China Merchants Holdings International, which is building a deep-water container terminal in Colombo port, is also interested in investing in other ports in Sri Lanka; as well.
It is believed that the Chinese port operator, was drawn to the island on the main East-West shipping route, because of its “strategic advantages” like location, access to south Asia, open economy; and literate labor force.
China Merchants has committed an investment of 500 million US dollars, to build and operate a shipping container terminal, that will have an increased capacity of 2.4 million TEUs (twenty-foot equivalent container units).
“If Sri Lanka wants to keep its competitive position, well-equipped container terminals and modern procedures are badly needed.”
Investment by the major port operator will modernize and improve Colombo port‘s competitive position, as its existing water depth was not sufficient to accommodate bigger container ships; and its capacity was near saturation.