With Colombo’s container volumes rising and regional competition intensifying, the unfinished operational transition at the Colombo East Container Terminal (CECT) raises questions about procurement delays, management decisions, and the port’s ability to retain future shipping business.
The Sri Lanka Ports Authority’s (SLPA) ‘CECT Operational Plan and Transformation Progress Update Report’ of August 2026 warns that Colombo risks losing cargo to regional hubs such as Dubai and Singapore, projecting that port throughput could fall about 3.2 million Twenty-foot Equivalent Units (TEUs) short of regional demand by 2035 even if CECT reaches its full planned capacity.
The controversy surrounding the East Container Terminal (ECT), now known as CECT, is a telling example of how nationalism and the fight to protect national interests can prevail politically but do not necessarily translate into results on the ground.
In 2019, Sri Lanka signed a tripartite Memorandum of Cooperation with India and Japan to develop and operate the terminal, with the foreign partners expected to hold a 49% stake. However, following sustained protests by Colombo Port trade unions and wider opposition to foreign involvement in a strategic national asset, the Government abandoned the arrangement in February 2021, deciding that the terminal would remain fully under SLPA ownership and operation.
Yet, more than five years later, the CECT is still not fully operational as a complete, autonomous facility, despite having commenced partial operations.
In November 2025, Parliament’s Committee on Public Enterprises highlighted a 548-day construction delay at the CECT and a contractor’s compensation claim of Rs 4.227 billion. The latest SLPA document identifies further delays linked to outstanding procurement, infrastructure, systems, and staffing requirements.
The CECT is transitioning towards a semi-automated operating model, but several equipment, infrastructure, systems, and human resources requirements remain outstanding. The document outlines the terminal’s operational background, equipment programme, market forecasts, financial potential, and measures proposed to complete commissioning.
It also sets out a four-phase commissioning and testing programme covering August 2026 to June 2027, alongside a nine-point action programme for consideration by SLPA management and the board.
Background and operational development
The CECT began container operations on 29 October 2020. It moved towards a semi-automated operating model on 13 May 2024, with manpower arrangements initially outsourced. Supporting operational, human resources, and marketing plans were subsequently prepared to facilitate the transition.
Five areas require further progress: productivity, infrastructure, terminal operating system implementation, human resources recruitment, and equipment deliveries.
Located within the Port of Colombo alongside existing container operations, the CECT also has an identified 800-metre expansion pathway associated with the proposed North Port development.
A Cabinet decision in February 2021 provided for the CECT to be developed and operated wholly by the SLPA. The latest document recommends formally reaffirming this arrangement at board level as part of implementing the terminal’s proposed operating model.
Equipment and technology
Twelve Ship-To-Shore (STS) cranes and 40 Automated Rail-Mounted Gantry (ARMG) cranes have been delivered under an equipment programme valued at $ 282 million. The Navis N4 Terminal Operating System and ABB automation platform have also been deployed.
The terminal’s design includes automated gates, an automated container yard, remote operations, and a command centre. It provides for 12 STS cranes, with space for two additional cranes, and 40 ARMGs, with provision for a further 12. The planned yard includes 12,700 ground slots, with provision for another 3,800, and 1,042 reefer slots, including capacity associated with integration of the Rubber-Tyred Gantry (RTG) yard.
A target of 32 or more container moves per hour at the optimum operating stage has been set. Achieving this target depends on equipment testing, process validation, operational dry runs, and continuous optimisation under the Master Testing Plan.
However, procurement of straddle carriers remains a key outstanding requirement. These vehicles form part of the planned equipment arrangement for transferring containers between the quay and the yard.
The workshop and accommodation buildings, gate works, equipment repair and maintenance arrangements, and additional supporting systems are also outstanding. The proposed action programme calls for accelerated procurement and construction decisions on these items.
Terminal systems and commissioning
Further work is required on the Electronic Container System (ECS), repair and maintenance services, and other supporting systems. The document recommends beginning the relevant tenders while progressively integrating these systems with the Navis N4 and ABB platforms already deployed.
