CMH to Purchase Aitken Spence share

Hemanthi Guruge

The China Merchant Holdings(CMH), engaged in the development and operation of the Colombo South International Container Terminal has given an approval to purchase 30 percent shareholding of Aitken Spence Plc.

The China Merchant Holdings had invested 55 percent of the cost and it has increased its stake up to 85 percent. Sri Lanka Ports Authority also has a 15 percent stake in Colombo South Container Terminal.

The total investment for the project is US $ 500 million. According to the Sri Lanka Ports Authority the terminal comprises a total quay length of 1.2 km and will be completed in two stages. Operation of the terminal will start after the completion of the first 600 metres.

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 the commencement of 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.