The construction work of the Eastern Container Terminal at the Colombo Port is being presently undertaken as a special project under the instructions of Minister Vijitha Herath, and steps being taken to ensure its swift completion
The Colombo Port’s East Container Terminal had been a highly discussed topic in the country until recently. Construction on this terminal, which began in January 2022, was anticipated to take several years to complete, with no clear end in sight. According to the current status, the construction activities have been extended until November 15, 2026. However, under the guidance of the Honourable Minister of Transport, Highways, Ports, and Civil Aviation, Vijitha Herath, significant intervention has been made, and officials have been instructed to expedite construction efforts to complete it by June 30, 2025.
“Construction work on the Eastern Container Terminal.”
Special attention has been given for the construction of the East Container Terminal, with tax relief provided to expedite its completion. Cabinet approval has been granted for a tax reduction of around 20% on the USD 750 million required for construction and equipment imports for the terminal. The Port Authority, which is funding the entire project, has noted that without this relief, it could face a severe financial crisis. As part of the project, 12 Ship-to-Shore (STS) cranes and 40 automated terminal cranes have been ordered. Management states that, of these, six STS cranes and 20 terminal cranes have already been received. With the completion of the East Container Terminal expected by mid-next year, the Colombo Port is anticipated to become highly efficient, significantly contributing to national revenue, according to administration officials, who express strong confidence in this outcome.
Additionally, the Minister has instructed that procurement for 30 straddle carriers for container handling between the terminal and the jetty be completed swiftly. Instead of the proposed diesel-operated straddle carriers, the Minister has recommended obtaining environmentally friendly, hybrid models with modern technology, following a recommendation from a suitable technical evaluation committee. As a result, preparations are moving quickly to start operations at the East Container Terminal by mid-next year, and there is an optimistic outlook among all Port Authority employees regarding this progress.
