China Merchants expects Sri Lanka terminal to double business this year
COLOMBO (EconomyNext) – China Merchants Holdings (International) Company has said container throughput at its Sri Lanka terminal is growing fast and expected to double this year with the project possibly reaching breakeven status.
Hu Jianhua, Executive Director of China Merchants Holdings (International), said the Colombo South Container Terminal in Sri Lanka handled a total container throughput of almost 700,000 TEUs in 2014.
It will possibly double its throughput during 2015, reaching the level of 1.4 million twenty-foot equivalent container units (TEUs).
“The project might also achieve breakeven and may even have a positive, though minimal, contribution in 2015” to the CMHI group financial performance, he said.
“The designed capacity of the container terminal is 2.4 million TEUs, which is expected to be fully utilized within 2 to 3 years,” Hu said.
Optimistic of the potential offered by Sri Lanka, the company intends to invest in other assets within the region, though no specific agreement has been reached at this point, a company statement said.
CMHI’s total container throughput handled exceeded 80 million TEUs for the first time in 2014, up by 13.4 percent from the year before.
The proportion of throughput derived from CMHI’s overseas terminals to the group’s total reached 17 percent.
Total throughput handled by the group’s overseas projects was 14.06 million TEUs in 2014, up 87.1 percent year-on-year