Sri Lanka Port to seek equity partner for new container terminal

TIN news:        Sri Lanka Ports Authority is to offer for an operator for its third container terminal which is nearing completion, who will also be given an equity stake, as its first terminal loses business to competition in Sri Lanka and outside.
 
The so-called East Terminal of the port with a 450 meter long jetty and container yard is nearing completion, the state information office said.
 
Inside Colombo Port, John Keells Holdings already operates the South Asia Gateway Terminals (SAGT) and China Merchant Holdings operates Colombo International Container Terminal (CICT), of which it has a 15 percent stake.
 
China Merchant Holdings owns 85 percent of the CICT.
 
The cabinet of ministers have approved a proposal to call for expressions of interest to choose an operator who will also be offered a 49 percent equity stake, the state information office said. SLPA will hold the majority stake.
 
SLPA’s own older JCT and UCT terminals have been losing business to private operators.
 
SLPA wants to partner with a global operator to improve productivity and win more business.
 
The two private terminals are already paying SLPA about 45 million US dollars a year.