China Merchants wins US$500 million Colombo terminal deal

HONG KONG's China Merchants Holdings (International) Co and Aitken Spence & Co have won a contract to build Colombo's new container terminal, reports Bloomberg.

Sri Lanka Ports Authority chairman Priyath Wickrama said special meeting of the cabinet has approved the order and construction would commence within six months, said the report.

China Merchants will take a 55 per cent stake in the US$500 million project, China Merchants managing director Hu Jianhua told media in the course of announcing the terminal operator's interim results in Hong Kong.

Sri Lanka, 31 kilometres from India, wants to exploit its deep water and shipping location to rival Singapore and Dubai as a cargo hub serving India.

Sri Lankan President Mahinda Rajapaksa plans to spend $1 billion a year on infrastructure including ports, roads and power plants. Colombo's three other terminals handle 4.5 million TEU annually.
(Source:www.schednet.com)