South harbour container terminal deal sealed
US $ 500 million investment:
Hemanthi Guruge
The Board of Investment and the Sri Lanka Ports Authority have signed
an agreement with Colombo International Container Terminals Limited to
develop and operate the Colombo South Container Terminal. The total
investment for the project is Rs 50 billion (US $ 500 million). The
China Merchant Holdings will invest 55 percent of the cost while Aitken
Spence PlC will hold 30 percent and Sri Lanka Ports Authority 15
percent.
|
Investors of the US$ 500 million Colombo South Container
Terminal receiving the BOI agreement at the signing ceremony
yesterday. From Left: Aitken Spence PLC Deputy Chairman and CEO
J M S Brito, China Merchant Holdings Deputy Managing Director
Nelson Liu and BOI Acting Chairman and Director General Eshana
de Silva, Sri Lanka Ports Authority Chairman Priyath Bandu
Wickrama and BOI Board Member Anura Jayasinghe. Picture by
Sumanachandra Ariyawansa |
Sri Lanka Ports Authority Chairman Dr Priyath Bandu Wickrama told
Daily News Business the terminal comprises a total quay length of 1.2 km
and it will be completed in two stages.
“We will start operations after the completion of the first 600
metres,” he said.
“The entire project is expected to be completed in 14 months. With
the development of Sri Lanka as a maritime hub we need to expand our
capacity. We also can give more facilities for investors to come and
invest,” Wickrema said.
With the implementation of this container terminal development
project, Sri Lanka will gain economic benefits such as increased
container handling capacity of the port, accommodation for the latest
generation of large container ships, guarantee fast turnaround of
vessels and training of Sri Lankan staff on latest technology. This will
also increase the inflow of foreign exchange to the country from
container services.
Around 1,500 direct employment opportunities and a large number of
indirect employment opportunities will be created after commencing the
Colombo South Container Terminal.
The project will promote economic growth by improving Sri Lanka’s
competitiveness in the port sector by expanding Colombo Port and
facilitate economic growth by enhancing national competitiveness in
international trade via lower transport costs and faster delivery times.
Container-Handling capacity will be increased by 7.2 million TEUs on
completion of all three terminals in the Phase-one of the project.
The development of the Colombo South Harbour is being implemented
under President Mahinda Rajapaksa’s vision of making Sri Lanka a
shipping hub in the Asian region.
The agreement for one of the largest Foreign Direct Investments will
strengthen Colombo’s status as the premier shipping hub of South Asia
into the 21st century. Construction of the container terminal will
commence in December this year. |
