CWIT completes first full month of operations

• but early challenges emerge

Despite the dip in Port of Colombo’s primary business and the looming challenges, April was a significant month as the Colombo West International Terminal (CWIT) completed its first full month of operations, handling 12,438 TEUs. 

The Adani-JKH managed terminal, which commenced operations in late March, has handled a cumulative 15,990 TEUs by the end of April. CWIT, a public-private partnership involving Adani Ports and Special Economic Zone Ltd. (APSEZ), John Keells Holdings PLC, and the Sri Lanka Ports Authority (SLPA), officially announced the commencement of its operations around April 7th-8th.

As Sri Lanka’s first fully automated deepwater terminal, CWIT represents a significant investment of approximately $800 million. It features a 1,400-metre quay length and a 20-metre depth and is designed to handle an annual capacity of around 3.2 million TEUs. Phase 1 of the terminal is equipped with eight automated Ship-to-Shore (STS) gantry cranes and 18 fully automated Rail Mounted Gantry (ARMG) stacking cranes. The terminal is expected to significantly enhance Colombo Port’s capacity, ease existing congestion, and improve vessel turnaround times.

However, early operations at CWIT are reportedly facing some teething issues. Industry sources indicate that crane productivity at CWIT is currently lower compared to other established terminals in the Port of Colombo. Furthermore, CWIT is yet to secure any Terminal Service Agreements (TSAs) with major shipping lines. These agreements are crucial as they typically provide main lines with preferential rates in return for committed volumes.

“Because of the current tariff rates, there is no incentive for main lines to go there (CWIT),” an industry player commented. “Their strategy seems to be to handle low volumes initially, get the operational experience, and then go for agreements afterwards.”