Maersk expresses interest in developing ECT in Colombo Port in partnership with SLPA
Global shipping giant Maersk has reportedly expressed interest in developing the East Container Terminal (ECT) at the Colombo Port in partnership with the Sri Lanka Ports Authority (SLPA).
The increasing trans-shipment business at the Colombo Port has resulted in the need for enhancing its capacity.
According to reports, Maersk Group owns the world’s largest container shipping line, holding around 20% of global market share and operates over 70 container ports around the world with a vision to “lift global trade”.
Maersk Group has had long-term interests in the Colombo Port – already earning the distinction of being the largest foreign investor that helped to develop and grow Colombo’s South Asia Gateway Terminal (SAGT) together with Sri Lankan partner, John Keells Holdings (JKH), local media reports stated.
Further demonstrating its suitability for the ECT project, Maersk has single-handedly supported Malaysia to develop its trans-shipment port PTP near Singapore, which is now handling around eight million containers per year, report also noted.
Also, in Oman, Maersk is the commercial and operational partner developing the Salalah container port, which has over four million containers per year now.
Given the huge competitive pressure for trans-shipment business and Maersk’s track record as a politically independent partner in the region, the Government of Sri Lanka is evaluating Maersk as part of the solution to the challenge to fast-track the ECT project, local media reports added.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean has made Sri Lanka a maritime hub in the South Asian region. It is this reason that has given Sri Lanka much prominence in China’s Belt and Road Initiative. The Chinese have invested heavily in Sri Lanka due to the island’s location in the international maritime route. Sri Lanka’s trans shipment business has been on a continuous increase and is in need of increasing capacity to meet the increasing demand. This has resulted in an increase in business/investment opportunities in Sri Lanka’s ports and maritime sectors.
| Article Code : | VBS/AT/14082020/Z_1 |