3 March 2021 08:54 am
The Cabinet of Ministers granted approval to develop the West Container Terminal (WCT) of Port of Colombo on build, operate and transfer (BOT) basis for a period of 35 years as a public-private partnership (PPP) with India’s largest terminal operator, Adani Ports and Special Economic Zone (APSEZ) Limited, and its local representative John Keells Holding PLC (JKH), with Sri Lanka Ports Authority (SLPA) taking a minority stake in the project.
On Monday, Ports and Shipping Minister Rohitha Abeygunawardena sought Cabinet approval for the proposal, based on recommendations of the Cabinet appointed negotiation committee.
Accordingly, Adani Ports and its local partner JKH are expected to hold 85 percent stake in the proposed public-private company and SLPA is expected to take up the remaining 15 percent in the company.
JKH has been in similar partnership with the leading shipping liner Maersk in operating the South Asia Gateway Terminals (SAGT) of Port of Colombo.
On February 2nd, the Cabinet of Ministers approved a proposal to develop the WCT as a PPP with SLPA and nominated parties of India and Japan, after the government decided to retain the full management of the East Container Terminal (ECT) with SLPA moving away from an earlier agreement with India and Japan to manage and develop ECT jointly.
The Cabinet appointed negotiation committee and a project committee presented the proposed BOT plan after evaluations, to the High Commission of India and the Embassy of Japan requesting them to nominate investors.
“The proposal presented by Adani Ports and Special Economic Zone Limited (APSEZ Consortium) has been approved by the Indian High Commission, the Government Information Department said.
However, Japan was yet to nominate an investor.
The WCT is expected to have a 1,400-metre quay wall, water depth of 20m, terminal area of about 64 hectares with annual capacity of 2.6 million TEUs. The development of WCT, which is yet to begin, is estimated to take around 2 years.