China Merchants Holdings Signs Deal To Invest In Sri Lankan Port

Aug 12, Colombo: One of the largest port operators in the Asian region, the Hong Kong-based China Merchants Holdings International (CMHI) has finalized a deal to build and operate a container port in the Sri Lankan capital of Colombo, a Dow Jones news report said.

The Company has signed a deal to invest more than US$500 million to build and operate a container port in Colombo. The blue-chip conglomerate has a 55% share in the project.

Under the first phase, a new terminal being built is scheduled to begin operations in early 2013, the company said in a statement.

The terminal is also being built by the same Chinese contractor that built the Hambanthota port complex - China Harbour Engineering Company (CHEC) and Sino Hydro Corporation.

The Chinese company and Sri Lankan conglomerate Aitken Spence entered into a non-binding agreement with the Sri Lanka Port Authority to design, construct, develop, manage, operate, and transfer the South Container Terminal at the Port of Colombo, with a designed capacity of 2.4 million TEUs.

Aitken Spence will hold a 30% stake in the project, while the Sri Lankan port authority will hold the remaining 15% stake.