Home / TOP STORY/ Ports Ministry to present Cabinet paper on ECT development

Ports Ministry to present Cabinet paper on ECT development


Comments / {{hitsCtrl.values.hits}} Views / Friday, 24 August 2018 00:00


 

  • Govt. grants approval to Ports Authority to run the ECT 
  • Ports Authority to procure equipment for the development of the Terminal 
  • Equipment to be leased till procurement is delivered to bring the Terminal to functionality as soon as possible

 By Chathuri Dissanayake 

Port and Shipping Ministry is preparing to present a Cabinet paper for procurement of equipment needed to operationalise the East Container Terminal, set to be managed by the Sri Lanka Ports Authority (SLPA), utilising its own funds. 

Denying reports that the ECT was to be managed as a Public-Private Partnership, subject Minister Mahinda Samarasinghe, speaking at a press conference held at the Sri Lanka Freedom Party Head Office yesterday, said that the Cabinet has given approval for the Terminal to be managed by the Ports Authority.

The National Economic Council and Cabinet of Ministers have both decided to have the SLPA manage the ECT to ensure “continuity and financial viability of the Ports Authority”, Daily FT learnt. According to sources within the Ports Authority, initial investment was estimated to be $ 100 million under Phase 1 of development.

Following the decision, the Ministry is now ready to go ahead with the much delayed development of the ECT. 

“Colombo International Container Terminals (CICT) is the only deep-water terminal able to receive large container ships. It has not reached its capacity, and we need ECT running as soon as possible,” Samarasinghe said.

The Minister is expected to present a Cabinet paper seeking approval to appoint a negotiating committee and technical evaluation committee to proceed with procurement of equipment needed to operationalise ECT under Phase 1 of development. 

Further, the same Cabinet paper will also seek approval for leasing of equipment needed to commence work in ECT until the permanent equipment can be procured and delivered, the Minister said. 

“The equipment under Phase 1 of development of the project will only be delivered 15 to 20 months after the order is placed. But, since we need to start receiving ships in the Terminal as soon as possible, we will be leasing the equipment needed to operationalise the Terminal so that we can start work as soon as possible,” Samarasinghe said. 

According to the master plan of the Colombo Port Expansion Project (CPEP), the East Container Terminal has a 1,200m-long quay wall, alongside water depth of 18m and a yard capacity of 2.4 million TEUs. 

The Government, on earlier occasions, had attempted to form a consortium to manage the ECT with preference given to a partner from the Indian subcontinent. The preference to have a partner from the subcontinent was largely viewed as an attempt to neutralise the growing Chinese presence in Colombo Port. 

The Chinese firm China Merchants Port Holdings Company Ltd. already manages CICT, having a 35-year build-operate-transfer basis with 85% share ownership. 

Although Cabinet appointed negotiation committees and technical evaluation committees, the deal did not fall through. 

 


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Greening China and BRI: Chinese legal framework for sustainable environment protection

Tuesday, 20 November 2018

The concept and scope of greening the belt and road The Greening BRI is to add the ‘greening’ notion along with the ‘BRI’. Building a ‘Greening BRI’ means adhering to the concept of green development, balanced development, harmony betwee


Political evil paralysing Parliament

Tuesday, 20 November 2018

Our politics has arrived at a point when we must insist on recognising the niceties of human nastiness. Organised horror in Parliament is either trivialised or ignored by most of mainstream media print and electronic.


10 theses on Sri Lanka’s existential crisis: Roots, dynamics, dimensions

Tuesday, 20 November 2018

1.The crisis has deep national, social and psychological roots. Our island contains two consciousnesses or two types of consciousness, two competing states of mind. Contrary to myth, the periphery of our island has the longest uninterrupted colonial


Make toilets and safe sanitation services accessible to all

Tuesday, 20 November 2018

All people everywhere should have access to safe sanitation services, including hygienic toilets that are connected to quality sewage systems. For many people across the WHO South-East Asia Region, as across the world, access to these services never


Columnists More