Adani Colombo port terminal project to get USD 553 million funding US Development Finance Corporation latest updates

Image Source: INDIA TV US International Development Finance Corporation, an American development finance institution, to finance CWIT, Adani’s JV in Sri Lanka

Adani Group: The US International Development Finance Corporation (DFC) has announced that it will be financing Colombo West International Terminal Pvt. Ltd (CWIT) – a consortium of India’s largest port operator Adani Ports and SEZ Ltd., Sri Lankan flagship John Keells Holdings (JKH) and Sri Lanka Ports Authority – up to USD 553 million.

DFC, the US government’s development finance institution, is partnering with the private sector to finance solutions to the most pressing challenges facing the developing world. It invests across sectors, including energy, healthcare, infrastructure, agriculture and small business and financial services.

This is the first time that the US government, through one of its agencies, is funding an Adani project, which is a ringing endorsement of the Adani Group. It shows their confidence in the Group’s ability to invest and create a world-class container facility at the Port of Colombo.

“We welcome the association of the US International Development Finance Corporation (DFC), the US government’s development finance institution, in financing the Adani project – and we see this as a reaffirmation by the international community of our vision, capacity and governance,” said Mr. Karan Adani, Whole Time Director and CEO, Adani Ports and Special Economic Zone.

“As one of the world’s largest port developers and operators, APSEZ brings to this project not only our proven expertise but also our deep experience in infrastructure creation. Once completed, the Colombo West International Terminal project will transform the socio-economic landscape not only in Colombo but across the island, through thousands of new direct and indirect employment opportunities and a massive boost to Sri Lanka’s trade and commerce ecosystem .”

The Port of Colombo is the largest and busiest transhipment port in the Indian Ocean. It is operating at more than 90 percent utilization as of 2021, indicating a need for additional capacity. The new terminal will serve the growing economies of the Bay of Bengal, taking advantage of Sri Lanka’s prime location on major shipping routes and its proximity to growing markets.

“DFC works to drive private sector investments that promote development and economic growth while strengthening the strategic positions of our partners. That is what we are delivering with this infrastructure investment in the Port of Colombo,” said DFC CEO Scott Nathan.

“Sri Lanka is one of the world’s leading transport hubs, with half of all container ships moving through its waters. DFC’s commitment of $553 million in private sector loans to the Western Container Terminal will increase its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while strengthening the position of our allies across the region.”

US Ambassador to Sri Lanka Julie Chung said, “DFC’s $553 million investment in the long-term development of the Port of Colombo Western Container Terminal will facilitate private sector-led growth in Sri Lanka and attract critical foreign exchange inflows during its economic recovery. . If Sri Lanka succeeds in regaining its economic footing, it will further our shared vision for a free and prosperous Indo-Pacific.”

Krishan Balendra, Chairman, John Keells Holdings said, “DFC’s investment is an endorsement of the potential of the West Terminal project and boosts investor confidence as the Sri Lankan economy recovers”.

The Adani Group is expanding its global footprint through strategic investments in emerging markets. Adani Ports is positioned as a market leader in the transport logistics and energy utility portfolio businesses, focusing on large-scale infrastructure development in India with operations and management practices benchmarked to global standards. Through its continued commitment to creating great sustainable assets, the Group plays a vital role in building a better future for India and the world.

About Colombo West International Terminal Pvt Ltd:

Colombo West International Terminal Pvt. Ltd is a consortium. which includes India’s largest port operator Adani Ports and SEZ Ltd, Sri Lankan flagship John Keells Holdings and the Sri Lanka Ports Authority. The consortium will develop the Colombo West International Terminal (CWIT) on a build, operate and transfer (BOT) basis for a period of 35 years. The development of this terminal will strengthen Colombo Port’s position as the main hub of the region and is expected to increase its ranking to 20th place among the best container terminals in the world. It will also change the position of the port in terms of global shipping connectivity, which currently ranks 12th worldwide.

Once commissioned, CWIT will be the largest and deepest container terminal in Sri Lanka. With a quay length of 1,400 m and a lateral depth of 20 m, CWIT will be equipped to handle ultra large container vessels with a capacity of 24,000 TEU. The new terminal’s annual cargo handling capacity is likely to exceed 3.2 million TEU.

About Adani Ports & Special Economic Zone Limited:

Adani Ports and Special Economic Zone Limited (APSEZ) is part of the diversified Adani group, one of India’s leading business houses. It has evolved from a port company to an integrated transport utility, providing end-to-end solutions from port gate to customer gate.

It is India’s largest port developer and operator with six ports and terminals strategically located on the west coast of India (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and five ports and a terminal on the east coast (Dhamra in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamil Nadu).

APSEZ has the capacity to handle huge volumes of cargo from both coastal and hinterland areas, accounting for 24 percent of the country’s port volumes. The company is also developing two transhipment ports at Vizhinjam in Kerala and Colombo in nearby Sri Lanka. APSEZ’s port-to-logistics platform, which includes port facilities and integrated logistics capabilities, including multi-modal logistics parks, Grade A warehouses and industrial economic zones, puts India in an advantageous position to benefit from upcoming supply chain reform global supply. APSEZ aims to become the world’s largest port and logistics platform in the next decade. APSEZ is the first Indian port and the third in the world to sign up for the Science-Based Targets Initiative (SBTi), which commits emission reduction targets to control global warming at 1.5°C above pre-industrial levels to reverse carbon vision . neutral by 2025.

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