Construction of the Colombo Port's Western Container Terminal (WCT) ceremonially commenced on Wednesday as a public-private partnership.
Adani Ports partners John Keells Holdings PLC and Sri Lankan Port Authority (SLPA) to develop the WCT of Colombo Port on a Build, Operate and Transfer (BOT) basis for a period of 35 years.
The BOT agreement worth more than USD 700 million is said to be the largest foreign investment ever in the port sector of Sri Lanka.
The Colombo Port is the most preferred regional hub for the transshipment of Indian containers and mainline ship operators with 45% of Colombo’s transshipment volumes originating from or destined for an APSEZ (Adani Ports and Special Economic Zones Ltd) terminal in India.
As the first-ever Indian port operator in Sri Lanka, Adani Ports will hold 51% of the terminal partnership (JKH: 34% & SLPA:15%) and WCT will be developed to reach a capacity of over 3 million TEUs annually.
The quay length of 1400 meters and an alongside depth of 20 meters make WCT a prime destination for the transshipment of cargo and handling of Ultra Large Container Carriers.
Completion of construction of the first stage of WCT is scheduled for 2024.