As the Colombo Port trade unions commenced a work to rule campaign on Friday, details have emerged that the East Container Terminal (ECT) management is likely to be given to the Adani Group apart from holding a 49 per cent stake in the proposed Terminal Operations Company (TOC). SLPA sources stated that during discussions with [...]

Business Times

ECT likely to be managed by Adani

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As the Colombo Port trade unions commenced a work to rule campaign on Friday, details have emerged that the East Container Terminal (ECT) management is likely to be given to the Adani Group apart from holding a 49 per cent stake in the proposed Terminal Operations Company (TOC).

SLPA sources stated that during discussions with the Cabinet Appointed Negotiating Committee (CANC) despite the fact that the Adani Group will constitute just 49 per cent in the TOC the SLPA has agreed to allow the Indian company to have management of the terminal with just board representation by the SLPA that will have 51 per cent of the company. This would in effect mean the SLPA will become a bystander in the running of the ECT.

However, new terms of the agreement between the SLPA and the Adani Group are being worked out in order to ensure that the ECT does not come under the scanner of Parliament. The state-owned SLPA will enjoy 51 per cent and that would mean it would come under the scrutiny of COPE of which the investors are not said to be happy about.

It is learnt that since the Adani Group is in partnership with MSC shipping line in Mundra it would pose a risk for the Jaya Container Terminal (JCT) whose main client is the MSC.

With Adani moving in it would result in eating into the JCT volumes as well as these vessels will then come into the ECT, it is believed. SLPA sources indicated that this would cause a “natural death” of the JCT.

With the new proposal the John Keells Holdings will also be a part of this TOC in addition to a Japanese player taking on a minority stake in the company as well, it was noted.

SLPA Chairman Gen. Daya Ratnayaka told the Business Times that the CANC meetings had been held regularly and that they were to submit their report by January 31 but this would be extended as new proposals are being taken up for consideration.

He noted that in the end they will be coming up with a “very good result in the best interest of the country.”

Meanwhile, the 23 port trade unions launched a protest at 12 noon on Friday afternoon and thereafter commenced a work to rule campaign at the Colombo Port.

The government party-backed trade union had been called for a discussion on Friday evening with the party’s founder Basil Rajapaksa to discuss about the issues surrounding the ECT and the proposals submitted by trade unions in this respect.

During these discussions the operations of the West Container Terminal (WCT) had been raised but the trade unions had insisted that this was a terminal that had already been part of the Asian Development Bank project that ensured it was run as a Public Private Partnership (PPP) wherein the government would hold only 15 per cent stake similar to the Colombo International Container Terminal. (SD)

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