Photo: Sri Lanka Ports Authority
Global terminal operators, backed by container shipping groups, are keenly eyeing fresh concessions at Sri Lanka’s Colombo port, according to industry sources.
One opportunity up for grabs soon is a rebid for South Asia Gateway Terminals (SAGT), where 30-year concession rights end in 2029.
SAGT’s ownership has four partners: 42% held by John Keells Holdings; 33% by Maersk/APMT; 15% by Sri Lanka Ports Authority (SLPA); and 10% by Evergreen.
According to sources in Colombo, Sri Lankan policymakers are not considering a further extension of the concession term but will seek new proposals.
“There are clear signals that SLPA will go in for a fresh tendering attempt,” one source told The Loadstar.
SAGT, which has three berths with a total quay of 940 metres, and able to handle 2m teu annually, began operations in 1999. The terminal handled 1.8m teu in fiscal year 2025-26, which was down 11% year on year, as the Middle East crisis resulted in a wave of service suspensions, according to available data.
Sources said most major liners were upbeat about staking a claim for SAGT, with indications that Maersk will partner with another European liner to jointly pursue the concession rights.
The Danish group had previously explored collaborating with an Asian carrier, but the prospect of EU regulatory clearance risks was understood to have derailed that move, sources added.
“A joint bid between two European liner behemoths could be a game-changer for Colombo’s terminal operations,” one Sri Lankan port veteran told The Loadstar.
Sources believe Colombo’s booming transhipment traffic offers investors a stronger growth proposition, so bidding for any upcoming projects at the port is expected to be heated.
Despite the nagging capacity strain and growing competition from Indian ports, Colombo saw combined throughput in H1 26 spike 12% year on year, to 4.4m teu.
Meanwhile, until new concessions emerge or become operational, Adani Group’s $750m investment in Colombo West International Terminal (CWIT) is seen to be Colombo’s primary growth engine.
CWIT has officially launched phase 2 operations, doubling its capacity to 3.2m teu, after hitting 2m teu within 18 months of phase 1 operations, claimed to be the fastest growth seen by any operator at the port.
“With additional capacity, CWIT would be able to simultaneously berth three ultra-large container vessels, strengthening Colombo’s position as a critical transhipment hub on the east-west trade route,” said Adani Ports (APSEZ).
“Phase 2 is a landmark for APSEZ’s international portfolio and sharpens our position across the Indian Ocean’s key trade corridors. With expanded capacity, full automation and deepwater infrastructure, CWIT is built to be Colombo’s premier transshipment gateway and contribute to export/import cargo in Sri Lanka.”
In recent years, Adani has markedly expanded its terminal networks beyond India, aiming to become the world’s largest port operator handling 1bn tonnes of cargo across markets by 2030 – doubling the 500m tonnes in fiscal 2025-26.