Indian exports struggle as transhipment feeder rates to Colombo surge
Container shipments from South India are reeling under the pressure of elevated feeder rates for ...
Photo: Hambantota International Port Group
Hambantota International Port (HIP), Sri Lanka’s second major gateway, is seeing a rush of containers as rival Colombo Port battles multiple challenges from lingering capacity shortages and weather events.
HIP reported a seven-fold jump in container throughput last year, from 53,170 teu in 2024 to 428,036 teu, positioning itself as a formidable alternative gateway, according to new data released by the port.
“What makes this performance remarkable is not just the scale of growth, but that it was achieved amid sustained global disruption,” said CEO Wilson Qu.
“These volumes reflect customer confidence, operational flexibility, aggressive marketing strategies in Sri Lanka and internationally, as well as the commitment of our team.”
The Hambantota harbour, about 150 miles south-east of Colombo, operated by China Merchants Port Holdings (CMPort), only began container operations in 2024.
Being a multi-purpose complex, the new port had been concentrating on ro-ro and bulk traffic since its commissioning in 2010. Equipped with some 11 ro-ro berths, the port hosts regular calls from leading car-carriers with auto volumes out of the region, including Indian car exports, continuing to gain pace.
The 2025 boost was all-round, with total tonnage up 175% year on year, according to data.
To target container lines concerned at the delays at Colombo, HIP invested some $41m to upgrade quay cranes and other infrastructure, and it has lined up plans to expand container handling capacity to two million teu this year.
“This will be achieved by allocating four dedicated container berths and adding equipment, including six quay cranes and 16 rubber-tyred gantry cranes,” HIP said.
According to local sources, Hambantota already hosts regular container services from MSC, in addition to ad-hoc calls that spiked last month after a three-day shutdown enforced at Colombo in preparation for Cyclone Ditwah. The disruption resulted in heavy on-dock cargo buildups, forcing some carriers to skip calls.
And sources expect the spillover demand from capacity-stressed Colombo to accelerate, because of rising regional transhipment trade in a volatile market environment.
Meanwhile, riding the sustained transhipment growth, Colombo also saw record throughput in 2025, handling some 8.3m teu, up 6% year on year, new data indicates.
“The 2025 performance is notable not only for the volume achieved, but also for the context in which it was delivered,” said Sri Lanka Ports Authority. “Global shipping networks continue to adjust to route realignments, fleet expansion and persistent cost pressures.”
Adani Group’s Vizhinjam Port in India also seems to have benefited from the recent Colombo bottlenecks. Vizhinjam considerably boosted box handling in December – to some 121,500 teu from 103,500 teu in November, the latest data reveals.
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