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Hambantota Port eyes growth as container shipping returns to Suez route

Hambantota International Port Group (HIPG) expects a sustained return of container shipping through the Red Sea and Suez Canal to create fresh commercial opportunities, as the port prepares to expand its annual container handling capacity to two million twenty-foot equivalent units (TEUs) in the first quarter of 2027.

The outlook follows maritime consultancy Linerlytica’s October 2026 forecast of a full-scale return of container shipping to the Suez route by the first quarter of next year, although the pace will depend on security conditions and shipping lines’ decisions. Bindu Ranasinghe, HIPG General Manager – Commercial and Marketing, said disruptions in the Red Sea had accelerated the port’s entry into container transhipment, creating opportunities for further investment

“The Red Sea disruption advanced our container project. Congestion in Colombo Port created a requirement for additional capacity, and we began accommodating overflow cargo with the resources available to us in April 2024,” he said.

HIPG commenced its inaugural MSC container transhipment service on April 9, 2024, and has since committed US$149 million to new container handling equipment.

Located approximately 10 nautical miles from the main East–West shipping route, Hambantota is strategically positioned to serve vessels returning to the Suez corridor after diverting around the Cape of Good Hope.

“When vessels use the established East–West route through Suez, they pass much closer to Hambantota. We have used the period of disruption to expand our capabilities,” Ranasinghe said.

The port also expects increased vessel movements to boost demand for bunkering, ship supplies and other marine services. Meanwhile, HIPG is preparing to expand into gateway container cargo, enabling Sri Lankan businesses to use Hambantota for imports and exports alongside transhipment operations.

The port’s industrial park, surrounding Board of Investment zones and a planned container inspection centre are expected to support this expansion, with gateway facilities anticipated to deliver benefits from the first quarter of 2027.

“To attract more shipping lines and services, we also need gateway cargo,” Ranasinghe said, highlighting the importance of industrial development and inspection facilities.

HIPG said it would focus on converting capabilities developed during regional shipping disruptions into long-term customer relationships, combining container operations with industrial activity and marine services to strengthen its commercial position.