Sri Lanka to build South Asia’s largest logistics complex in Port of Colombo

China Merchants Port Holdings leads consortium of investors in US$ 392 million South Asia Commercial and Logistics Hub SLPA and Access Engineering to each hold 15% equity in venture 8 storey, 5 million square foot complex with design storage capacity of 530,000 CBM to be built Sri Lanka’s aspiration to become a major logistics hub in the region took a giant leap forward today with the launch of a project to build the largest commercial and logistics complex in South Asia in the Port of Colombo with an investment of US $ 392 million.

Agreements for the construction and operation of the South Asia Commercial and Logistics Hub (SACL) as a 50-year Build-Operate-Transfer (BOT) project were formally signed in Colombo by representatives of the three investing entities, with China Merchants Port Holdings (CMPort) holding a 70% stake, and Sri Lanka Ports Authority (SLPA) and Access Engineering PLC (Access) each holding a 15% stake in the venture.

A Public Private Partnership (PPP) project, the South Asia Commercial and Logistics Hub will be built in the centre of the Port of Colombo and will have 530,000 CBM of storage capacity via an eight-floor building. The investment in the project will bring in much-needed foreign investment into Sri Lanka.Construction of the complex is expected to begin in the second half of 2023 with a target of completion by end 2025. Adjacent to

Port City and the CBD, it will be directly linked with the airport via the Port Access Elevated Highway. The five million square foot complex will offer the full gamut of logistics related facilities and services such as Less than Container Load (LCL), Multi-Country Consolidation (MCC), Container Freight Station (CFS), General warehousing and various other value-added services.

A Spokesperson for CMPort said the project will result in an infusion of US$ 126 million in addition to an upfront payment of US$ 26 million after the agreement is signed. The project is also expected to provide direct employment to a minimum of 1,800 people and create 10,500 other indirect job opportunities.

The project aligns with Sri Lanka’s national development strategy to transform the country into a major logistics centre, identified as a key sector and a driving force for economic development in the National Policy Framework (NPF) 2019. It will provide better logistics and warehousing facilities and services, enhancing the Port’s competitive advantage and consequently strengthening its Hub status. The project will also improve the operational efficiency of the Port of Colombo and introduce leading-edge technology and innovation.

An artist’s impression of the proposed South Asia Commercial & Logistics Hub