Major terminal concession opportunity emerges at Colombo Port in 2029

Colombo Port is preparing to rebid the South Asia Gateway Terminals (SAGT) concession as its 30-year agreement expires in 2029, attracting significant interest from global terminal operators and container shipping lines. Current owners include Maersk/APMT (33%), John Keells Holdings (42%), Evergreen (10%), and Sri Lanka Ports Authority (15%), but Sri Lankan policymakers have signaled they will conduct fresh tendering rather than extend existing terms. SAGT handled 1.8 million TEU in fiscal year 2025-26, down 11% year-on-year due to Middle East disruptions, yet the terminal's strategic location on the east-west trade route makes the concession highly coveted.

Meanwhile, Adani Group's $750 million Colombo West International Terminal (CWIT) has officially launched Phase 2 operations, doubling capacity to 3.2 million TEU and positioning itself as Colombo's primary growth engine. Colombo's combined throughput grew 12% year-on-year to 4.4 million TEU in the first half of fiscal 2026, demonstrating the port's resilience despite regional competition from Indian ports and persistent Middle East service disruptions. Maersk is reportedly exploring a joint bid with another European liner to compete for SAGT, having previously abandoned plans to collaborate with an Asian carrier over EU regulatory concerns.

These developments signal a critical inflection point for South Asian transhipment infrastructure. Supply chain professionals should monitor the competitive bidding process closely, as terminal ownership changes could affect service levels, pricing, and operational priorities at one of the Indian Ocean's most strategically important hubs.