Japanese delegation in Sri Lanka to discuss joint working group to develop ECT at Colombo Port
A Japanese delegation has reportedly arrived in Sri Lanka to discuss and set up a joint working group to develop the East Container Terminal (ECT) at the Colombo Port.
“The group is currently in discussion to determine what the working group should look like,” Chairman, Sri Lanka Ports Authority (SLPA), Kavan Ratnayaka has been quoted as saying in the local media.
Sri Lanka, Japan and India in last month jointly signed a Memorandum of Cooperation (MoC) to launch the development of the ECT project.
Accordingly, the three governments are expected to work out details based on the MOC at joint working group meetings, and advance their cooperation towards early commencement of work and operation of the ECT.
Ratnayaka has noted that the SLPA retains 100% ownership of ECT and the Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51% stake, and the joint venture partners to purchase a 49% stake.
According to reports, the envisaged Japanese loan carries one of the best loan terms Sri Lanka has obtained and the 51% stake is also one of the best in SLPA joint ownership endeavors.
The SLPA’s majority ownership in the new TOC represents a significant step in prioritizing National Interests, Ratnayake has told a meeting held at the SLPA.
Explaining the rationale behind the ECT project and the model they are currently working on, Ratnayaka has reportedly said that it is vital to retain the Colombo’s dominant position as a hub port in the region with modern expansion programs.
The National Port Master Plan funded by the Asian Development Bank (ADB) has stated that the Colombo Port is a leader in the Indian Ocean as a transshipment hub port and should stay competitive with other national and international transshipment ports.
OSL take:
The government of Sri Lanka is working towards achieving maritime hub status for the country in the Indian Ocean region. In order to achieve this target, Sri Lankan authorities have to also focus on operational excellence in marine services, cargo handling service, auxiliary functions and international traffic. Sri Lanka has the advantage of its geographical positioning in the Indian Ocean and the strong bilateral and trade ties enjoyed by the island nation with foreign countries. The drive to make Sri Lanka a maritime hub in the Indian Ocean region has created many investment opportunities in Sri Lanka’s ports and shipping sector.
| Article Code : | VBS/AT/19062019/Z_10 |