Sri Lanka’s aspiration to become a major logistics hub in the region took a giant leap forward recently with the launch of a project to build the largest commercial and logistics complex in South Asia in the Port of Colombo with an investment of US$ 392 million. Agreements for the construction and operation of the [...]

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Sri Lanka to build large logistics complex in Colombo Port

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Sri Lanka’s aspiration to become a major logistics hub in the region took a giant leap forward recently with the launch of a project to build the largest commercial and logistics complex in South Asia in the Port of Colombo with an investment of US$ 392 million.

Agreements for the construction and operation of the South Asia Commercial and Logistics Hub (SACL) as a 50-year Build-Operate-Transfer (BOT) project were formally signed in Colombo by representatives of the three investing entities, with China Merchants Port Holdings (CMPort) holding a 70 per cent stake, and Sri Lanka Ports Authority (SLPA) and Access Engineering PLC (Access) each holding a 15 per cent stake in the venture, according to a CMPort media release.

A Public Private Partnership (PPP) project, the South Asia Commercial and Logistics Hub will be built in the centre of the Port of Colombo and will have 530,000 CBM of storage capacity via an eight-floor building. The investment in the project will bring in much-needed foreign investment into Sri Lanka.

Construction of the complex is expected to begin in the second half of 2023 with a target of completion by end 2025. Adjacent to Port City, it will be directly linked with the airport via the Port Access Elevated Highway. The five million square foot complex will offer the full gamut of logistics related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), General warehousing and various other value-added services.

A spokesperson for CMPort said the project will result in an infusion of $126 million in addition to an upfront payment of $26 million after the agreement is signed. The project is also expected to provide direct employment to a minimum of 1,800 people and create 10,500 other indirect job opportunities.

The project is expected to help the Port of Colombo to strengthen its competitiveness against other competing ports in the region. Furthermore, the improved services and cost benefits provided by the project are expected to attract more business and container volumes to the Port of Colombo, benefitting all its terminals and generating higher revenues for the Port and port-related companies in Sri Lanka.

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