Colombo Port Faces Delays and Cost Increases in Jaya Container Terminal Expansion

The delayed expansion of the Jaya Container Terminal (JCT) is causing problems at the Port of Colombo, resulting in a significant increase in construction costs and the need to purchase new gantry cranes. The project, which aims to modernize and expand the JCT, was initially estimated to cost Rs 5 billion but now is projected to cost Rs 10 billion, as per the recent National Audit Office report. The extension of the anchorage by 120 meters is part of the modernization plan, bringing the terminal’s total length to 1,400 meters.

The current lack of operational capacity at the terminal, with its 600-meter length, can’t accommodate two large ships simultaneously, each 330 meters long. This limitation has hindered port operations. In response, the Cabinet of Ministers approved the terminal extension and deepening of the basin to 15 meters in July 2017, with a contract signed on November 29, 2018, costing Rs 5.04 billion excluding VAT. Despite these efforts, delays in project implementation have been experienced.

Despite the contract’s stipulation that the project should begin within seven days of signing, no progress was made. The Cabinet revised the contract in September 2020, delaying the project start by two years until November 23, 2020. By December 31, 2023, only 82.6 percent of the project was completed, missing the initial deadline of July 31, 2020. These delays have impacted operations at the Colombo Port, highlighting the importance of completing the expansion to enhance efficiency and capacity.

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