A month after scrapping the 2019 East Container Terminal deal with India and Japan, Sri Lanka has approved a proposal to jointly develop the West Container Terminal of Colombo Port in Sri Lanka with India’s Adani Ports, the Daily Mirror reported
A month after scrapping the 2019 East Container Terminal deal with India and Japan, Sri Lanka has approved a proposal to jointly develop the West Container Terminal of Colombo Port in Sri Lanka with India’s Adani Ports, the Daily Mirror reported.
Adani Ports and Special Economic Zone Limited (Adani Ports & SEZ) is India's largest private multi-port operator. It is a part of the Adani Group, an integrated infrastructure corporation.
APSEZ has a presence across six ports in India. The company's aim, according to published reports. is to increase annual cargo handling capacity from 91 million MT in 2013 to 200 million by 2020. The Mundra Port in Gujarat is said to be its crown jewel.
The project will on the basis of Build, Operate and Transfer for a period of 35 years. The Sri Lankan government okayed the proposal on Monday. The port will be developed as a Public-Private Limited Company in collaboration with the Sri Lanka Ports Authority and parties nominated by Indian and Japanese Governments.
Earlier, India, Japan, and Sri Lanka were to develop the East Container Terminal of Colombo Port under a tripartite agreement signed in 2019 by the previous Sri Lankan government. However, last month, Sri Lankan Prime Minister Mahinda Rajapakse had scrapped the deal amid heavy protests by labor unions in Sri Lanka.
The sudden move offended both India and Japan- key development and security partners of the island nation. The latest offer by Colombo seems an effort to placate its two important allies.
Daily Mirror reported so far the Japanese government hasn’t nominated any of its investors for the new offer.