NEW DELHI (South Asian Wire)
Indian port trader Adani Group has decided to build a container terminal in Sri Lanka with an investment of $700 million.
China is building a beach-linking jetty in the Lankan capital Colombo with an investment of $500 million. Adani Group’s container terminal is located near the jetty. Adani Group has entered into an agreement with the Sri Lanka Port Authority. According to this agreement, with an investment of over $700 million, it has become the largest ever investment in the port sector of Sri Lanka.
Through the sea
China has been trying to encircle India through the sea for a long time. India has tied up with the Port Authority of Sri Lanka to answer Beijing in its own language. India’s Adani Group has entered into an agreement with the Sri Lanka Ports Authority (SLPA) to develop and operate the Colombo Port’s Western Container Terminal for 35 years.
in Sri Lanka Colombo Port for the development of West container terminal in India and Sri Lankan authorities with the Japanese government has decided after several rounds of discussions. The terminal is considered strategically important as the capital is close to a sea-coast connecting jetty being built by China at a cost of $500 million in Colombo.
important port for business
Adani Group has signed a Build-Operate-Transfer (BOT) agreement with its local partner John Keels Holdings and SLPA to develop WCT at Colombo Port. The two local entities will hold 34 per cent and 15 per cent stake in the newly combined company, West Container International Terminal. This port is important from the business point of view as it handles 24 per cent of the total port capacity of the country. This entire port of
Colombo under Adani’s control will remain under Adani’s control. It has been named Colombo West International Terminal. This new container jetty is about 1.4 km long. It is about 20 meters deep and will handle 3.2 million containers every year. In the first phase of this project, a 600 meter terminal will be built and it will be completed within two years. After about 35 years, this terminal will again go to the Government of Sri Lanka.
Sri Lanka had recently asked China for a new loan of $ 2.2 billion to save the country’s deteriorating economy. China already has billions of dollars in debt on Sri Lanka. In return, it had to hand over its Hambantota port to China on a 99-year lease.