Cabinet green-lights $ 90 m CICT capacity expansion

Wednesday, 28 October 2020 00:22 - - {{hitsCtrl.values.hits}}

Cabinet this week approved a $ 90 million proposal tabled by Prime Minister Mahinda Rajapaksa to enhance the capacity of the Colombo International Container Terminal (CICT).

The proposal was presented by Prime Minister Rajapaksa in his capacity as Finance Minister.

“These funds will be used for the renovation of the existing equipment as well as for the implementation of productivity boosting work of that terminal and for publishing the orders for the provision of applicable tax relief as per the provisions of the Strategic Development Project Act in the Government gazette,” Cabinet Co-Spokesman Dr. Ramesh Pathirana said.

Considering the prevailing demand for the activities of that terminal as well as the future prospective business opportunities, it has been decided to extend the said project without performing further construction, but enhancing the capacity of its container yard, he added.

CICT is a joint venture company between China Merchants Port Holdings Company Limited (CMPH) and the Sri Lanka Ports Authority (SLPA). Under a 35-year Build Operate and Transfer Agreement with SLPA, Colombo’s third container terminal with a three million TEUs capacity was constructed in the Port of Colombo under the Colombo South Harbour expansion project. CMPH holds 85% of the partnership, whilst the balance 15% is being held by SLPA.

In January, CICT announced it handled a total of 2.9 million TEUs in 2019, achieving an 8.6% increase in its throughput and accounting for 40% of the volume of the Port of Colombo in 2019.