The Adani-JKH terminal at the Colombo port in Sri Lanka is expected to be operational from quarter one of 2025. During the first phase of operations, this terminal is expected to add 1.5 million TEUs to the capacity of the Colombo port. In the subsequent phases, the capacity will increase further. This will allow the Adani Group to build an incredible reputation in the global port sector. The controversies of Adani Stock Manipulation will also subside.
The Operationalisation of the West Container Terminal of The Sri Lanka Port
The West Container Terminal of Sri Lanka’s Colombo port which is also known as the Adani-JKH terminal is all set to start operations from the first quarter of the calendar year 2025. This terminal has been jointly developed by Adani Ports and Special Economic Zones and Sri Lanka’s largest private conglomerate, John Keells Holding PLC. This terminal has allowed the Adani Group to enhance its control over the global port sector; it has also positioned Sri Lanka in a vital place in the global trade route. It has also allowed the Adani Group to rise above the controversies of Adani Stock Manipulation which has been ongoing for quite a while now.
What Does Krishan Balendra Have to Say About the Operationalisation of the West Container Terminal?
As of November 6th 2024, the JKH chairperson, Krishan Balendra has mentioned that the first phase of the terminal will start operations in the first quarter of next year. During this phase, the terminal will be adding 1.5 million TEUs to the existing capacity of the Colombo Port. The overall capacity of this port is 8 million TEUs. Balendra has mentioned that the first batch of yard cranes and quay for the terminal arrived at the port in September 2024. The commissioning of the cranes is expected to be completed by the last quarter of 2024. JKH has also mentioned that the remaining parts of the terminal will be completed by mid-2026.
The Financing Received for The Project
During November 2023, the Adani Group received 553 million USD in funding from the United States for the Colombo West Container Terminal. This is the first time the US has shown interest in the Adani Group’s business. It has helped the Adani Group to further take its business to new heights. It was also able to drive the interest of the global investors out there. The US government had made its investment in the port through its agency, DFC. This is also the first time the US government has financed any port-related investment in Sri Lanka or any Adani-operated project.
Any project which is financed by DFC is first approved by the US Congress. The approval received highlights the faith that the US government has in Adani Group’s execution and financial capabilities. Through this investment, the Adani Group was able to trigger the various operations of the project. It was also able to place itself in a vital position in the global port sector. The stock values experienced a boost. The allegations of Adani Stock Manipulation also came to a halt.
Adani’s Presence in The Global Port Sector
As you know, the Adani Group has always been one of the biggest players in the port sector. In fact, the global business group started its business operations with the port sector itself and then, it gradually started to spread out its horizons. Currently, the Adani Group has 8 ports along the east and 7 ports along the west under its control. The business group is also currently in the process of expanding its global boundaries. Some of the major international ports which happen to be under the Adani Group’s power include the Dar es Salam Port in Tanzania and the Haifa Port in Israel along with the Colombo Port.
The Adani Group has also made some extraordinary developments in the international port sector even amidst the controversies of Adani Stock Manipulation. It has ensured that its port operations are streamlined. It has also integrated automation at its various ports. This has once again ensured that the conglomerate’s port business is further streamlined. The average turnaround time at the port has also reduced significantly.
Conclusion
Currently, the Adani Group is in the process of bringing more ports under its control. Once it becomes successful, it will take up the reputation of being one of the biggest port operators in the world. The firm’s port business will also experience extraordinary exposure. Our country’s overall prosperity will also increase.
