The United States International Development Finance Corporation, the country’s development finance institution, would provide USD 553 million to Adani’s joint venture in Sri Lanka, CWIT (Image: Business Wire).
The U.S. government’s development finance agency, DFC, collaborates with business to provide funding for answers to the most pressing problems that the developing world faces. It makes investments in a variety of industries, including small business, financial services, infrastructure, energy, healthcare, and agriculture.
As a clear support of the Adani Group, this is the first time the U.S. government, through one of its agencies, is sponsoring an Adani project. It demonstrates their faith in the Group’s capacity to make investments and develop a top-notch container facility at Colombo Port.
Mr Karan Adani, Whole Time Director and CEO of Adani Ports and Special Economic Zone, said, “We welcome the U.S. government’s development finance institution, the U.S. International Development Finance Corporation (DFC), to be supporting the Adani project. We see this as a reaffirmation by the international community of our vision, our capabilities, and our governance.” “APSEZ, one of the biggest port developers and operators globally, contributes to this project not only our extensive experience in creating infrastructure but also our demonstrated world-class skills.
After the Colombo West International Terminal project is finished, thousands of new direct and indirect jobs will be created, significantly enhancing Sri Lanka’s trade and commerce environment, and it will completely change the socioeconomic landscape of the island.”
The biggest and busiest transshipment port in the Indian Ocean is the Port of Columbo. Since 2021, it has maintained an operational 90% utilisation rate, indicating a need for extra capacity. By taking use of Sri Lanka’s strategic location on important shipping lanes and its close proximity to these developing markets, the new terminal will serve the Bay of Bengal’s booming economy.
DFC strives to encourage private sector investments that bolster our partners’ strategic advantages while promoting development and economic progress. With this infrastructural investment in the Port of Columbo, we’re delivering on that promise’, DFC CEO Mr Scott Nathan stated. With half of all container ships passing through its waterways, Sri Lanka is one of the major transit hubs in the globe. In addition to boosting Sri Lanka’s economy and preventing the country from becoming more indebted, DFC’s pledge of $553 million in private sector financing for the West Container Terminal would also fortify our friends’ positions throughout the region.”
The Adani Group is growing its presence around the world by making calculated bets in developing economies. Having established itself as the industry leader in the energy utility and transport logistics sectors, Adani Ports is concentrating on building extensive infrastructure in India while adhering to international standards for operations and management procedures. The Group is making a significant contribution to constructing a brighter future for India and the rest of the globe via its ongoing dedication to producing exceptional and sustainable assets.
The largest port operator in India, Adani Ports and SEZ Ltd., the foremost company in Sri Lanka, John Keells Holdings, and the Sri Lanka Ports Authority form the partnership that owns Colombo West International Terminal Pvt. Ltd. Colombo West International Terminal (CWIT) will be developed by the consortium under a 35-year construct, operate, and transfer (BOT) agreement. Colombo Port’s standing as the main hub in the area will be strengthened by the construction of this terminal, which is predicted to push it up to the 20th spot among the best container terminals in the world. Additionally, it will improve the port’s standing, which is now 12th in the world, in terms of worldwide shipping connections.
With a capacity to handle enormous volumes of cargo from both coastal and hinterland regions, APSEZ handles 24 percent of all port volumes in the nation. Additionally, the business is building two transshipment ports in Colombo, Sri Lanka’s neighbour, and Vizhinjam, Kerala. India stands to gain from an upcoming overhaul of global supply chains, and APSEZ’s ports-to-logistics platform, which consists of port facilities and integrated logistics capabilities, such as multimodal logistics parks, Grade A warehouses, and industrial economic zones, puts it in a favourable position. In ten years, APSEZ wants to be the biggest ports and logistics hub on the planet.