Singapore Port interested in investing in Colombo
As the Sri Lanka Ports Authority (SLPA) last week called for Expressions of Interest for the East Container Terminal (ECT) of the Colombo Port, the Business Observer learns that several key players have shown keen interest in coming to Colombo.
Among the interested parties is the Port of Singapore Authority (PSA), a highly successful global port operator with facilities in several parts of the world.
The Minister who met the chief executive officer of PSA in Colombo recently said: “They are bullish of the prospects for Colombo which has potential to become ‘the service provider’ for this part of the world when the middle classes of India, Pakistan and Bangladesh begin to exercise their ability to spend very soon.”
Deputy Foreign Minister Dr. Harsha de Silva said trade of goods going through Colombo will be massive – and it makes so much sense for Colombo to be ready to be the logistics and shipping hub in the region and become a key part of the global production network. The SLPA hopes to award a BOT concession for the East Container Terminal of Colombo Port and this invitation for Expression of Interest (EOI) is the pre – qualification stage and the first step in the process leading to the selection of a Concessionaire for the award of a BOT concession.
According to the announcement through the SLPA website, “The ECT in its present form has a 440m long, 18 m deep quay wall, a 20-hectare yard area and connected facilities developed by the SLPA. The Concessionaire has the advantage of deploying container handling equipment upfront and operating the existing facility while developing the rest of the terminal.
The Asian Development Bank has been appointed to provide the transaction advisory services in the process of selection of a Concessionaire.
When the Sunday Observer of May 22 highlighted the delays in the bidding process for ECT, Minister of Ports and Shipping, Arjuna Ranatunga wrote to Observer Business saying, “It was the decision of the government that prevented SLPA from going ahead with procurement as the government decided that SLPA should no longer depend on loans as the loans already taken for development of Hambantota port has placed it in an extremely difficult financial situation.
The Ministry of Ports and Shipping and SLPA have plans to develop Colombo keeping abreast with the world class hub ports including PSA, Hong Kong, Antwerp, Rotterdam, Dubai, Port Klang and Port of Tanjung Pelepas.
Meanwhile, Deputy Minister Harsha de Silva said in a recent interview with the Business Observer that the government’s ability to invest large amounts of money for infrastructure development such as ports is limited.