COLOMBO, October 18, 2026 — With civil construction approximately 82–85% complete, the Government is making a fifth attempt to procure 15 straddle carriers while considering private participation in operating the State-owned terminal.
Four cancelled tenders for essential container-handling equipment have delayed the full commissioning of Colombo Port’s East Container Terminal (ECT), with the Government now pursuing a fifth procurement exercise while examining proposals from private companies interested in operating the facility.
Although approximately 82–85% of civil construction has been completed, the terminal could face a further delay of 10–12 months after the new equipment contract is awarded.
Ports and Civil Aviation Minister Anura Karunathilaka told The Sunday Morning that difficulties in acquiring 15 straddle carriers remained one of the principal obstacles to bringing the terminal into full operation.
“The main issue is the procurement of equipment, particularly straddle carriers,” the Minister said.
He confirmed that four previous tenders had been cancelled for different reasons and that negotiations with two bidders were under way in the latest procurement exercise.
The repeated cancellations have prolonged the completion of a major State-owned port development project at a time when Colombo is recording growing container traffic and strengthening its position in international shipping.
Fifth Tender for Straddle Carriers Nears Final Stage
Karunathilaka said the Government expected to conclude negotiations and award the equipment contract within approximately two months.
The approaching expiry of the bids’ validity period has added urgency to the negotiations.
“We expect to complete the process within this year. The bid validity period is also approaching its end. Therefore, we need to complete the negotiations and award the contract within approximately the next two months,” he explained.
Even if that deadline is met, the equipment will not become operational immediately.
“After awarding the contract, it will take another 10–12 months for the equipment to be delivered and become operational,” the Minister said.
That timetable means the procurement exercise itself is only one stage in the remaining work needed to bring ECT into full operation.
Straddle carriers perform an important role in moving and stacking containers within port terminals. Without adequate equipment, a terminal’s ability to move cargo efficiently between its handling areas can be restricted even when its quay cranes and other infrastructure are available.
The Government has not publicly detailed the reasons behind each of the four previous cancellations in the Minister’s reported remarks.
Those cancellations nevertheless require explanation, given the implications for the project’s operational schedule and the State’s investment in the terminal.
Government Considers Private Operators While Retaining Ownership
Alongside the equipment procurement, the Government is examining the possibility of involving a private operator in managing the East Container Terminal.
Karunathilaka confirmed that proposals had been received from several prospective operators, including major international shipping companies.
No company has been selected.
“Our intention is to retain ownership of the terminal while considering the possibility of granting operational rights to a private sector operator. That could involve a local company or an international partner,” he said.
The Minister emphasised that the Government’s principal concern was the commercial performance of the facility.
“The most important consideration is the operator’s ability to attract sufficient container throughput,” he explained.
Shipping volumes are particularly important for a terminal designed to handle large international container vessels, as high levels of utilisation contribute to its commercial viability.
Karunathilaka declined to identify the companies that had submitted proposals or disclose their countries of origin.
“We have received several proposals from different companies. However, we have not selected an investor or operator,” he said.
The distinction between ownership and operational management is central to the Government’s proposal.
Under the arrangement being considered, the terminal would remain State-owned, while operating rights could be granted to a private company or an international partner.
The precise contractual model, commercial terms and duration of any proposed operating arrangement have not been disclosed.
Legal Clearance Required Before Competitive Bidding
The Government has yet to initiate the proposed competitive selection process for an operator.
According to Karunathilaka, certain legal matters must first be resolved.
“We are awaiting the necessary legal clearance. Once those issues are resolved, we intend to proceed through an open and competitive bidding process,” he said.
The Minister’s remarks indicate that the Government has not made a final selection, despite receiving expressions of interest.
Any eventual agreement would need to address the commercial and operational relationship between the Sri Lanka Ports Authority (SLPA) and the selected operator.
It would also have to establish how operational responsibilities, investment commitments and commercial performance would be managed while preserving State ownership.
In July 2026, Karunathilaka told Parliament that no policy or administrative decision had been taken at that stage to lease or hand over ECT to the private sector.
The subsequent discussions about private participation therefore represent a further development in the Government’s consideration of the terminal’s future operating arrangements.
The latest statements do not establish that ownership has been transferred or that a private company has already been granted control of the facility.
ECT Development Dates Back More Than a Decade
The East Container Terminal was designed to handle approximately 2.4 million Twenty-foot Equivalent Units (TEUs) annually.
Its planned infrastructure includes a 1,320-metre quay and a terminal area covering approximately 75 hectares.
