Can “Build-operate and transfer” be a gamechanger for the future of Colombo port?

Abstract

The purpose of this research is to investigate the importance of private-public partnerships in the development of container terminals. The study will thoroughly examine the necessity of Private Public Partnerships (PPP) and its impact in increasing as well as in finding investments, when developing container terminals. We gather qualitative, statistical information & facts related to the sector from primary & secondary sources to identify & analyse elements like current and past capacities, history of handling volumes, efficiency rates, productivity, revenue etc. on various terminals established within the port of Colombo. Due to major benefit of sharing capital funding responsibility and public risk with the private sector, this analysis shows that resorting to PPP-based projects is a much healthier alternative for SLPA. In addition, the PPP spectrum serves to highlight the SLPA's efforts to develop appropriate models, such as the BOT model, in response to the growing demand for shipping line services. The SAGT & CICT, which were created as contemporary container terminals under BOT conditions, have been successful. The introduction of BOT-based investments has improved the Colombo port's performance levels and enhanced the SLPA's motivation.