 SLPA to complete Phase I with no India, Japan involvement Operations of the first phase of the East Container Terminal (ECT) of the Colombo Port are scheduled to commence within the next three months, Sri Lanka Ports Authority (SLPA) stated. “Although work on the trilateral project was to commence by March 2020, no work has commenced as there have been several discussions between the countries on the way forward and regarding the clarity of the Memorandum of Co-operation (MoC). Hopefully, we will be able to complete the project in two to three years’ time. For the moment, the SLPA will complete the remaining 60% of the work of the first phase of the ECT, so that the section can be put to use in the coming months,” SLPA Chairman Gen. (Retd.) R.M. Daya Ratnayake said. According to Ratnayake, quay cranes and other yard machinery required in order to commence operations in the project’s first phase will be sourced by the SLPA in the coming weeks. The structural work of Phase I was completed in May 2015 with a loan worth $ 80 million from Bank of Ceylon (BOC). Part of the terminal is equipped with a 440 m quay berth and an 18 ha yard in addition to other equipment of which work has been stalled since 2016 due to inconsistent policy decisions. The first phase of the ECT is expected to have a capacity of handling 0.81 million twenty-foot equivalent units (TEUs) upon the completion of construction. On 28 May 2019, Sri Lanka signed a MoC with India and Japan for the joint development of it. The SLPA is to retain 100% ownership of the ECT, while all operations at the terminal are to be jointly owned. Sri Lanka will retain 51%, while the balance of 49% stake will remain among the joint venture partners, India and Japan. The terminal development project is estimated to cost between $ 500 million and $ 700 million. It is said that a major portion of financing for the project will come from Japan’s Official Development Assistance (ODA) programme. As part of the agreement, Japan has agreed to provide a concessionary yen loan at a 0.1% interest with a 10-year grace period and 40-year tenure. Details of India’s contribution to the initiative are awaited, but New Delhi’s interest in partnering the project is well known as a large chunk of (over 70%) of the transshipment business at the strategically located ECT is linked to India. Moreover, India is keen to enter into a market that has seen large-scale Chinese investments in maritime infrastructure in recent years. The ECT project features three berths with a total quay length of 1,200 m (3,937 ft), a draft of 18 m, and a capacity of 2.4 million TEUs annually. The depth of the ECT, at 18 m, allows it to handle container shipments, adding to its value with clear operational advantage. The ECT will be used for handling container shipments and to berth massive ships and oil tankers.