SLPA gets on with $1,200-mn port expansion project

Colombo: The Colombo Port Expansion Project (CPEP), the largest infrastructure development project commenced with a US$1200 million investment. Announcing this occasion as the “momentous event”, Foreign Affairs, Ports and Aviation Minister Mangala Samaraweera said this would be largest development project undertaken by the country.


In addition he pointed out that this year the Colombo Port would be able to cross the 3 million TEUs, establishing another milestone.

“Upgrading of the Colombo Port is critical to the shipping industry,” he said asserting that this project will provide for Sri Lanka to be ranked among the best ports in the world.


In addition it was projected that through this venture by the Sri Lankan Government the Colombo Port would be able to establish itself as the first port in South Asia to handle 18000 TEUs. In this respect, the minister pointed out that the shipping lines were already drawing up plans.


The CPEP entails the building of 4 container terminals of 4 berths each over a period of several years, which will ultimately lead to a threefold increase in port capacity.


The CPEP, at its commissioning, will go down as one of the most significant infrastructure projects in Sri Lanka’s history. This project, which will result in the creation of a government-built and owned harbour facility, will include public-private partnerships in the provision of terminal services.


The project was inaugurated by President Mahinda Rajapaksa at the Colombo Port Monday by laying the foundation stone who observed that this would serve as a significant location as a port for the whole of South Asia in addition to being able to increase its capacity by double or triple the amount already achieved.


Samaraweera observed that there is diversity in terminal management and would also have an equity stake in each terminal being developed, and hopes to maximize on the market-building, training and knowledge-transfer opportunities available through such joint ventures.


The project upon its completion by 2010 the capacity of the Colombo Port will be approximately 12 million (TEUs) compared to its existing annual maximum capacity of around 4 million TEUs, a number that will soon be reached, as the port achieves its 3 millionth TEU milestone within this month.


Each new terminal would be of 1,200 metres length, and have between 3 and 4 berths, depending on the operator’s choice of configuration. The first terminal will become operational in 2010 and have a nominal capacity of 2.4 million TEUs, with the others being brought on-line as the market demands it. The new port basin will have a dredged depth of 18 metres, with an access channel depth of 20 metres. It is planned to incorporate the latest generation of yard planning and container handling equipment and techniques, with the aim of maintaining berth and vessel productivity at class-leading levels of performance.


The Minister stated that the commencement of the inland harbour is scheduled for the first quarter of next year.


Meanwhile, Sri Lanka Ports Authority (SLPA) Chairman Saliya Wickramasuriya said the long awaited project inaugurated would essentially bring about development and business opportunities thereby enhancing economic development of the country.


He asserted that the concessionary funding worth Rs.35 billion has been provided as a loan by the Asian Development Bank (ADB) for the commencement of this project.


Tender documents will be issued internationally from December 26 and it is expected that awarding of the construction tender would take place by July 2007 for a construction period of 39 moths for completion in 2010. The terminal construction should be also be completed in 2010.