First Phase of CWIT Expected to Commence Operations by December 2024, Says Karan Adani

Karan Adani, the Whole Time Director and CEO of Adani Ports and Special Economic Zone (APSEZ), has announced that the first phase of the Colombo West International Terminal (CWIT) is likely to become operational by December 2024. The US International Development Finance Corporation (DFC) is set to provide USD 553 million in financing to Colombo West International Terminal Pvt Ltd, a consortium consisting of Adani Ports and SEZ Ltd, John Keells Holdings (JKH) from Sri Lanka, and the Sri Lanka Ports Authority.

During a conference call, Adani stated, "So, on the Colombo port, we expect commissioning and operationalizing of Phase 1 by December of 2024. Now, we have already given our...capex guidance." Adani Ports holds a 51% stake in the joint venture, with the remaining 49% shared by SLPA and John Keells.

The funding from the US DFC will support the development of a deepwater shipping container terminal at the Port of Colombo. The Port of Colombo, the largest and busiest transshipment port in the Indian Ocean, has been operating at over 90% utilization since 2021, indicating the need for additional capacity.

In response to a question about the Tajpur port in West Bengal, Adani mentioned, "We are still waiting for a letter of award...Once we get it, it will be 18 to 24 months before we start any construction over there since we have to go through the EC, environment clearance, as well as groundwork over there." The Tajpur port, located near Tajpur in the Purba Medinipur district, is about 200 km from Kolkata and is designed to accommodate large capesize ships.

Adani also addressed the international strategy of Adani Ports, stating, "We keep evaluating opportunities as and when it comes...As I said, we keep looking at countries, high-growth countries like Vietnam, Bangladesh, Eastern Africa as well as certain parts of the Middle East." He highlighted the significance of the India-Middle East-Europe Economic Corridor (IMEC) as a strategic move that would benefit both Haifa and Indian ports, providing an alternative route to the Suez Canal.

ET