News / Hambantota eyes further cargo gains from port congestion at Colombo

Photo: © Bimalka Lalinda |

Sri Lanka’s Hambantota port (HIP), operated by China Merchants Holdings (CMPort), is seeing meteoric growth in cargo volumes and now has an opportunity to cash in on trades facing capacity pressure at Colombo port.

Powered by recent infrastructure upgrades, Hambantota saw volumes in September swell 151% year on year, which by total port tonnage hit six million tonnes, up from 2.4m in September 2024, according to new data.

Sources in Hambantota attributed the upswing to containerised volumes being boosted by capacity being enhanced and more ro-ro shipments, propelled by the lifting of a five-year ban on vehicle imports into Sri Lanka.

“HIP’s growth is occurring amid a wave of strategic enhancements,” the port authority said.

“These moves, along with strong growth in vehicle transhipment (26% year on year), emphasise HIP’s commitment to securing its position as a comprehensive multipurpose maritime hub,” it added.

The authority also claimed the port can now handle 1m teu annually, with efficiency comparable with industry leaders, following the installation of new cranes that had cost the port some $41m.

“Our teams continue refining operational processes to absorb ongoing growth, and we stand ready to collaborate with stakeholders, shipping lines, and government bodies to support Sri Lanka’s broader trade, energy, and logistics goals,” said Hambantota CEO Wilson Qu.

Colombo has been under capacity pressure, incurring the wrath of Sri Lankan exporters/importers as mainliners have been intermittently forced to omit the port due to berthing delays. The volume buildup is thought to have caused the congestion, with the port hitting a new throughput high of some 745,000 teu in October, of which transhipments accounted for some 621,000 teu, new data shows.

Voicing supply chain concerns, Sri Lanka’s apparel industry stakeholders, looking to take advantage of the regional upper hand in US tariffs – 20% versus 50% for Indian exports – called for urgent intervention from government to fix Colombo’s operational problems, an issue local trade sources claimed was also rooted in lagging productivity rates.

Apparel exports out of Sri Lanka expanded about 7% year on year from January to August, according to available data. Sources expect the spillover demand from capacity-stressed Colombo to gather steam if those trade concerns persist.

The Hambantota gateway is about 150 miles south-east of Colombo, with CMPort having clinched 99-year lease rights in 2017 in a deal mired in controversy, after the Sri Lankan government had defaulted on Chinese loans secured for the port development.

Cargo consolidation at Hambantota occurred as the volume march at Vizhinjam Port in India seems to have moderated, although any sort of a direct correlation between the two indicators is intuitive.

Vizhinjam saw 86,225 teu in September and 92,527 teu in October, compared with 118,943 teu in August and 105,228 teu in July, industry data shows. The new hub, blessed with deep natural depth that can accommodate ultra-large containerships, is managed by Adani Ports.

Work on Phase 2 development to expand capacity broke ground this month and is targeted for completion in 2028, according to updates.