China Merchants to build, operate 2.4 million TEU Colombo terminal

HONG KONG`s China Merchants Holdings (CMHI) has made a deal to build and operate a container terminal in the Sri Lankan capital of Colombo, Dow Jones reports.

The CMHI has signed a deal to invest more than US$500 million, representing a 55 per cent share in the project.


first phase is to start operations in early 2013, the company said in a statement. Contruction is being contracted to mainland builders China Harbour Engineering Company (CHEC) and Sino Hydro Corporation.


The Chinese company and Sri Lankan conglomerate Aitken Spence entered into a non-binding agreement with the Sri Lanka Port Authority to design, build, develop, manage, operate, and transfer the South Container Terminal at the Port of Colombo, with a designed capacity of 2.4 million TEU.


Aitken Spence will hold a 30 per cent while the Sri Lankan port authority will hold the remaining 15 per cent, said the report.