Access-led JV bags Rs.43bn contract to construct East Container Terminal

• Access holds 51% of JV while China Harbour Engineering holds the rest being technical partner
• Construction to be completed in 36 months; commercial operations by May 2023

Access Engineering PLC (AEL), Sri Lanka’s leading construction enterprise in JV with its technical partner China Harbour Engineering, a world-renowned marine contractor, has been awarded the contract to construct the East Container Terminal (ECT) of the Sri Lanka Ports Authority (SLPA).

 
The project was advertised for competitive bidding where a local company was required to be the majority shareholder of a proposed JV with the requirement of major marine construction experience being contributed by the respective international partners. 

In this instance, Access holds 51 percent of the JV and is set to gain technical knowhow and experience of building large-scale marine construction projects. 

“We will strive to complete the project ahead of the scheduled 36 month contract period,” AEL Managing Director Rohan Fernando said.

He further stated that this may be the single biggest contract awarded to a Sri Lankan led JV and commended on how SLPA has promoted and given the opportunity for Sri Lankan companies to take part in such large infrastructure projects. 

Upon successful completion of the ECT project, Access Engineering would get required experience to compete for similar projects outside Sri Lanka. 

The ECT was originally planned to be commercially operational in 2016 and would be 08 years behind schedule when operations are earmarked to begin in 2023. 

The SLPA has fast tracked the bidding process and has set aside SLPA reserve funds, which allow them to own and operate the terminal. 

ECT is the second deep-water terminal to be developed since the Colombo International Container Terminal (CICT) started commercial operations in 2013. 

ECT expects to begin commercial operations with the development of its first 600m of birthing capacity scheduled to be completed by May 2023 while the full terminal development up to 1320m is scheduled to be completed by end of 2024 allowing a 3M TEU throughput capacity when fully operational.  

With the West Container Terminal concession already signed with Adani Ports, India and John Keells Holdings, it is expected add a further 3M TEU capacity by end of 2024. Therefore with a total of additional 6M TEU capacity available from 2025, Colombo Port is ready to become a premier transshipment hub giving much needed impetus to the Sri Lankan economy.