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Natasha
Natasha
Mar 30 2026
44Hambantota International Port Group (HIPG) has signed an agreement to invest USD 108 million in new container handling equipment, marking a major expansion of its container terminal capacity to 2 million TEUvand reinforcing Sri Lanka’s position as an emerging logistics hub in the Indian Ocean.
The agreement, signed at a ceremony held at the Hilton Colombo on March 26, brings together HIPG and Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) to procure six quay cranes, 16 rubber-tyred gantry cranes (RTGs) and 40 trailers, under the initial phase of the port’s Phase II container terminal development. Speaking at the ceremony, Qi Zhenhong, Ambassador of the People’s Republic of China to Sri Lanka, said, “I wish to express my sincere appreciation to all those who have long cared for, supported, and contributed to China–Sri Lanka port cooperation. Today’s signing marks another important achievement in deepening bilateral cooperation in the port sector and advancing high-quality Belt and Road cooperation. It reflects our shared commitment to joint development and mutual benefit, and will inject new momentum into the development of Sri Lanka’s port system.”
The investment comes amid growing demand for alternative logistics hubs as global shipping patterns continue to shift, particularly due to geopolitical tensions in the Middle East. HIP’s location, just 10 nautical miles from the main East–West shipping route, positions it as a reliable and efficient option for shipping lines seeking minimal deviation and operational stability.
Minister of Ports and Shipping, Anura Karunathilaka, said, “Beyond transhipment, Sri Lanka should emerge as a comprehensive marine services hub. From bunkering and ship repairs to crew changes and logistics support, we should develop the capacity to offer end-to-end maritime solutions. Hambantota, in particular, is evolving into a modern, integrated port and industrial ecosystem capable of meeting the diverse needs of global maritime stakeholders. Furthermore, the current global environment has encouraged companies to diversify supply chains and relocate strategic operations. Sri Lanka stands ready to welcome such investments. With expanding industrial zones, investor-friendly policies, and improving connectivity, we aim to position ourselves as a regional centre for logistics, light manufacturing, and value-added services.”
The Minister added, “It further strengthens Sri Lanka–China cooperation, reinforcing Hambantota Port as a flagship example of mutually beneficial partnership. It also supports Sri Lanka’s vision of becoming a regional maritime hub, working in synergy with the Port of Colombo to enhance the nation’s position in the Indian Ocean.
The new quay cranes, with a 72-metre outreach, 55-metre lifting height and 65-ton lifting capacity, will enable Hambantota International Port (HIP) to handle the world’s largest container vessels, while the RTGs will enhance yard efficiency and support more environmentally sustainable operations through a transition towards electrification.
Once deployed, the equipment will activate the port’s existing 1,300-metre container berth, increasing total annual capacity to approximately 2 million TEUs and extending total quay length for container operations to nearly 2 kilometres, enabling the port to handle multiple large vessels simultaneously.
Source: Daily News
