Colombo Goes Deep
The major expansion rolling out at the Sri Lankan port of Colombo is underway in earnest, with the first phase of the first new terminal having opened in August. The port is being developed with an eye to capturing growing Indian transhipment trade. Although we note significant challenges to this, not least in the fact that India is slackening its restrictive cabotage laws for a number of facilities on the mainland, which would remove one of Sri Lanka's key advantages, we believe that the facility will be a success, as a result of its draught, the deepest in the region. Nevertheless, the additional capacity set to come online once the whole expansion project has been completed is huge, and it will be some time before these volumes are troubled.
Stage One Complete
The first phase of the Colombo International Container Terminals (CICT) has been completed. The terminal is part of a massive expansion project at the Sri Lankan port of Colombo, which will add 7.2mn twenty-foot equivalent units (TEUs) worth of capacity to the port at the Colombo South Harbour. The extra capacity will be made up of three different terminals of 2.4mn TEU capacity each, the first of which is the CICT. Set to be fully completed in 2014, the first phase can handle 800,000TEUs, with the remainder set to be added in two more equal parts.
|A Growth Market|
|India's Total Ports TEU Handling Volumes|