John Keells Holdings PLC (JKH) indicated that its future investment cycle would entail the development of Colombo Port’s West Container Terminal (WCT), as the company is estimating US$ 70 to 80 million investments during the terminal’s four-year construction horizon, as a party which holds significant equity share in the tripartite project.
As the company was coming off of an extremely heavy investment cycle in the forgoing financial year ended March 2021, particularly with the nearing of the completion of its iconic property development project ‘Cinnamon Life’, the company said it plans to commence construction of the terminal early next year, with part of the terminal to become operational in 24 months, although the full completion will take another 24 months.
Cinnamon Life commenced handing over of its residential and office units resulting in recognition of revenues in the ongoing financial year while the full project completion is scheduled for the first quarter of 2022/2023, an year from now, ending the over seven-year plus heavy investment cycle.
JKH, which operates South Asia Gateway Terminal (SAGT) in the Colombo Port, said it received a letter of intent as the local private sector party to the tripartite agreement to build, operate and transfer the West Container Terminal with Adani Ports and Special Economic Zone Limited in India and Sri Lanka Ports Authority for a lease period of 35 years, making the project a public, private partnership.
“Going forward investments will include the West Container Terminal in the Port of Colombo in partnership with the Adani Group in India,” said Krishan Balendra, John Keells Chairman.
“This investment will ensure continued long-term exposure to the ports business in the country which augers well for the future of the group as well as provide a better balance for our portfolio,” he added.
According to JKH, WCT as a part of Colombo’s South Port Development has a deep-water terminal with an alongside depth of 20 metres and annual capacity of approximately 3 million TEUs.
The development of both the East and the West container terminals addresses a long overdue need for capacity enhancement at the Colombo Port.
Development of the East Container Terminal of the Colombo Port will single handedly be carried out by Sri Lanka Ports Authority as the government had to disband an earlier tripartite agreement signed between India and Japan along with Sri Lanka Ports Authority by the previous government due to vehement opposition from trade unions.
Source : Daily Mirror
