Adani India to have 51-of Sri Lanka port terminal, JKH a ‘material stake’
ECONOMYNEXT – India’s Adani Ports said it will have a 51 percent stake in a container terminal in Colombo port, while Sri Lanka’s John Keells Holdings said it will have an undisclosed ‘material stake’.
Adani Ports and Special Economic Zones Ltd said it had received a letter of Intent from the Ministry of Ports and Shipping of Sri Lanka and the Sri Lanka Ports Authority, following approval from the Cabinet of Ministers.
Around 45 percent of Colombo’s transshipment containers either came from or ended up at an Adani Terminal in India, the firm said.
“The network impact of this partnership is significant and expected to be mutually benefitted from the string of 7 container terminals across its 12 ports that Adani operates along the Indian coastline handling an annual volume of over 6 million TEUs,” Adani ports said in a statement.
“This partnership will multiply and accelerate the transhipment options that will become available to serve various shipping lines and other potential port customers across the South Asian waters, benefiting both, India and Sri Lanka in multiple ways.”
Adani Port said it will have a 51 percent stake in the project. Sri Lanka Ports Authority will have a 15 percent stake on a 35-year concession, government ministers had said.
“A concession agreement is expected to be executed in due course,” John Keells Holdings said in a stock exchange filing. “JKH will have a material equity stake in the project.”
It is not known who the other shareholders are.
The 1,400 metre quay length and 20 meter alongside depth West Container Terminal at Colombo port would be able to handle 3 million containers a year.
It will be able to handle ultra large container carriers, which now calls at the China-run Colombo International Container Terminal.
JKH currently runs South Asia Gateway Terminal. (Colombo/Mar16/2021)