Adani Ports invests $750 million to double Colombo West International Terminal capacity

Adani Ports and Special Economic Zone Ltd (APSEZ) has completed the Phase II expansion of its Colombo West International Terminal (CWIT) in Sri Lanka, doubling the facility’s total container handling capacity to 3.2 million TEUs from the previous 1.6 million TEUs. Total investment for the project reaches $750 million, involving a 35-year Build-Operate-Transfer (BOT) concession.

The terminal, located in the Port of Colombo, reached a major milestone by handling 2 million TEUs within its first 18 months of operation. With Phase II now complete, the terminal can accommodate three ultra-large vessels simultaneously.

The deepwater Colombo West International Terminal, located next to a facility run by China Merchants Port Holdings, underscores Sri Lanka’s geopolitical significance in the contest for Indian Ocean influence between New Delhi and Beijing. Adani Ports and Special Economic Zone holds a 51% stake in the terminal, John Keells Holdings owns 34%, and the Sri Lanka Ports Authority holds the remainder.

The expansion is significant for APSEZ’s strategy to strengthen its position on East-West trade routes, with the company targeting a 25% share of Colombo Port’s total traffic by 2028. The largest chunk of business flowing through the terminal originates in India.

The doubled capacity comes after Adani withdrew its funding request for the project from the US International Development Finance Corporation (DFC) in December, opting instead to finance the expansion through internal accruals and a capital management plan. The DFC had earlier committed $553 million in private-sector loans for the terminal in November 2023, before Adani chose to proceed without that financing.

Brokerage CLSA recently highlighted the Colombo container terminal as a key growth driver for APSEZ, noting that the facility reached full utilisation within a year and is expected to double its capacity, supporting the company’s broader push to scale international operations and its marine business while maintaining disciplined capital allocation.