China Merchants Port Holdings said it is teaming up with Sri Lanka’s Access Engineering and Colombo port to set up a 392 million dollar logistics centre as a build operate transfer project.
outh Asia Commercial and Logistics Hub, will be a 50-year build operated transfer project with CM Port holding a 70 percent stake and Access Engineering and Sri Lanka Ports Authority holding 15 percent each.
The statement said the project will “result in an infusion of US$ 126 million in addition to an upfront payment of US$ 26 million after the agreement is signed.”
An 8 storey building with a 530,000 cubic metre capacity will be built in the centre of Colombo port. Construction will begin in the second half of 2023 and is expected to be completed by end 2025.
It will be linked to the Katunayake airport via a port access elevated highway.
If will offer services including multi-country consolidation. Container freight station, general warehousing and value added services.
Colombo port has been declared as a ‘freeport’ by the Government of Sri Lanka.
The “will enjoy the associated Freeport advantages in its operations, such as no customs clearance for transshipment and MCC cargo, resulting in reduced paperwork and associated costs,” the statement said.
“The project also provides an ideal platform for the registration of hub companies – which will enjoy tax concessions in CIT, WHT, VAT, etc.”