Colombo:The Sri Lanka Ports Authority (SLPA) has announced plans to develop a new logistics hub within the Port of Colombo using a Public-Private Partnership (PPP) model. This decision follows the termination of a previously proposed joint venture.

According to News.LK, the earlier project, named the South Asia Commercial and Logistics Hub (SACLH), was initiated in 2023 with China Merchants Port Holdings Company Limited, the SLPA, and Access Engineering PLC as participants. The project had projected an investment of approximately US$ 280 million for creating a modern logistics facility with an estimated floor area of around 150,000 square meters.

Due to an assessment of external circumstances, commercial considerations, and shareholder interests, the parties chose to discontinue the initial project. Shareholders will receive refunds of their equity contributions, amounting to about US$ 29.8 million, after considering applicable regulatory requirements and operational expenses.

The SLPA will now explore an alternative strategy through a competitive bidding process, pending necessary approvals. The new integrated logistics hub aims to enhance the Port of Colombo’s offerings beyond container transshipment by providing a broader range of port-related and value-added logistics services.

The initiative is expected to draw private-sector investment, optimize port land and infrastructure use, generate sustainable long-term revenue, and bolster Colombo’s status as a premier maritime and logistics hub in South Asia.