China Merchants Port withdraws from Colombo logistics hub project

China Merchants Port Holdings (CMPort) has formally withdrawn from a joint venture to develop a logistics hub at the Port of Colombo in Sri Lanka. The project, known as the South Asia Commercial and Logistics Hub, was established in 2023 with the Sri Lanka Ports Authority (SLPA) and Access Engineering PLC.

The discontinuation follows an assessment of commercial considerations, shareholder interests, and external circumstances. Under an amicable settlement, shareholders are expected to receive refunds of their equity contributions, totaling approximately US$29.8 million, subject to regulatory requirements and operational expenses.

The SLPA intends to relaunch the development of the 14-acre site through a competitive public-private partnership (PPP) tender. The new strategy aims to expand Colombo’s capabilities beyond container transshipment by supporting value-added logistics services. While this specific project has ended, CMPort maintains its presence in Sri Lanka through its operations at the Hambantota Port and the Colombo International Container Terminals.