Colombo Page has reported that construction work to develop the Western Container Terminal (WCT) of the Colombo Port has commenced.
India's Adani Group, its local partner John Keels Holdings and the Sri Lanka Ports Authority (SLPA) are jointly carrying out the project.
Adani Ports and Special Economic Zone Ltd (APSEZ) signed the build-operate-transfer (BOT) agreement in September last year to develop and operate the West Container Terminal with its local partner John Keells Holdings (JKH) and the Sri Lanka Ports Authority (SLPA), with an investment of US$ 700 million.
As per Colombo Page, APSEZ will hold a 51% stake in the terminal and John Keels Holding will own 34%. The remaining 15% of the stake will be owned by the Sri Lanka Ports Authority (SLPA). In the first phase an 800 meter long and 20 meter deep quay that can handle 1.6 million TEUs annually will be constructed.
When completed, this deep water terminal, with a quay length of 1,400 meters, an alongside depth of 20 meters will have an annual capacity of approximately 3.2 million TEUs.
Operation of the first phase of Colombo Port’s Western Container Terminal (WCT) is expected to be commenced in 2024. The entire work of the project is expected to be completed in 2025.
Colombo Ports Controversy
The WCT was controversial as India had been earlier allocated the Eastern Container Terminal. A memorandum of understanding signed with India and Japan on the development of the Eastern Container Terminal (ECT) in 2019, was withdrawn following the protest by Sri Lankan trade unions and some political parties which is alleged to be at the behest of China.
However, in March 2021, the Sri Lankan Cabinet granted approval for the development of the WCT through a public-private partnership (PPP) in collaboration with the SLPA and investors nominated by the Indian and Japanese governments.
For Adani Ports the WCT will be a strategic gain as 45 per cent of Colombo's trans-shipment volumes start from or are destined to an Adani Ports and Special Economic Zone (APSEZ) terminal in India.
As per the Print, Indian High Commissioner in Sri Lanka has termed the strategic Colombo Port's Western Container Terminal a symbol of closer economic cooperation between India and Sri Lanka and how the two can work for mutual benefit
Vizhinjam Port
The WCT will be linked to the Vizhinjam Port in Kerala. As per website of the Company, APSEZ is developing this deep-sea water port as India’s first Mega Transshipment Container Terminal.
The port website states, "The world class, future ready port is the only transshipment hub in the Indian subcontinent, closest to the international shipping routes, and is centrally located on the Indian coastline. It has a Natural draft of 20-24 m & minimal littoral drift".
Vizhinjam Port offers large scale automation for quick turnaround of vessels with state-of-the-art infrastructure to handle Megamax containerships. Its capacity in phase 1 is to be 1 million TEUs and in subsequent phases, another 6.2 million TEUs will be added as per the Adani ports website.
Development however has been held up as local fishing communities are protesting that marine dredging since December 2015 has led to significant erosion of the coast and that threatens their livelihood.