West Container Terminal BOT agreement with Indian port operator Adani inked

„■ „Construction of the first phase of the terminal to begin early next year

„„■ Total investment for the project estimated at US $ 650mn „

„■ First phase of the project to be completed within 24 months; balance within a period of further 24 months

Becoming the first Indian port operator in Sri Lanka, India’s Adani Group yesterday signed a build-operate-transfer (BOT) agreement with its local partner John Keells Holdings PLC (JKH) and Sri Lanka Ports Authority, to jointly develop the West Container Terminal (WCT) of the Colombo Port.

JKH in a filing to the Colombo Stock Exchange said the BOT agreement between SLPA and the project company, Colombo West International Terminal (Pvt.) Ltd (CWIT), was executed yesterday. The BOT agreement between the SLPA and CWIT is for a lease period of 35 years. Adani Ports and Special Economic Zone Limited (APSEZ) will have an equity stake of 51 percent of CWIT, while JKH and SLPA will have 34 percent and 15 percent stakes respectively.

The total project cost is envisaged to be approximated US$ 650 million with a debt to equity mix of approximately 70:30 and JKH’S equity commitment is estimated to be US$ 70 million,

which will be infused into CWIT on a staggered basis over the project construction period. The filing by JKH said CWIT expects to commence construction of the terminal early next year with phase 1 of the terminal, comprising of a quay length of 600 metres, slated to be operational within a period of approximately 24 months. The remainder of the terminal is expected to be completed with a further period of approximately 24 months. With a quay length of 1400 metres and a depth of 20 metres, WCT is set to become a prime destination for transshipment cargo and to handle ultra large container carriers. The Colombo Port is the most preferred regional hub for transshipment of Indian containers and mainline ship operators with 45 percent of Colombo’s transshipment volumes originating from or destined to an APSEZ terminal in India.

Signing of the agreement. Seated from left: Upul Jayatissa - Managing Director, Sri Lanka Ports Authority, Capt. Nihal Keppetipola - Chairman, Sri Lanka Ports Authority and Krishan Balendra - Chairman, John Keells Holdings PLC. Standing behind (left to right): U.D.C Jayalal - Secretary to the Ministry of Ports and Shipping, Minister Rohitha Abeygunawardena - Minister of Ports and Shipping and Gopal Baglay - High Commissioner for India in Sri Lanka.

Top left: Capt. Sandeep Mehta - President, Adani Ports and SEZ Ltd, Right: Karan Adani - CEO, Adani Ports and SEZ Ltd and Bottom left: Milinda Moragoda - High Commissioner for Sri Lanka in India