Sri Lanka to rebid development of fourth Columbo container terminal

Sri Lankan maritime officials are going back to the drawing board in their attempts to develop a fourth container terminal at the Port of Columbo.

Tilak Collure, the South Asian nation's ports ministry secretary told Bloomberg Tuesday that it has scrapped bids for the fourth terminal, which would increase Columbo's capacity by more than 50 percent to nearly 7 million TEUs. Collure declined to reveal the reason for the decision.

Columbo, primarily a transshipment port, is relying on the terminal to boost volume in the future as its existing three terminals reach capacity. Sri Lanka's government, the Bloomberg report said, is counting heavily on increasing transshipment as a way to offset the economic losses in tourism arising from a civil war in the country.

However, Columbo is likely to face increased pressure as a transshipment hub from India — the key market it serves through transshipment — as larger ports develop in India, particularly two transshipment terminals in ports in southern Indian state of Kerala.

Among the five original bidders for the new Columbo terminal were PSA International and Hutchison Port Holdings, the two biggest terminal operators in the world. 

Source: American Shipper