July 16, 2024
MARITIME: US Invests $553m in Development of New Deepwater Terminal in Colombo Port
– By Godswill Odiong

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By Our Correspondent

The United States has announced a commitment of $553 million to support the development of a deepwater shipping container terminal known as the “Colombo West International Terminal” in the PORT OF COLOMBO, according to FleetMon.

It stated: “The funding for this project will be provided by the US Development and Finance Corporation (DFC). DFC is partnering with Sri Lankan company John Kells Holdings and the Indian-based Adani Ports & Special Economic Zones Limited, which owns a 51% share and is leading the development of the terminal.

“The PORT OF COLOMBO serves as the busiest transshipment hub in the Indian Ocean and has been operating at over 90% capacity since 2021, highlighting the urgent need for additional capacity and new terminals.

“In September 2021, Adani Ports signed a $700 million agreement with the Sri Lanka Ports Authority and the local conglomerate John Kells Holdings to collaboratively develop the terminal. This project follows the build-operate-transfer model and is set to span over 35 years.

“Once completed, the terminal is expected to generate a substantial number of new jobs, not only in Colombo but across Sri Lanka, significantly bolstering the economy.

“The US Development and Finance Corporation, established in 2019, is often seen as a countermeasure to China’s Belt and Road Initiative. China has been heavily involved in the development of ports, terminals, and infrastructure projects in Sri Lanka, including facilities in Colombo and Hambantota. The United States is making substantial investments in the Sri Lankan economy to counterbalance Chinese influence in the island nation.”

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