Ports and Shipping Minister Arjuna Ranatunga said in Parliament today that he was of the view that the government should retain the majority stake of Colombo Port East Container Terminal.
He was responding to a question raised by JVP MP Dr. Nalinda Jayatissa.
The minister said the Government called for expressions of interests to invest in the East Terminal, but added the mechanism for that has not been decided yet.
He said even though a Cabinet paper was presented to lease out the East Terminal retaining a minimum of 15 percent to the Ports Authority, the government could up its stake by negotiating with the investor.
Responding to a supplementary question by JVP Leader Anura Dissanayake, the minister said he still stands by his initial position that the Government should hold 51 percent of the stake of the East Terminal.
“East Terminal is very important to the Ports Authority as it is a deep water terminal to which deep-draught ships can enter. We presented a Cabinet paper last week to purchase cranes and it was referred to the Cabinet Sub-Committee on Economic Management. We hope to start operations in the first 400m in the terminal using these cranes,” the minister explained.
MP Dissanayake said Colombo International Container Terminals (CICT) handle 34 percent of container operations of Colombo Harbour at present, while South Asia Gateway Terminals (SAGT) handle 28 percent.
He pointed out the share of container operations of the Ports Authority has dropped from 86 percent in 2001 to 38 percent now.
The MP objected for the proposal to go for long-term lease for the East Terminal, which was constructed at a cost of Rs 10,800 million, stating that the Government should start operations in it.
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