Expansion Solutions
Project Advisory Services for Colombo South Harbour Project, Southern Terminal Development to Aitken Spence Maritime Ltd – Project Cost USD 200 Million
The Colombo South Harbour Project is a strategic initiative to expand the capacity and competitiveness of the Port of Colombo, the natural transshipment hub port for the South Asian region. The project involves the construction of three new terminals, each with a quay length of 1,200 meters and a depth of 18 meters, to accommodate the latest generation of container ships. The project also includes the dredging of a new two-way approach channel, the establishment of a new marine operations center, the relocation of a submarine oil pipeline, the provision of navigational aids, and the construction of shore utilities.
Aitken Spence Maritime Ltd, a leading maritime service provider in Sri Lanka, offering a comprehensive range of services such as port management, container handling, ship agency, logistics, bunkering, and cruise operations.
Aitken Spence Maritime Ltd was interested in participating in the Colombo South Harbour Project as a terminal operator, specifically for the East Container Terminal (ECT), which is the second-deep draft container terminal in the South Harbour with an annual capacity of 2.4 million TEUs1. The ECT is expected to be operational in 2025, with the first phase of 450 meters already completed by the SLPA1.
To support Aitken Spence Maritime Ltd in its bid for the ECT concession, we offered our project advisory services, which include:
Market analysis and demand forecasting: We conducted a thorough analysis of the current and future market trends and demand patterns for container traffic in the South Asian region, with a focus on the Indian subcontinent transshipment market, which is the main target market for the ECT. We also assessed the competitive landscape and the potential market share and revenue streams for the ECT.
Technical and operational feasibility study: We will evaluate the technical and operational feasibility of the ECT, including the design, construction, equipment, technology, and environmental aspects. We also identified the optimal operational and management strategies, such as the berthing policy, the tariff structure, the productivity and efficiency indicators, and the quality and safety standards.
Financial and economic appraisal: We conducted a financial and economic appraisal of the ECT, including the capital and operating costs, the financing options, the risk analysis, the cash flow projections, the financial ratios, and the economic benefits. We also prepared a detailed business plan and a financial model for the ECT, based on the assumptions and scenarios agreed with Aitken Spence Maritime Ltd.
Legal and regulatory compliance: We reviewed the legal and regulatory framework and requirements for the ECT, including the concession agreement, the port regulations, the customs and immigration procedures, the environmental and social safeguards, and the dispute resolution mechanisms. We advised Aitken Spence Maritime Ltd on the best practices and standards for compliance and governance.
Bid preparation and submission: We assisted Aitken Spence Maritime Ltd in preparing and submitting a competitive and compelling bid for the ECT concession, in accordance with the SLPA’s bidding guidelines and criteria. We also provided support during the bid evaluation and negotiation process, until the final award of the concession.
We successully provided Aitken Spence Maritime Ltd with the best value and quality for its investment in the Colombo South Harbour Project.
Our project advisory services are based on our extensive experience and expertise in the port and maritime sector, as well as our in-depth knowledge and understanding of the global market and context. We have a team of qualified and dedicated professionals, who have successfully delivered similar projects in the region and beyond.