By: Staff Writer
December 31, Colombo (LNW): Hambantota International Port (HIP), operated by the Hambantota International Port Group (HIPG), is making strides to enhance its container operations and emerge as a central hub in regional maritime trade.
The port’s new focus on the relay cargo market, alongside its existing transshipment operations, aligns with Sri Lanka’s ambition to handle 10 million TEUs between 2025 and 2026.
Relay cargo, which involves transferring containers between vessels of the same carrier at an intermediate port, optimizes shipping routes and reduces transit times.
Unlike transshipment—where containers are moved between different carriers—relay cargo offers efficiency gains for shipping lines. HIP’s entry into this market is supported by its strategic location on Sri Lanka’s southern coast, at the crossroads of major maritime routes.
HIPG CEO Wilson Qu emphasized the port’s unique geographical advantage and its ability to attract customers who may not have previously considered Sri Lanka a viable option. He highlighted HIPG’s commitment to competitive rates, exceptional service, and continuous infrastructure investments as key drivers of its growth strategy.
A significant part of the port’s plan involves the introduction of advanced crane technology in February 2025.
This upgrade will enable HIP to handle up to one million twenty-foot equivalent units (TEUs) annually, further enhancing its operational capacity. Additionally, the port is exploring feeder operations with Colombo to expand its service offerings.
HIPG’s “seaside strategy” targets untapped markets and aims to boost connectivity across the region. A particular focus is on transshipment opportunities from BIMSTEC countries, where over 70% of containerized cargo bypasses Sri Lankan ports.
By improving operational efficiency and launching aggressive marketing campaigns, HIP aims to capture a significant share of this market.
On the “landside,” HIPG is developing an industrial zone to generate gateway cargo and attract shipping liners.
The industrial zone recently secured its first investment—a sponge mattress factory targeting export markets in the U.S., Europe, and Canada.
This initiative is expected to create employment opportunities and foster collaborations between local entrepreneurs and international businesses. Additional agreements for industrial investments are anticipated in 2025.
The industrial zone is a critical component of HIPG’s strategy to move beyond its geographic limitations. It complements the relay cargo initiative by attracting industries that will generate consistent export volumes, thereby driving sustained growth for the port.
Wilson Qu reiterated that HIP’s expansion efforts represent a significant opportunity for Sri Lanka to solidify its position as a competitive player in global logistics. By leveraging its location, innovative operations, and targeted investments, Hambantota International Port aims to become a preferred choice for shipping lines and industrial investors in the region.
Through its combined seaside and landside strategies, HIP is positioning itself as a comprehensive logistics hub capable of transforming Sri Lanka’s maritime industry and contributing to the nation’s broader economic goals.
