ADB to fund development of Colombo port

ADB to fund development of Colombo port The Asian Development Bank will provide a $300 million loan for the expansion of the port in Colombo, in Sri Lanka’s capital, to enable it to almost double the capacity of handling containers by 2010, the bank said Tuesday.
   “In recent years, Colombo Port has lost market share in transshipment because it does not have the operating capacity or depth required to berth the latest generation container ships,” said Prodyut Dutt, ADB’s senior transport specialist, in a statement.
   Container-handling capacity will be increased from 3.3 million 20-foot containers in 2006 to 5.7 million by 2010 and eventually to 10.5 million, the Manila-based lender said.
   It said the expansion would assist Sri Lanka in generating additional income from transshipment. Foreign direct investment in the ports sector is expected to increase by about $800 million by 2024.
   The project also will promote Sri Lanka’s overall economic growth by improving its international competitiveness with lower transport costs and faster delivery times, the bank said.