Chinese company signs US$500 million deal to build container port in Sri Lankan capital

Aug 16, Colombo: Sri Lanka announced Tuesday that it entered into a US$ 500 million deal with one of the largest port operators in the Asian region, the Hong Kong-based China Merchants Holdings International (CMHI) to build and operate a container port in the Sri Lankan capital of Colombo.

The Company has signed a deal to invest more than US$500 million to build and operate a container port in Colombo, the External Affairs Ministry said.

Sri Lankan President Mahinda Rajapaksa has signed the deal during a state visit to China last week, Reuters reported.

The blue-chip conglomerate has a 55% share in the project. Aitken Spence will hold a 30% stake in the project, while the Sri Lankan port authority will hold the remaining 15% stake.

Under the first phase, a new terminal being built is scheduled to begin operations in early 2013, the company said in a statement.

The terminal is also being built by the same Chinese contractor that built the Hambanthota port complex – China Harbour Engineering Company (CHEC) and Sino Hydro Corporation.

The Chinese company and Sri Lankan conglomerate Aitken Spence entered into a non-binding agreement with the Sri Lanka Port Authority to design, construct, develop, manage, operate, and transfer the South Container Terminal at the Port of Colombo, with a designed capacity of 2.4 million TEUs.

Leave a Reply