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China Merchants International, a Hong Kong listed Chinese state-run firm which has a 55 stake in the terminal company said the deal was signed on August 12, concurrently with a visit of Sri Lanka president Mahinda Rajapaksa to China.
"…[T]he project will have a handling capacity of 2.4 million TEUs, thus further anchoring the Port of Colombo’s position as a trans-shipment hub in South Asia," a CHMI statement quoted China Merchants group chairman Fu Yu Ning as saying.
Colombo listed Aitken Spence owns 30 percent of CICT, the joint venture terminal company, and the SLPA owns 15 percent.
The firm will build a 1,200 meter long quay with a land area of 58 hectares on Colombo's new South Harbhour, costing 500 million dollars, China Merchants International said in a statement.
The first phase is to be completed by 2013. CMHI says it now manages or has invested in terminals in China and Hong Kong that handle