The Master Testing Plan is divided into four phases. The first covers preparation of test teams and testing of individual events across six functional groups, including data entry, vessel planning, yard operations, equipment control, transfer operations, and gates and billing.
The second phase involves end-to-end testing of core operational processes, including loading, discharging, receiving, and delivery. The third covers full operational dry runs, billing and reporting validation, issue resolution, and retesting.
The fourth phase involves live equipment testing and operational review, with completion scheduled for June 2027.
The plan also allows for live operations in a possible interim configuration before the straddle carriers arrive. This is intended to enable suitable terminal activities to commence while the remaining equipment is delivered, subject to operational configuration and testing requirements.
Human resources and supporting services
Completing the human resources framework is another requirement for the CECT’s operational transition.
Outstanding approvals include the organisational structure, human resources policy, Scheme of Recruitment, and salary structures. The proposed actions also include standardising arrangements involving manpower companies and restarting recruitment and training within the current quarter identified in the action programme.
Although implementation of the HR plan was delayed following a change in project direction, much of the preparatory work remains relevant and can be updated rather than developed from scratch. Recruitment cannot begin until the required approvals are secured. These are also necessary to schedule training in line with the commissioning phases and formally release experienced staff from the Jaya Container Terminal (JCT) to the CECT.
Pending work includes finalising cadre numbers by grade and cluster in line with the CECT operating model, aligning recruitment phases with the commissioning schedule, and establishing intake numbers for four training channels: JCT on-the-job training, Mahapola Ports and Maritime Academy, Original Equipment Manufacturer (OEM) training, and simulator training.
Supporting services, including lashing, food court, and janitorial services, are also included in the recommended administrative actions. Recruitment, training, and selection of service providers are expected to proceed alongside equipment procurement and systems testing.
Revenue potential and financial information
The CECT could generate approximately $ 180 million in annual revenue when fully operational, according to one estimate in the document. Its executive summary and financial assessment also refer to annual revenue potential of approximately $ 200 million.
These are projections for full operation rather than reported earnings to date. The CECT’s throughput is listed at approximately 560,000 TEUs in 2025. No consolidated cumulative figure is provided for the terminal’s revenue or net profit since container operations began in October 2020.
The financial assessment compares the contributions of the SLPA-operated JCT with receipts from privately operated terminals. The JCT’s contribution over 2021–2025 is stated as Rs 63.2 billion, compared with a combined Rs 62.5 billion from South Asia Gateway Terminals (SAGT) and Colombo International Container Terminals (CICT) over the same period.
It also records corporate tax payments of Rs 14.6 billion by the JCT during 2019–2025, compared with Rs 1.4 billion for CICT. These figures relate to the terminals named and are not the CECT’s own earnings.
Financial reporting and funding arrangements are among the matters to be addressed as the CECT moves towards full commercial operation. A separate account of the terminal’s actual income, operating costs, capital expenditure, and remaining completion costs would be needed to establish its cumulative financial performance.
Colombo’s container volumes and demand forecasts
The Port of Colombo handled approximately 8.3 million TEUs in 2025, an increase of 6.4% over 2024. Throughput is projected to exceed 10 million TEUs in 2027.
The document also refers to the development of the Colombo West International Terminal (CWIT), which began operations in April 2025. The CWIT handled more than 1 million TEUs during its first year and is expected to continue expanding towards its planned capacity.
The CECT’s projected throughput is expected to rise from approximately 0.56 million TEUs in 2025 to its design capacity of 3.5 million TEUs by 2035. Existing terminals, including the JCT, SAGT, and CICT, are expected to operate close to their practical capacity levels over the forecast period, while the CWIT completes its planned ramp-up by 2030.
Regional potential demand is estimated at 17.13 million TEUs by 2035, compared with projected Colombo throughput of 13.95 million TEUs, even with the CECT operating at its planned capacity. This leaves a potential difference of approximately 3.2 million TEUs between regional demand and the volume Colombo could handle.
