China Merchants Holdings (CMH) has signed a $450m deal with Sri Lanka Ports Authority (SLPA) and the local conglomerate Aitken Spence to build a new container terminal at the port of Colombo.

CMH is rumoured to have a 70% stake in the project, with SLPA also represented. Construction is due to start early next year, with the terminal scheduled to open within three years.

This is the first of three new container terminal projects to be built at Colombo, each of which will be able to handle 2.5m teu, compared with existing traffic of 4.5m teu.

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