FCC

US DFC to fund Adani-led deepwater terminal in Colombo

2023-11-14

In response to China's expanding influence in the region, the US International Development Finance Corporation (DFC) is set to provide $553 million in funding for the development of a deepwater shipping container terminal at the Port of Colombo. This joint venture is undertaken by Colombo West International Terminal (CWIT), a consortium comprising Adani Ports and SEZ (APSEZ), Sri Lanka's John Keells Holdings (JKH), and the Sri Lanka Ports Authority. The terminal, operating on a build, operate, and transfer (BOT) basis for 35 years, aims to counterbalance China's growing presence in the area.

This marks a significant milestone as it is the first time a US government agency is financing an Adani project, offering relief to the conglomerate amidst scrutiny following the Hindenburg allegations earlier in the year. Described as a "transformative West Container Terminal project in Colombo" by Gautam Adani, chairman of the Adani Group, the initiative is expected to generate substantial employment opportunities, stimulate economic growth, and enhance regional shipping capacity.

The development of Colombo West International Terminal (CWIT) is poised to strengthen Colombo Port's standing as the primary hub in the region, potentially elevating its rank to the 20th position among the world's leading container terminals. Additionally, it is anticipated to reshape the port's global shipping connectivity, currently ranked 12th globally. Once operational, CWIT will emerge as Sri Lanka's largest and deepest container terminal, boasting a quay length of 1,400 meters and an alongside depth of 20 meters. Equipped to handle ultra-large container vessels with capacities of 24,000 TEUs, the new terminal's annual cargo handling capacity is projected to surpass 3.2 million TEUs, according to a statement from the Adani Group.?