Arjuna prefers Government to retain majority stake of Colombo Port East Container Terminal

Ports and Shipping Minister Arjuna Ranatunga says he prefers the Government to retain a majority stake in the Sri Lanka Port Authority’s Colombo Port East Container Terminal.

Responding to a question raised in Parliament yesterday, the Minister said the Government has called for Expressions of Interest (EOIs) from private investors to invest in the terminal but the exact mechanism had not yet been decided.

He said that a Cabinet paper had been submitted to lease out the East Terminal retaining a minimum of 15% to the Sri Lanka Ports Authority (SLPA) but his personal view was that the Government should negotiate with the investor to retain a 51% stake.

The SLPA has invested $ 80 million for the construction of the initial 400 metres of the 1,200-metre-long East Container Terminal to increase the container handling capacity and its construction works are in their final stage. The Government in June 2016 called for bids to complete the terminal on a Build, Operate and Transfer (BOT) concession. According to a report, Expressions of Interest (EOI) submitted by seven bidders are being evaluated by several committees.

Minister Ranatunga said the East Terminal was very important to the Ports Authority as it was a deep water terminal which could allow deep-draught ships to enter.

The Minister said that the SLPA would procure cranes and operate the first 400 metre section of the terminal which has already been built and Cabinet approval had been sought to procure the cranes.