Colombo’s West Container Terminal eyes cash-positive first year
The Morning: Colombo’s Adani-John Keells-owned West Container Terminal (WCT) is expected to achieve a cash-positive position within the first year of operations due to the rapid growth in regional container volumes and demand, John Keells Holdings (JKH) said.
In their 2024/25 annual report, JKH said that the first phase of the WCT, which is Colombo’s first automated deep-water terminal, commenced its commercial operations in the March quarter.
JKH said that given the anticipated rapid growth in regional container volumes and demand, the terminal has the potential to achieve a cash-positive position within the first year of operations, subject to the impacts on regional and global trade dynamics.
“Similarly, as growth accelerates quarter on quarter, it is expected that the run rate of volumes in the fourth quarter, if market dynamics remain, will enable earnings to be at breakeven,” JKH said in their annual report.
WCT welcomed its inaugural test vessel in February 2025 and received a mothership from a leading global shipping liner in April, which showcased its full operational capability.
The first phase of operations will increase the overall capacity of the Port of Colombo by 1.6 million TEUs, once scaled up.
“The throughput to date has been encouraging, and this momentum is expected to accelerate over the coming quarters,” JKH said.
The full completion of construction of the terminal is on track for the second half of 2026/27, and once fully operational, the terminal is expected to provide approximately 300 direct and 2,000 indirect employment opportunities.
JKH has a 34% stake in WCT and has so far invested Rs. 6.81 billion in the construction of the terminal. The terminal is expected to have a full capacity of around 3.2 million TEUs once fully operational.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean, the strong trade ties enjoyed with many foreign countries and the target of working towards becoming a regional hub in the South Asian region have all helped boost the country’s maritime industry and related sectors. Identifying the growing needs of the maritime industry and related sectors like ports, shipping and logistics, the Sri Lankan government has also initiated many programmes including development projects to further uplift, develop and expand the facilities and operations in the ports, shipping and logistics sectors. All these movements have opened up a host of business/investment opportunities as well. The growth and business potential of Sri Lanka’s maritime industry is evident by the foreign businesses from India and China that are already engaged in the local maritime industry and the growth and profits recorded by them through their operations in Sri Lanka. Given the many business/investment opportunities covering many sectors of the maritime industry, foreign businesses/investors could confidently explore the increasingly lucrative ventures in Sri Lanka’s maritime industry and related sectors.
| Article Code : | VBS/AT/20250605Z_1 |