Colombo, January 30 (Daily Mirror): The Colombo West International Terminal (CWIT) is scheduled to commence operations next month, , while the Sri Lanka Ports Authority (SLPA)-managed East Container Terminal (ECT) is likely to go into full operation later this year.
John Keells Holdings PLC Deputy Chairman/Group Finance Director Gihan Cooray shared that the public-private partnership-based CWIT is on course to commence operations later next month as scheduled, while the SLPA-owned and managed ECT has encountered delays.
Cooray shared this update while addressing a panel at the First Capital Investor Forum held last week.
“We (the private sector) are on track to commence operations of a brand-new terminal within two years. However, the opening of the ECT is still unclear,” he said.
Cooray went on to assert that Sri Lanka has lost an opportunity to capitalise on the port and shipping sector, as the country lagged in increasing port capacity. However, he remarked that “it’s better late than never”.
For the CWIT, the first batch of quay and yard cranes arrived in September last year, following which, commissioning is expected to be completed by the third quarter of this financial year. Accordingly, the first phase of the terminal is set to be operational within the fourth quarter.
The deep-water terminal has an overall annual handling capacity of around 3.2 million TEUs, equipped with a quay length of 1,400 metres and an alongside depth of 20 metres. In particular, the quay length of 800 metres in phase one is set to facilitate the servicing of two large vessels concurrently, enabling higher throughput once phase one becomes operational from the end of next month. The remainder of the terminal is expected to be completed in mid-2026.
The build, operate and transfer agreement for the development of West Container Terminal (WCT-1) was signed on September 30, 2021, for a lease period of 35 years, between the SLPA and Colombo West International Container Terminal (Private) Limited (CWIT).
The construction of the second phase of the ECT continued during 2023. Extending across 75 hectares, with a quay length of 1,320 metres and featuring 12 gantry cranes and 40-yard cranes, the second phase is expected to be completed by end-2025.
Upon the completion of both terminals, the estimated annual capacity of the Port of Colombo is expected to increase by approximately 6-6.5 million TEUs.
Meanwhile, the construction of the ECT recommenced in January 2022 and was scheduled to be completed in 2024. However, according to the latest update from the SLPA, the ECT is only expected to go into full operation later this year.
The ECT extends across 75 hectares and will consist of a total quay length of 1,320 metres, of which 440 metres were constructed in 2015. Once completed, the SLPA is expected to operate a fully-fledged terminal with 12 shore-to-shore cranes and 40 automated rail-mounted gantry cranes.
Digitalisation
Digitalization , automation, and complete logistic integration, along with soon-to-be materialised capacity additions, are critical to putting the Port of Colombo back on the map as one of the best-performing and most efficient hub ports in South Asia and the Indian Ocean, according to a top industry figure.
Colombo West International Terminal (CWIT) CEO Munish Kanwar emphasised that the Adani-led West Container Terminal (CWIT) is coming at the perfect time to strengthen the position of the Port of Colombo as the major transshipment hub, not only in South Asia but also in the Indian Ocean Belt.
However, he stressed that the Port of Colombo must take further initiatives to address the congestion, which has worsened in recent times.
“With this expansion, we’ll be handling larger vessels, more cargo, and reducing congestion while building on efficiencies. These are the driving factors for shipping lines today. They want to see efficiency.
“They don’t want to see congestion. So, yes, this puts Colombo back on the map. We’ve been struggling with this congestion for a long time because there has been no additional capacity for so many years. It’s a welcome addition,” he added.
In this regard, he highlighted that digitalisation and automation could play a transformative role, illustrating CWIT’s operations as a fully automated terminal.
“We are making a fully automated terminal here, and that’s the need of the hour. Another need of the hour is to adopt those digital innovations that are ongoing, those digital tools available, whether it is automated cranes, digital booking systems, or real-time cargo monitoring. That streamlines the operations completely and takes away a lot of human errors,” Kanwar explained.
He also discussed the focus on complete logistic integration, which could enhance connectivity for the country beyond a single port.
“We have seen economies grow where there’s a huge integration between the industry and the port. It’s coming up in Colombo, and there’s a need to improve inland connectivity, whether by rail, road, or inland container depots.
These need to be better integrated with the ports. That will reduce the bottlenecks and improve the overall supply chain experience,” he said.
Furthermore, he suggested strengthening FTAs with major shipping nations and collaborating on upcoming shipping alliances.
“Why not Europe with Europe as well? It’s already a great connector, but we can leverage that. We can also collaborate with major shipping alliances that are emerging. Many shipping alliances are changing this year, and we can collaborate with those alliances to bring in more cargo and vessels, thus justifying the additional volumes and capacities we have,” he added.
Additionally, he outlined the need to develop human capital in line with emerging technologies.
“I think the future of the port industry in Sri Lanka will not be governed by automation or capacity additions alone. It will depend on human resources ready to take on those challenges, whether it’s investment in safety, security, logistics, or port management. We need to develop those capabilities in-house, and only then can we provide value-added services, efficiency, and manage the additional capacity coming in,” he said.
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