DELHI: To counter China’s growing influence in the region, the US International Development Finance Corporation (DFC) will fund $553 million for a deepwater shipping container terminal in the Port of Colombo that Adani Ports is developing as a JV. Colombo West International Terminal Pvt Ltd (CWIT), a consortium of Adani Ports and SEZ Ltd (APSEZ)., Sri Lanka's John Keells Holdings (JKH) and the Sri Lanka Ports Authority, is developing the terminal on a build, operate, and transfer (BOT) basis for 35 years. The fact that this is the first time a US government agency is funding an Adani project comes as reprieve to the conglomerate facing questions since the Hindenburg allegations earlier this year.
Describing it as a “transformative West Container Terminal project in Colombo”, Adani Group chairman Gautam Adani said: “This initiative is set to generate significant employment opportunities, boost economic growth, and enhance regional shipping capacity. The Adani Group is proud to be a part of this journey.”
APSEZ whole time director and CEO Karan Adani said: “We welcome the association of the US International Development Finance Corporation (DFC), the US government’s development finance institution, in funding the Adani project – and we see this as a reaffirmation by the international community of our vision, our capabilities and our governance. As one of the world’s largest port developers and operators, APSEZ brings to this project not only our proven world-class expertise but also our deep experience in infrastructure creation. When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka’s trade and commerce ecosystem.
The development of Colombo West International Terminal (CWIT) “will reinforce Colombo Port’s position as the primary hub in the region and is expected to elevate its ranking to 20th among the world’s top container terminals. It will also transform the port’s position in terms of global shipping connectivity, which is currently 12th globally. When commissioned, CWIT will be the largest and deepest container terminal in Sri Lanka. With a quay length of 1,400 m and an alongside depth of 20 m, CWIT will be equipped to handle ultra large container vessels with capacities of 24,000 TEUs. The new terminal’s annual cargo handling capacity is likely to exceed 3.2 million TEUs,” Adani group said in a statement.
APSEZ, India’s largest port developer and operator, has with six ports and terminals on the west coast of India and five on the east coast. It is developing two transshipment ports at Vizhinjam and Colombo