Hambantota, 2 May 2023 (GNP): China Merchants Group (CMG), a leading state-owned enterprise in China, announced on Monday that it plans to invest $2 billion in Sri Lanka by building a major logistics hub at Colombo Port, the only deep-sea port between Dubai and Singapore.
The project, named South Asia Commercial and Logistics Hub (SACLH), will be a joint venture between CMG, Sri Lanka Ports Authority (SLPA) and Access Engineering PLC, a local construction company. Moreover, China Merchants Group will hold a 70 percent stake in the venture, while SLPA and Access Engineering will each hold 15 percent.
SACLH will be the largest logistics complex in South Asia, covering an area of 5 million square feet and having a design storage capacity of 530,000 cubic meters. Additionally, the complex will consist of an 8-story building with various facilities such as warehouses, cold rooms, offices, exhibition halls, and e-commerce platforms. The project is expected to be completed by the end of 2025.
Also Read:New heights in Pakistan China strategic relations
CMG said that the project will enhance Sri Lanka’s position as a regional trade and logistics hub, create more than 10,000 jobs and generate over $200 million in annual revenue for the country.
CMG is the largest foreign investor in Sri Lanka, with an accumulated investment of over $2 billion. It also manages the port complex at Hambantota, which it acquired on a 99-year lease from Sri Lanka in 2017 for $1.12 billion.
Moreover, CMG is a key player in China’s Belt and Road Initiative (BRI), a global infrastructure and development strategy that aims to connect Asia, Africa, and Europe through trade and investment. CMG has invested in more than 50 ports in 26 countries along the BRI routes.
