Colombo port gets 450 million dollars boost

Sri Lanka Ports Authority has signed a $450 million arrangement with China Merchants Holdings and local conglomerate Aitken Spence to expand Colombo port's cargo handling capacity.

The joint venture will result in the construction of three terminals in Colombo port adding a total 7.5 million twenty-foot equivalent units (TEU) on top of the port's current 4.5 million TEU limit.

"The tender board has finalised the deal," Sri Lanka Ports Authority Chairman Priyath Wickrama told Reuters.

"The total investment is around $450 million."

According to Reuters, China Merchants will have a 70% stake in the venture.

Construction for the project is set to begin within six months, with completion due in three years.

Chinese companies have been actively participating to rebuild infrastructure in Sri Lanka after the latter's civil war.

Sri Lanka's Hambantota port, in a seperate project, is also being built by Chinese construction companies. The costs of the port project are estimated at around $1.5 billion.
(Source:www.portworld.com)