The document warns that this shortfall could result in cargo being diverted to competing regional hubs, including Singapore and Dubai. The figure is a long-term forecast of potential unmet demand; it does not establish that this volume has already been diverted from Colombo.
Marketing and shipping line engagement
A marketing plan was prepared following the CECT’s transition towards the semi-automated model in May 2024. The proposed actions call for its reactivation and structured engagement with shipping lines and alliances before full commissioning.
The planned engagement includes discussions on berth windows, tariffs, commercial operating terms, and value-added services. These include empty container pooling, Delay-in-Transit (DIT) container handling, and container reworking.
Integration of the manual RTG yard with the CECT Terminal Operating System is also identified as a way to support these services and provide access to additional reefer capacity.
The document recommends communicating accurate commissioning timelines to shipping lines and maintaining regular dialogue on terminal readiness and planned services.
Actions proposed for completion
The nine-point action programme recommends that the SLPA Board reaffirm full SLPA ownership and operation of the CECT, consistent with the Cabinet mandate described in the document.
It calls for an accelerated timetable for straddle carrier procurement and decisions to move the workshop, accommodation building, and gate works towards award and construction. It also recommends beginning tenders for the ECS, repair and maintenance services, and other supporting systems.
The remaining actions cover approval of the consolidated human resources package, adoption of the Master Testing Plan, establishment of commissioning governance, reactivation of the marketing plan, completion of supporting service selections, and monthly progress reporting to the chairman.
The proposed governance arrangements include a terminal commissioning steering committee chaired at chairman level, a single accountable commissioning head, and weekly operational reviews involving operations, engineering, finance, information technology, and human resources. A monthly dashboard would track testing, equipment availability, procurement milestones, staffing mobilisation, and productivity indicators.
The commissioning window covered by the Master Testing Plan runs from August 2026 to June 2027. The proposed measures are intended to coordinate the outstanding procurement, infrastructure, systems, staffing, and commercial activities within that period.
Action programme for CECT
- Full reaffirmation of SLPA ownership and operation of CECT by SLPA Board, consistent with Cabinet mandate
- An accelerated timetable for straddle carrier procurement and decisions to move workshop, accommodation building, and gate works towards award and construction
- Beginning tenders for Electronic Container System, repair and maintenance services, and other supporting systems
- Approval of consolidated human resources package
- Adoption of Master Testing Plan
- Establishment of commissioning governance
- Reactivation of marketing plan
- Completion of supporting service selections
- Monthly progress reporting to chairman
SLPA staff officers and engineers raise concerns
The Joint Executives’ Alliance of the Sri Lanka Ports Authority (SLPA), comprising the Staff Officers’ Association and the Engineers’ Association, has raised concerns over the development, operational arrangements, and future capacity of the Colombo East Container Terminal (CECT), urging President Anura Kumara Dissanayake to address issues affecting the terminal and the country’s maritime interests.
In a letter dated 20 October, the associations outlined concerns relating to the terminal’s development, infrastructure, equipment requirements, operational capacity, and management arrangements. They also examined the CECT in relation to other container terminals at the Colombo Port, including Colombo International Container Terminals (CICT) and South Asia Gateway Terminals (SAGT).
The letter highlights the importance of ensuring that the CECT’s development supports the SLPA’s operational interests and Sri Lanka’s position as a regional maritime and transshipment hub.
It also refers to container handling performance at existing terminals and sets out projections for the CECT’s future growth. A chart included in the document, titled ‘CECT Volume Ramp-Up – Capacity Build-Out Drives Growth (2025–2035),’ projects container volumes reaching approximately 3.5 million TEUs by 2035. The chart identifies 1.5 million TEUs as the first-stage capacity and 3.5 million TEUs as the full design capacity.
The associations also discuss equipment and infrastructure requirements, including straddle carriers, and raise questions about the operational arrangements needed to support the terminal’s planned capacity. The letter further addresses private sector participation and public-private partnership arrangements in port development.
The representations to the President call for attention to the issues surrounding the CECT’s development and operation, with emphasis on protecting the SLPA’s interests and ensuring that port development serves Sri Lanka’s long-term maritime objectives.