The Public Private Partnership (PPP) project, is a Joint Venture between China Merchants Port Holdings Co. Ltd.
(70%), Sri Lanka Ports Authority (15%) and Access Engineering PLC (15%) and would be operated as a Public-Private Partnership with a concession period of 50 years. The construction of the 8-floors, 92 m in height complex will start in two months and will be completed in two years.
“The investment is a clear signal that the investor appetite for Sri Lanka despite an economic crisis is still very vibrant,” said Ports, Shipping and Aviation Minister Nimal Siripala De Silva.
“The investment in the project will bring in much-needed foreign investment into Sri Lanka,” he added.
“Sri Lanka’s aspiration to become a major logistics hub in the region too would receive another boost with the launch of this project.”
The project aligns with Sri Lanka’s national development strategy to transform the country into a major logistics center, identified as a key sector and a driving force for economic development in the National Policy Framework (NPF) 2019.
Sri Lanka Ports Authority Chairman Keith Bernard said that the project will result in an infusion of US$ 126 million in addition to an upfront payment of US$ 26 million after the agreement is signed.
“The project is also expected to provide direct employment to a minimum of 1,800 people and create 10,500 other indirect job opportunities.”
“The complex will be directly linked with the airport via the Port Access Elevated Highway.” The five million square foot complex will offer the full gamut of logistics related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), General warehousing and various other value-added services.
It will provide better logistics and warehousing facilities and services, enhancing the Port’s competitive advantage and consequently strengthening its Hub status. The project will also improve the operational efficiency of the Port of Colombo and introduce leading-edge technology and innovation.
The Port of Colombo is currently ranked among the top 13 ports in the world in terms of shipping.