Colombo Port expansion spurs growth

COLOMBO: The expansion of the Colombo Port will drastically enhance its container handling capacity and subsequent Foreign Direct Investments (FDI) in the ports sector is expected to increase by about US$ 800 million by 2024, Ports and Aviation Ministry sources said yesterday.

The Asian Development Bank will provide a financial grant of US$ 300 million for the expansion. The first phase is estimated to cost of US$ 615 million including the breakwater, dredging and construction of the first terminal.

The container-handling capacity will be increased from 3.3 million 20 foot containers (TEUs) in 2006, to 5.7 million TEUs by 2010 and eventually to 10.5 million TEUs. It will also add a new marine operations centre and will relocate an underwater oil pipeline and provide navigational aid.

The Colombo Port Expansion Project which will be launched as a Public-Private Partnership Project (PPP) will commence construction work with the private sector engaged in implementing the common user harbour infrastructure work such as dredging and breakwater construction sufficient to accommodate three new container terminals.

Senior Transport Specialist with ADB's South Asia Department, Prodyut Dutt said the Colombo Port is a natural transshipment hub for South Asia. In recent years, Colombo Port has lost market share in transshipment because it does not have the operating capacity or depth required to berth the latest generation container ships and the expansion will address this problem.

"The effort is to make Colombo port a hub of the South Asian port and the gateway to South Asian shipping.

The Government expanding the Southern Colombo terminal to enable deep-draft vessels to enter the Colombo port after 2010 and to be on par with international shipping trends," Port sources said.

The expansion of existing ports and the building of a new port at Hambantota are expected to boost the overall economic growth.