Adani’s Fully Automated Terminal Begins Operations At Sri Lanka’s Colombo Port

India’s largest integrated transport and logistics company, Adani Ports and Special Economic Zone Ltd (APSEZ) has started operations at the newly built Colombo West International Terminal (CWIT) at the Port of Colombo in Sri Lanka.

The terminal is expected to boost the island nation’s role in regional trade. Construction of CWIT began in 2022, nearly a year after the Adani Group signed the agreement.

The project was developed under a 35-year Build, Operate and Transfer (BOT) model by a consortium of APSEZ, Sri Lankan conglomerate John Keells Holdings, and the Sri Lanka Ports Authority (SLPA).

CWIT is a major infrastructure project valued at $800 million. The terminal has a quay length of 1,400 meters and a depth of 20 meters, allowing it to handle around 3.2 million twenty-foot equivalent units (TEUs) every year.

It is also the first fully automated deep water terminal in Colombo, which is expected to improve cargo handling and reduce vessel turnaround time.

Adani Group described the terminal as an achievement for both countries. According to the company, the project will help create thousands of jobs while unlocking long-term economic value for Sri Lanka.

The group also said that the terminal strengthens the strategic partnership between India and Sri Lanka and shows its capability to deliver complex infrastructure projects on time.

John Keells Holdings stated that CWIT is one of its largest private-sector investments. The company believes the terminal will help position Colombo as a stronger transshipment hub in South Asia and improve trade connectivity in the region.

SLPA, part of the joint venture, also expects the project to raise Colombo Port’s global maritime profile.

The project had its difficulties. In 2023, the US International Development Finance Corporation announced support for a $500 million load to help fund CWIT.

But before the financing was finalised, Adani Group exited the loan deal in December and chose to use its internal funds and capital management plan instead.

In the previous year, the project also came under international scrutiny when US prosecutors filed bribery-related charges against Gautam Adani in an unrelated case.

Adani denied all allegations, but some governments, including Kenya, cancelled certain deals involving his companies. Despite the controversy, the CWIT project moved ahead as planned.

Now that operations have started, CWIT will compete with other major terminals in Colombo. The China-backed Colombo International Container Terminal (CICT) currently handled the highest volume, recording 3.3 million TEUs last year.

The SLPA-operated terminals, Jaye Container Terminal and East Container Terminal handled a combined 2.4 million TEUs, while the South Asia Gateway Terminal (SAGT), run by John Keells Holdings, managed 2 million TEUs.

In total, Colombo Port processed 7.7 million TEUs in 2024, which was a 12.3 per cent rise compared to 2023. Colombo’s port infrastructure is set to become even more competitive in the region.

Reference: Adani Group

Source: Maritime Shipping News