China Merchants in $601m Phase II of Sri Lanka’s Habmbantota Port!

China Merchants Holdings (International) Co has entered into an agreement to develop a container port project in Sri Lanka with partners for a total investment of $601m.

China Merchants has formed a joint venture with China Harbour Engineering and signed an agreement with Sri Lanka Ports Authority (SLPA) to develop the container terminal in Phase II of the Hambantota Port Development Project.

The container terminal will add two 10,000 dwt container berths and two 10,000 dwt feeder berths.

The Chinese joint venture will invest $391m out of the total of $601m, allowing them to take a 64.98% stake in the project.

The concession period to be granted to the operators under the agreement is for an initial 35 years from the commencement of operation, with an option for a five-year extension.