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Construction of the fourth container terminal at Colombo, Sri Lanka's principal bunker port, is due to commence in June, according to media reports.

The Sri Lanka Ports Authority (SLPA) is expected to hold discussions this month with China Merchants Holdings (International) Co. and Aitken Spence & Co., which in 2009 submitted the only bid for the new $450 million Colombo terminal, Chairman Priyath Wickrama is reported as saying.

Construction of the 2.5 million-containers-a-year facility, which will expand Colombo’s cargo capacity by 50 percent, is scheduled to commence in June and finish by the first quarter of 2012, Wickrama said.

At present, the three existing terminals in Colombo - two operated by the SLPA and one by John Keells Holdings Plc. - are able to handle 4.5 million 20-foot containers per year.

It is estimated that this year the three facilities will handle a combined total of 4 million containers, up from 3.7 million in 2009, Wickrama said.

The SLPA Chairman added that Sri Lanka will call for bids for a fifth terminal once Colombo reaches 5 million containers a year.