Sri Lanka is betting big on its maritime ambitions, and Adani Ports and Special Economic Zone (APSEZ) is putting significant capital behind that bet.
Sri Lankan Prime Minister Dr Harini Amarasuriya on October 1 inaugurated the second phase of the Colombo West International Terminal (CWIT), a $750 million expansion that doubles the terminal’s annual handling capacity from 1.6 million to 3.2 million twenty-foot equivalent units (TEUs).
The expansion is expected to strengthen Colombo’s position as one of the Indian Ocean’s major transhipment hubs and help the port move towards its longer-term target of handling 13 million TEUs by 2028.
Three mega container ships at the same time
The expanded CWIT will be capable of accommodating three ultra-large container vessels simultaneously, an important upgrade for a terminal operating on the busy East-West maritime trade corridor.
The terminal’s deep-water infrastructure is designed to handle some of the world’s largest container ships, while its automated operations are intended to improve cargo-handling efficiency and turnaround times.
The development is particularly significant for Colombo because transshipment is at the heart of the port’s role in regional maritime trade. Cargo moving between major shipping routes can be transferred through Colombo before reaching destinations across South Asia and beyond.
With its capacity now doubled, CWIT is targeting a role equivalent to roughly one-quarter of Colombo Port’s planned 13 million-TEU capacity by 2028.
2 million TEUs in just 18 months
The capacity expansion comes after a rapid operational ramp-up.
CWIT says it handled its first 1 million TEUs within its inaugural year in 2024. It subsequently crossed the 2-million-TEU mark within its first 18 months of operations.
That performance provides an early indication of the scale of demand that the terminal is attempting to serve.
Sri Lankan Prime Minister Harini Amarasuriya said the terminal’s performance demonstrated what could be achieved through infrastructure investment and partnerships, arguing that projects such as CWIT could create employment, attract international trade and improve Sri Lanka’s competitiveness as a maritime hub.
The terminal has reportedly generated more than 3,000 direct and indirect jobs since its development.
A major India-Sri Lanka infrastructure partnership
CWIT is being developed under a 35-year build-operate-transfer (BOT) concession involving APSEZ, Sri Lankan conglomerate John Keells Holdings and the Sri Lanka Ports Authority.
For APSEZ, the project represents more than an investment in additional terminal capacity. Colombo occupies a strategically important position along one of the world’s busiest shipping corridors, making the terminal a key part of the company’s international expansion.
APSEZ CEO and Whole-Time Director Ashwani Gupta described the $750 million investment as a demonstration of confidence in both Colombo and the broader Indian Ocean trade network.
The company sees the expanded terminal as a potential gateway not only for transshipment but also for Sri Lanka’s import and export cargo.
Automation at the heart of the terminal
CWIT has another distinction: it is described as Sri Lanka’s first fully automated deep-water container terminal.
Its operations use electrified equipment and automation, with the terminal designed to handle large vessels while reducing reliance on conventional fossil-fuel-powered equipment.
The terminal has also recorded 17 million safe working hours, highlighting the scale of its operations since becoming operational.
The combination of automation, deep-water access and expanded berth capacity is intended to allow CWIT to compete for increasingly large container vessels and the shipping networks that operate them.
Why Colombo matters to the region
Colombo’s location gives it a natural advantage in transshipment. The port sits close to major international shipping lanes connecting Asia, Europe, Africa and the Middle East.
For shipping lines, the ability to transfer cargo efficiently between large vessels and regional feeder networks can make a significant difference to route economics.
That makes additional terminal capacity particularly important as global container shipping networks continue to deploy increasingly large vessels.
CWIT’s expansion therefore comes at a time when Colombo is seeking to increase its overall capacity and strengthen its position against other regional maritime hubs.
APSEZ’s international footprint expands
The Colombo investment also fits into APSEZ’s broader strategy of building an integrated transportation and logistics network extending beyond India’s coastline.
The company currently operates 16 ports and terminals in India, alongside international port assets in Australia, Colombo, Israel and Tanzania. Its logistics network includes multimodal logistics parks, warehouses, rail and road transportation capabilities and a large commercial vehicle network.
APSEZ says its overall cargo-handling capacity currently stands at 653 million tonnes annually, with the company targeting throughput of 1 billion tonnes by 2030.
The Colombo project gives that network an important international transshipment component.
With Phase II now operational, CWIT is moving from a 1.6-million-TEU terminal to one capable of handling 3.2 million TEUs annually. The next challenge will be converting that additional capacity into sustained cargo volumes and strengthening Colombo’s role in the increasingly competitive Indian Ocean shipping market.
For Sri Lanka, the stakes are equally significant: the success of projects such as CWIT could determine how effectively the country turns its geographic position into a larger share of regional and global maritime trade.
