Delayed operational expansion of the Jaya Container Terminal (JCT) is affecting operations at the Colombo Port while doubling the building cost along with the procurement of new gantry cranes. According to its latest report by the National Audit Office, the revised cost of the project has been estimated at Rs.10 billion as against the earlier cost estimate of Rs.5 billion. The new up-gradation is designed to extend and modernise the JCT. It comprises an extension in anchorage of 120 metres to extend it to a length of 1,400 metres.
These upgrades, combined with the terminal’s existing 14 gantry cranes, are critical to enhancing its operational capacity. Currently, the terminal’s 600-metre length limits its ability to handle two large ships, each measuring 330 metres, simultaneously. This shortcoming has deprived the Port of gaining business. In this circumstance, in July 2017 the Cabinet of ministers approved the expansion of the terminal and the deepening of the basin to 15 metres. The agreement between the Port and the contractor was signed on November 29, 2018, at a cost of Rs.5.04 billion sans VAT.
However, the project was plagued by delays. While the project was supposed to start within seven days from the date of signing as per the agreement, no such notice was given. The Cabinet has changed the contract in September 2020 and deferred the commencement of the project for two years to November 23, 2020. Only 82.6 per cent of the project was completed as of December 31, 2023 although it was initially scheduled to be completed by July 31, 2020.
