Media release
Australian Minister for Trade, Mark Vaile
August 18, 1999
Sri Lankan Port Development To Benefit Australian Business
Trade Minister Mark Vaile today welcomed the agreement between the Sri Lankan Government and development company South Asia Gateway Terminals (Private) Limited to proceed with the $US240 million expansion and redevelopment of Sri Lanka's primary container terminal in Colombo.
Mr Vaile said considerable benefits would flow to Australian company P&O Ports, given the company's 16.25 per cent equity in the joint venture development company.
The terminal, expected to be completed by 2002, will be built at the Queen Elizabeth Quay in Colombo on a build, operate and transfer basis. P&O Ports will operate the management contract for the first seven years. On completion, the terminal capacity will reach one million containers a year.
Mr Vaile said Colombo was in an ideal position to attract trans?shipment trade between Asia and Europe and to serve as a distribution centre for secondary ports throughout the growing South Asia region.
"The new contract demonstrates the ability of Australian companies to win business in South Asia," said Mr Vaile. "It also complements the already high levels of Australian investment in Sri Lanka from companies as diverse as Pacific Dunlop, Telstra and ANZ Grindlays."
Combined two-way merchandise trade between Australia and Sri Lanka has doubled in the past five years to reach $A316 million in 1998?99.
Mr Vaile said there were many opportunities for Australian exporters to prosper in Sri Lanka, a country where foreign investment was encouraged and where business practices were similar to Australian business practices. He also encouraged Australian companies to explore trade and investment opportunities in other parts of South Asia.