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China to upgrade Colombo terminal

[Hindu, Thursday, 18 August 2011 07:08 No Comment]

Sri Lanka has preferred to sign up with a Chinese company for a $500-million upgrade of its second container terminal in Colombo Port.

It has entered into a BOT agreement with China Merchants Holdings (International) Company, one of the largest port operators in the region, for a terminal that comprises a total quay length of 1,200 metres and a depot land area of 58 hectares, with water depth of 18 metres. The project is expected to take two phases, with Phase I to be ready for operation by early 2013. The entire facility will be ready in five years, said the Sri Lankan government.

The Chinese company has 55 per cent share in the project. A local company, Aitken Spence, will hold 30 per cent stake, while the Sri Lankan port authority will hold the remaining 15 per cent stake.

Priyath Bandu Wickrama, Chairman of Sri Lanka Ports Authority and Fu Yu Ning, Chairman of China Merchants Group were signatories to the agreement which took place in Shenzhen. Representing the two countries, China’s Ambassador to Sri Lanka Yang Xiu Ping and Sri Lanka’s Ambassador to China Ranjith Uyangoda witnessed the signing of the agreement.

Representatives from Sri Lanka Port Authority, China Development Bank, China Export & Credit Insurance Corporation and China Harbor Engineering Company Ltd., were also present at the signing ceremony.

[Full Coverage]

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