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The US Government’s development finance organisation, the Development Finance Corporation (DFC), has announced that it will be funding the deepwater Colombo West International Terminal (CWIT), which is being developed by a consortium made up of India’s largest port operator Adani Ports and SEZ; Sri Lanka based John Keells Holdings (JKH); and the Sri Lanka Ports Authority. The infrastructure development loan sum involved is reported to be over US$ 550 million.
DFC Chief Executive Officer (CEO) Scott Nathan said: “Sri Lanka is one of the world’s key transit hubs, with half of all container ships transiting through its waters. DFC’s commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same time strengthening the position of our allies across the region.”
The $553 million investment by DFC in the long-term development of the West Container Terminal is expected to facilitate private sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery.
The Port of Colombo, the largest and busiest transshipment port in the Indian Ocean, has been operating at more than 90% utilisation since 2021, signalling its need for additional capacity. The new terminal will cater to the requirements of growing economies in the Bay of Bengal, taking advantage of Sri Lanka’s strategic position on major shipping routes and its proximity to these expanding markets.
When commissioned, CWIT will be the largest and deepest container terminal in Sri Lanka, with an annual throughput capacity of over 3.2 million TEU. With a quay length of 1400m and an alongside depth of 20m, CWIT will be able to handle container vessels up to 24,000 TEU size.
