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West Container Terminal: All set to launch construction 

05 Mar 2022

By Uwin Lugoda Investors for the Colombo Port’s planned West Container Terminal (WCT) are ready to begin its construction following the recent signing of an agreement between them and the Sri Lanka Ports Authority (SLPA). Speaking to The Sunday Morning, the Port Ministry Secretary U.D.C. Jayalal stated that investors would commence construction on the WCT as soon as possible and estimated the timeframe to be within March. He said that the terminal was set to be completed by either 2024 or 2025. “We already signed a Build Operate and Transfer (BOT) agreement with our investor, Adani. It wants to start construction now, which I expect will commence within this month,” said Jayalal. The signing of the agreement between investors and the SLPA took place on 25 February, where other agreements such as site lease and financing were also signed. During the signing, it was stated that the first instalment of a premium of $ 15 million would be deposited with the SLPA within the following few days. According to the SLPA, the premium that is paid will be used by them as its equity share in the project. The shareholders’ agreement was signed between the SLPA, India’s Adani Ports, local private sector partner John Keells Holdings (JKH), and Colombo West International Terminals (CWIT).  SLPA Additional Managing Director (Technical)  Susantha Abeysiriwardena stated that Adani Ports held the majority of the equity with 51%, while JKH had 34%, and the SLPA controlled 15%. “The site lease agreement is between the SLPA and CWIT while the financing contract was entered into between CWIT and Adani Ports. All these agreements came to effect on 26 February,” said Abeysiriwardena. The WCT was gazetted as a strategic development project in November 2021. It is a 35-year BOT Public-Private Partnership (PPP) with an estimated investment of $ 650 million. Abeysiriwardena explained that while it was estimated at $ 650 million, the prices for civil work and machinery would be settled upon once tenders were called. Moreover, he stated that the Board of Investment (BOI) had supported the construction of the terminal by providing its investors tax concessions, which were approved by Parliament. He explained that this was due to the project being seen as a strategically important one for Sri Lanka. The first phase of the project will start from the day-of-effect for the agreement, and last around 36 months. During this time, 600 m of the quay wall and terminal area will be completed and operations will commence. According to the SLPA, 575 m of the quay wall, adjacent yard area, and connected facilities have already been developed. However, more funds are required for the remaining civil construction of the 1,320 m quay wall, the container yard, related facilities, and equipment. The second phase of the WCT will include the completion of a 1,400 m quay wall, with its operations starting within 48 months of the date of the BOT agreement. The final phase of WCT is set to take place within 60 months and includes the completion of the entire terminal and the commencement of all its operations.  


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