Adani Ports and Special Economic Zone (APSEZ) received a Letter of Intent (LOI) for the development and operations of West Container Terminal (WCT) in Colombo, Sri Lanka.
APSEZ received the LOI from the Ministry of Ports and Shipping of Sri Lanka and the Sri Lanka Ports Authority, acting on behalf of the Government of Sri Lanka.
APSEZ will partner with John Keells Holdings PLC, Sri Lanka's largest diversified conglomerate, and with the Sri Lanka Ports Authority (SLPA) as a part of the consortium awarded this mandate. The WCT will be developed on a Build, Operate and Transfer basis for a period of 35 years as a public-private partnership. WCT will have a quay length of 1400 meters and alongside depth of 20 meters, thereby making it a prime transhipment cargo destination to handle Ultra Large Container Carriers.
The project is expected to boost WCT's container handling capacity and further consolidate Sri Lanka's locational advantage as one of the world's top strategic nodes along the busiest global transhipment route.
The network impact of this partnership is significant and expected to be mutually benefitted from the string of 7 container terminals across its 12 ports that Adani operates along the Indian coastline handling an annual volume of over 6 million TEUs. This partnership will multiply and accelerate the transhipment options that will become available to serve various shipping lines and other potential port customers across the South Asian waters, benefiting both, India and Sri Lanka in multiple ways.
The announcement was made after market hours yesterday, 15 March 2021. Shares of APSEZ fell 1.11% to settle at Rs 719 yesterday.
Adani Ports and Special Economic Zone (APSEZ) is the largest port developer and operator in India with 11 strategically located ports and terminals Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and Kattupalli and Ennore in Tamil Nadu. The company is also developing a transhipment port at Vizhinjam, Kerala.
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