The group, along with John Keells Holdings and the Sri Lankan Port Authority (SLPA), will develop the West Container Terminal (WCT) in the Port of Colombo. A 35-year build-operate-transfer concession agreement has been signed with the Ministry of Ports and Shipping of Sri Lanka and SLPA for the terminal, which will have an ultimate throughput capacity of 3.5M TEU year. It is expected to cost US$750M to develop.

Karan Adani, CEO and whole time director of APSEZ, said: “The WCT partnership is significant on several fronts. It is a continuation of the deep and mutually beneficial strategic relationship between two neighbouring nations. The combination of the strategic location of the Port of Colombo as a launching point for transhipment across the entire subcontinent, the deep domestic strength of SLPA and John Keells Holdings, and the Adani Group’s unmatched network of container terminals across the Indian coastline opens up several dimensions of growth possibilities for years to come, not just within our two countries, but also to the east  as well as the west of our two nations.” 

The new terminal, which will have a 1,400m quay with a depth alongside of 20m, will be capable of handling three ULCVs simultaneously. For Colombo, the new terminal will raise its hub status in the region, while giving it much needed additional berthing space for mega container ships.

For APSEZ, the deal will considerably strengthen its position in the South Asia region, potentially generate additional cargo for its terminals in India, and allow the company to launch further value-added logistics services for its customers. According to the company, this is because some 45% of Colombo’s existing transhipment traffic already originates from, or is destined for, APSEZ-controlled terminals in India.

The WCT deal comes as something of a relief for APSEZ. The company had been involved in a trilateral pact to build and operate Colombo’s planned East Container Terminal, but earlier this year, SLPA, under pressure from trade unions and opposition parties, decided to do this alone.

In 2020, Colombo handled 6.85M TEU, of which about 82% comprised transhipment cargo. Overall traffic was down 4.7% on the previous year. 

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This complete item is approximately 400 words in length, and appeared in the March 2021 issue of WorldCargo News, on page 11. To access this issue download the PDF here