Chinese firm partners with Sri Lanka's Aitken Spence on Colombo Port project

The Sri Lanka cabinet has recently awarded a contract to build and operate a new deep-water container terminal in Colombo port to a consortium made up of China Merchant Holdings International (CMHI) and the leading blue-chip conglomerate Aitken Spence.

In a stock filing report Aitken Spence announced that following the Cabinet approval, the Sri Lanka Port Authority (SLPA) and the Ministry of Ports and Aviation have issued a letter of intent Thursday (16) to design, construct, develop, manage, operate, and transfer the South Container Terminal at the Port of Colombo.

The South Container Terminal, the first container terminal to be built in the Colombo South Port Expansion Project, would be constructed in two phases. The terminal would include a quay wall length of 1200 meters with a minimum alongside water depth of minus 18 meters, Aitken Spence said.

CMHI, one of the largest port operators in the region, in partnership with Aitken Spence, was the sole bidder for the US$ 450 million project when the bids were called in July 2009.

According to SLPA Chairman Dr. Priyath Bandu Wickrama construction of the new container terminal is expected to start within six months after the contract is awarded. The terminal will also be built by the same Chinese contractor that built the Hambantota port complex - China Harbour Engineering Company (CHEC) and Sino Hydro Corporation.

Reportedly the CMHI will have an ownership of 55 percent, Aitken Spence 30 percent and the SLPA 15 percent in the new terminal.