A seven-member negotiation committee headed by Ports and Shipping Ministry Secretary U.D.C. Jayalal has been appointed to evaluate China’s proposal submitted for the implementation of a cargo service supply centre under a public-private partnership (PPP) in the Battenburg area of the Colombo South Harbour.
Accordingly, the proposal has been submitted by the Chinese-controlled Colombo International Container Terminals Ltd. (CICT) to establish a cargo service supply centre within a portion of land – 5.3 hectares (ha) – adjoining the South Asia Gateway Terminals (SAGT) and surrounded by the Colombo Port City, the CICT, and the East Container Terminal (ECT).
It is stated, in the recent cabinet decision on the matter, that the CICT has furnished a resolution on the increasing demand for the construction of a service supply centre, owing to the expected increase in the operational capacity within the Colombo Port by 2023, when it is expected to be exceeded by 10 million 20-foot equivalent units (TEUs) per annum, following the inauguration of the partial operations of the ECT and the West Container Terminal (WCT) by then. It has been identified that a container terminal would therefore be appropriate for the construction of an internal cargo operation centre in the Sri Lanka Ports Authority (SLPA) with cargo service supply terminal facilities.
However, Cabinet approval has been granted for the proposal submitted by Ports and Shipping Minister Rohitha Abeygunawardena last week to appoint the said negotiation committee and to take further actions as per the recommendations of that committee.
“The committee comprises three secretaries and three experts including myself,” Jayalal told The Sunday Morning.
“We will discuss with the investor, the CICT, and it will be a PPP,” he added.
He also noted that the discussions would be focused on the ratio in terms of the shares that would be divided between the State and the investor.
“We will be meeting soon to discuss,” Jayalal mentioned.
Under the national harbour main plan, in which the main objective is to develop the Colombo Harbour, which is the central harbour within the South Asian region, as a service provision centre, it has been identified that the Battenburg and Bloemendhal areas that belong to the Colombo South Harbour can be developed as service supply areas under a state-private joint partnership.
Source : Nation.lk
