Adani Ports and Special Economic Zone saw its shares rally after the company received a Letter of Intent (LOI) from the Ministry of Ports and Shipping of Sri Lanka for the development and operations of West Container Terminal (WCT) in Colombo, Sri Lanka. The shares of the company were up 1 per cent in trade.
APSEZ will partner with John Keells Holdings PLC, Sri Lanka's largest diversified conglomerate, and with the Sri Lanka Ports Authority (SLPA) as a part of the consortium awarded this mandate.
"The WCT will be developed on a Build, Operate and Transfer basis for a period of 35 years as a public-private partnership. WCT will have a quay length of 1400 meters and alongside depth of 20 meters, thereby making it a prime transhipment cargo destination to handle Ultra Large Container Carriers.
The project is expected to boost WCT's container handling capacity and further consolidate Sri Lanka's locational advantage as one of the world's top strategic nodes along the busiest global transhipment route. The Colombo Port is already the most preferred regional hub for transhipment of Indian containers and mainline ship operators with 45% of Colombo's transhipment volumes either originating from or destined to an Adani port terminal in India," a press release from the company stated.