- Govt. eyes private investors
- Proposals received from major regional shipping lines
- 5th tender underway for 15 straddle carriers
- Equipment delivery could take another year
- 82–85% of civil construction completed
Four consecutive tender cancellations have held up the full commissioning of the Colombo Port’s East Container Terminal (ECT), with the Government now making a fifth attempt to procure 15 straddle carriers even as it explores handing over operations of the State-owned facility to a private operator.
With 82–85% of civil construction completed, the terminal faces a further wait of 10–12 months for the equipment to arrive after the contract is awarded, raising questions over repeated procurement failures at one of Sri Lanka’s key port development projects.
Speaking to The Sunday Morning, Ports and Civil Aviation Minister Anura Karunathilaka revealed that four previous tenders for straddle carriers had been cancelled for different reasons, while the fifth procurement process was nearing completion following negotiations with two bidders.
“The main issue is the procurement of equipment, particularly straddle carriers,” the Minister said.
He said that the Government expected to conclude negotiations and award the contract within approximately two months, particularly as the validity period of the current bids was approaching its expiry.
“We expect to complete the process within this year. The bid validity period is also approaching its end. Therefore, we need to complete the negotiations and award the contract within approximately the next two months,” he explained.
However, even if the contract is awarded within the anticipated time frame, the terminal will not be immediately ready for full operations.
“After awarding the contract, it will take another 10–12 months for the equipment to be delivered and become operational,” the Minister said.
Meanwhile, the Government is considering private sector participation in the operation of the ECT while retaining State ownership, with several proposals already received from prospective operators, including major international shipping companies.
The Minister confirmed that no investor or operator had been selected and that the Government was awaiting legal clearance before proceeding with an open competitive bidding process.
“Our intention is to retain ownership of the terminal while considering the possibility of granting operational rights to a private sector operator. That could involve a local company or an international partner,” he said.
According to Karunathilaka, the Government’s primary consideration in selecting an operator would be its ability to attract sufficient container volumes to ensure the terminal’s commercial viability.
“The most important consideration is the operator’s ability to attract sufficient container throughput,” he explained. The Minister said that several proposals had already been received, although he declined to identify the interested companies or their countries of origin.
“We have received several proposals from different companies. However, we have not selected an investor or operator,” he said.
He added that certain legal matters needed to be resolved before the Government could proceed with the proposed selection process. “We are awaiting the necessary legal clearance. Once those issues are resolved, we intend to proceed through an open and competitive bidding process,” he said.
The ECT, designed to handle approximately 2.4 million Twenty-foot Equivalent Units (TEUs) annually, comprises a planned 1,320-metre quay and a terminal area of around 75 hectares. Its first phase, including a 440-metre quay, was completed in 2015 at a cost of approximately Rs. 11.17 billion, although operations remained limited due to equipment shortages.
The terminal became the centre of political controversy following a 2019 agreement between Sri Lanka, India, and Japan to develop the facility under a 51:49 ownership arrangement. Following strong opposition, the then Government decided in February 2021 to develop and operate the ECT entirely under the Sri Lanka Ports Authority (SLPA).
Construction of the second phase commenced in January 2022, with an estimated project cost of $ 510 million, including $ 200 million from the SLPA. The development envisaged 12 ship-to-shore cranes and 40 rail-mounted gantry cranes.
According to the Auditor General’s report, the SLPA procured these 52 cranes for approximately $ 282.56 million. Although all equipment had arrived by June 2025, only six ship-to-shore cranes were operational at that stage due to infrastructure delays. Terminal capacity utilisation increased from 43% in 2021 to 63% in 2024.
Despite these constraints, the ECT handled more than 500,000 TEUs in 2025 and commissioned its third berth in 2026.
Meanwhile, Colombo Port recorded 8.29 million TEUs in 2025, up from 7.79 million TEUs in 2024, reflecting 6.4% growth. During the first half of 2026, throughput increased by 11.9% to 4.44 million TEUs, compared with 3.97 million TEUs during the corresponding period of 2025.
According to the SLPA, Colombo’s global ranking improved from 26th at the end of 2025 to 20th during the first half of 2026, highlighting the growing importance of bringing the ECT into full operation.