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East Container Terminal at Colombo Port: Finalising tenders for civil work

04 Sep 2021

  • Construction work expected to commence within next few months
  • Total cost of project and SLPA loan requirement yet to be finalised
By Maheesha Mudugamuwa The construction of the long-delayed East Container Terminal (ECT) of the Colombo Port is very likely to begin within the next few months, as the Ministry of Ports and Shipping is currently finalising tenders for the civil work and the procurement of necessary equipment, The Sunday Morning learnt. According to the Sri Lanka Ports Authority (SLPA), the estimated cost for the development of the ECT is around $ 500 million. However, Secretary to the Ministry of Ports and Shipping U.D.C. Jayalal said the initial construction work would be carried out with the funds available at the SLPA, and therefore, it wouldn’t be a burden to the Treasury. “A part of the ECT had already been completed. The rest would be completed within the next few years, and we are planning to commence construction work within this year. At present, we are finalising tendering for the civil work and the procurement of the necessary equipment for the terminal,” he said. The sooner the tendering process is completed, the sooner the Government could commence the construction work, the Ministry Secretary noted. When asked whether the construction work would be affected due to the financial crisis faced by the Treasury, Jayalal noted that the SLPA has enough funds to begin the construction. He said, however, that the total cost had not yet been finalised, as the tendering process was yet to be completed. Therefore, the amounts the SLPA is planning to obtain as loans were not clear as of now, he added. “It’s too early to predict the total cost; only once the tendering process is completed can we confirm the total estimated cost,” he added. The SLPA might obtain a loan based on its financial requirements in the future, he said, adding that the development work will be carried out under two categories: Infrastructure development and equipment development. The ECT gained much local and international attention early this year due to the protests launched by the port trade unions against the joint development of the terminal by Japan and India, which was agreed upon when a Memorandum of Corporation (MoC) was signed in 2019 between the three countries. However, due to the pressure from the trade unions, the Government had to withdraw its plans, and decided to keep and develop the ECT under the SLPA while handing over the development of the West Container Terminal (WCT) to India’s Adani Group. The ECT is the second largest deep-water project of the Colombo Port, and it is also part of the Colombo Port Expansion Project (CPEP), which is being implemented in an area spanning about 600 hectares. The Colombo Port currently consists of three main parts: The Jaya Container Terminal (JICT), which belongs to the SLPA; the South Asia Gateway Terminal (SAGT), which is owned by both Sri Lanka and international entities; and Colombo International Container Terminals Ltd. (CICT), which is located adjacent to the Colombo Port City and of which a majority of the shareholding is owned by China. As per the CPEP, there will be three terminals: The South Container Terminal (SCT), the ECT, and the West Container Terminal (WCT) – each having a length of 1,200 m and facilities to accommodate three berths, each. The SCT commenced operations in 2013 under a public-private partnership (PPP), on a build-operate-transfer (BOT) basis, with CICT and the SLPA. At present, the ECT consists of a 600-m-long quay wall, built with 440-m-long berthing facilities consisting of a 30 m rail span, a 20-m-wide back reach area with a two-lane road, and a free area with revetments and a capping beam. Of the planned 1,200-m-long terminal, 400 m was completed in 2015. At present, the completed 400 m stretch of the ECT is used by the SLPA to handle break-bulk cargo. Furthermore, a land-side crane rail and beam have also been built, and a container yard was constructed on reclaimed land, comprising 12 dry stack lanes and one reefer lane, with 30-m-wide yard peripheral roads. Also, a terminal tractor parking area corner revetment was built, and services and utilities were completed. Even though the Government claimed that it would commence the construction work within the next few months, concerns have been raised as to whether the Government could afford massive construction work worth millions of dollars at a time when the country is facing a massive financial crisis triggered by the Covid-19 pandemic. As alleged by the port trade unions, the Government, over the last few months, had said it planned to commence the operation, but has been unable to do so to date. As they claimed, the construction of the terminal was delayed for many years, and the delay caused the Government a loss of around Rs. 50 billion per year. Elaborating on the construction delays, Janatha Vimukthi Peramuna (JVP)-affiliated All Ceylon General Ports Employees’ Union (ACGPEU) Deputy General Secretary G. Niroshan said the work of a 400 m section of the ECT was completed by the SLPA at a total cost of Rs. 10.8 billion. “The civil engineering activities, the electrical aspect, as well as preparing the entrances have all been completed. All that is needed to be done is to install the necessary machinery,” he stressed. Explaining further, he said that even though the SLPA had funds, the former Government had no interest in developing the terminal, and instead were looking to sell it to some other country. “The Colombo South Terminal began because we wanted to have a port that could accommodate the large ships that are being built elsewhere in the world,” he stressed. He also alleged that in 2015, former SLPA Chairman Dhammika Ranatunga cancelled the tender called for obtaining machinery, claiming that it was corrupt, and later, former Minister Mahinda Samarasinghe didn’t do anything to negotiate the purchasing of machinery, which caused delays in launching operations. “There were many such instances, and the ECT got delayed mainly due to delays caused by the authorities. However, last year, after much effort, we were able to install the gantry cranes brought down to the JICT,” he added. Despite assurances given by the Government that it would go ahead with the construction work of the ECT, the authorities have failed to do so as yet, he reiterated.


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