The first phase, incorporating a 440-metre quay, was completed in 2015 at a cost of approximately Rs. 11.17 billion.
Operations nevertheless remained limited because of shortages of necessary equipment.
ECT subsequently became the subject of a major political dispute following a 2019 agreement involving Sri Lanka, India and Japan.
That agreement envisaged developing the terminal under an ownership structure in which Sri Lanka would retain 51% and the remaining 49% would be associated with external participation.
The proposal faced substantial opposition.
In February 2021, the then Government decided that ECT would instead be developed and operated entirely under the Sri Lanka Ports Authority.
Construction of the second phase commenced in January 2022, with an estimated project cost of US$510 million, including US$200 million from the SLPA.
The development programme envisaged the installation of 12 ship-to-shore cranes and 40 rail-mounted gantry cranes to support expanded cargo-handling operations.
The latest consideration of a private operator comes against this history of disagreement over the appropriate role of private and foreign participation in the terminal.
US$282.56 Million Crane Procurement Faces Infrastructure Constraints
According to the Auditor General’s report cited in the source material, the SLPA procured the 52 cranes for approximately US$282.56 million.
All 52 units had reportedly arrived by June 2025.
At that stage, however, only six ship-to-shore cranes were operational because of delays affecting the supporting infrastructure.
The mismatch between delivered equipment and available infrastructure illustrates the difficulties of coordinating multiple components of a large port development.
Quay construction, container-handling machinery, yard systems and supporting facilities must become available in a coordinated sequence if installed capacity is to translate into actual cargo throughput.
The current difficulty in procuring straddle carriers adds another obstacle to that process.
Despite those constraints, the terminal has recorded improved utilisation.
According to the source, ECT’s capacity utilisation increased from 43% in 2021 to 63% in 2024.
The figures indicate operational progress, although the facility remained below its planned full capacity.
Third Berth Commissioned as Container Volumes Increase
The terminal handled more than 500,000 TEUs in 2025 despite incomplete infrastructure.
On January 23, 2026, the SLPA commissioned ECT’s third berth, expanding the terminal’s ability to accommodate major international container vessels.
The occasion attracted representatives of global shipping lines, including Maersk, CMA CGM and MSC.
At the commissioning, SLPA Chairman Admiral Sirimevan Ranasinghe (Retired) highlighted the terminal’s performance in 2025, while Managing Director Engineer Ganaka Hemachandra outlined plans to increase throughput as additional infrastructure became available.
The expansion has strengthened ECT’s role in Colombo’s wider container-handling network.
Nevertheless, commissioning an additional berth is not the same as completing every component required for full terminal operations.
The continuing procurement difficulties underline the remaining gap between available infrastructure and the terminal’s intended operational capacity.
Colombo Port Records Strong Container Growth
ECT’s delayed commissioning comes as Colombo Port continues to handle increasing volumes of international container traffic.
The port processed 8.29 million TEUs in 2025, compared with 7.79 million TEUs in 2024, representing growth of approximately 6.4%.
That expansion continued during the first six months of 2026.
Container throughput reached 4.44 million TEUs in the first half of the year, compared with 3.97 million TEUs during the corresponding period of 2025, an increase of 11.9%.
According to the SLPA, Colombo’s global ranking improved from 26th at the end of 2025 to 20th during the first half of 2026.
These figures underline the importance of ensuring that additional terminal capacity becomes commercially and operationally available.
ECT is intended to support Colombo’s development as a regional container transhipment centre, providing additional infrastructure for the growing volumes moving through South Asian and international shipping routes.
Delays in bringing that capacity fully online could limit the pace at which the port responds to increasing demand.
Procurement Deadline Now Critical to ECT’s Future
For the Government, the immediate challenge is to complete the fifth tender for the 15 straddle carriers without another cancellation.
The Minister’s proposed two-month timetable places the contract award towards the end of 2026.
Even if that target is achieved, the anticipated 10–12-month delivery and commissioning period means the equipment may not become operational until late 2027.
The proposed participation of a private operator also remains unresolved, pending legal clearance and a competitive selection process.
Neither development can be considered complete at this stage.
With significant public funds already committed to construction and equipment, the authorities face the task of coordinating the remaining procurement, infrastructure and operating arrangements.
Colombo Port’s rising throughput demonstrates the commercial opportunity available to ECT.
Whether that opportunity can be fully realised will depend on resolving the procurement delays, completing the outstanding work and establishing a commercially viable operating structure.
For now, the fifth attempt to acquire the straddle carriers remains a critical test of the project’s ability to move from partial operation to its intended full capacity.
SOURCE:- THE MORNING
