its PSU and mini ratna status. This is not the case, though, with the other deals because ONGC, NBCC and PFC are owned by the government and hence HPCL, HSCC and REC will continue to be subjected to DPE norms. Yet, their vulnerability to privatisation has increased, government sources added.”

Source: @businessline

A New South Wales Upper House inquiry into the state's port privatisations

A New South Wales Upper House inquiry into the state's port privatisations finds that key aspects of the deals were kept secret from Parliament and the public. “Labor's Shadow Minister for Industry and Resources, Adam Searle, said the government had concealed the port deal “because they knew it would sell the Hunter [region] short. They knew people in the Hunter wouldn't like it, but they did it anyway because they wanted to maximise the sale price for the other ports which they privatised.”

Source: Newcastle Herald

FG hands over Warri port terminal to concessionaire

The Bureau of Public Enterprises has privatized Terminal B of the Warri Old Port to a private concessionaire, Ocean & Cargo Terminal Services Limited. Mr. Abudu Eroje, Deputy Secretary-General, Maritime Workers Union of Nigeria (MWUN) “commended the concession of the Warri Port. He said that when fully operational, the port would ease the persistent gridlock on roads leading to the Lagos ports.”

Source: Punch Newspapers

Privatization commission mulls at selling state owned corporations

The Kenya Port Authority will not be privatized, but other parastatal corporations are on the chopping block. This has drawn criticism. “Analysts argue that while privatization is the way to go, a fire sale shows desperation, will result in undervaluation with the taxpayer getting the short end of the stick. ‘Auctioneer mindset to sell the family silver and raise cash quick is not going to be productive in the long term or remunerative in the short term,’ Deepak Dave of Riverside Capital said.”

Source: YouTube

Ghana agrees to toe the IMF line after its “bailout programme” ends

Ghana agrees to toe the IMF line after its “bailout programme” ends. “As the country attempts to keep spending under the control, it is implementing policies to make it more attractive for private investors to participate in the development of roads, railways and ports, said [Finance Minister Ken Ofori-Atta].”

Source: www.bloomberg.com

Three state-owned major port trusts have saved Dredging Corporation of India Ltd from going into private hands

After plans are dropped to sell the government’s majority equity stake in Dredging Corporation of India (DCI), three ports look to invest in the company. “Three state-owned major port trusts have not only saved Dredging Corporation of India Ltd (DCI) from going into private hands, but are also set to give assured business to the public sector dredging contractor by reverting to the nomination method of awarding contracts. Earlier this month, Visakhapatnam Port Trust, Paradip Port Trust and New Mangalore Port Trust agreed to buy a controlling stake in DCI in a deal brokered by the Shipping Ministry.”

Source: @businessline