Hambantota targets container growth as Suez shipping recovery advances
Hambantota International Port Group (HIPG) is preparing to expand its container handling capacity to two million TEUs annually in the first quarter of 2027, as the Sri Lankan port anticipates new commercial opportunities from a sustained return of container shipping to the Red Sea and Suez Canal route.
The port operator said the recovery of the main East–West shipping corridor could strengthen Hambantota’s position in regional container transshipment, bunkering and other marine services. Its assessment follows an October 2026 outlook from maritime consultancy Linerlytica, which forecasts a full-scale return of container shipping to the Suez route by the first quarter of 2027.
However, the pace of that recovery remains dependent on regional security conditions and the operational decisions of individual shipping lines. HIPG’s expectations therefore reflect a potential commercial opportunity rather than a confirmed increase in future vessel calls or cargo volumes.
Container expansion builds on transshipment growth
Hambantota entered the container transshipment market during the disruption of established East–West shipping routes, when congestion at Colombo Port created demand for additional handling capacity.
HIPG began accommodating overflow cargo in April 2024, using the facilities available at the time. The port subsequently launched its inaugural MSC container transshipment service on April 9, 2024, establishing a foundation for the expansion of its container operations.
Since then, HIPG has committed US$149 million to new container handling equipment as part of its capacity development programme.
Bindu Ranasinghe, General Manager – Commercial and Marketing at HIPG, said the disruption had accelerated the port’s container development plans and encouraged further investment.
According to Ranasinghe, the expansion of handling capacity could allow Hambantota to attract additional business as shipping services gradually return to their established routes.
Located approximately ten nautical miles from the main East–West shipping corridor, Hambantota is positioned close to the route used by vessels transiting the Suez Canal. HIPG considers this geographical position an advantage when compared with services diverted around the Cape of Good Hope.
The operator expects that a sustained recovery in Suez traffic could increase opportunities for container handling and associated maritime services, although actual demand will depend on shipping lines’ network decisions.
Gateway cargo and marine services form part of strategy
Alongside its transshipment expansion, HIPG is preparing to develop gateway container operations that would allow Sri Lankan businesses to use Hambantota for imports and exports.
The strategy would broaden the port’s cargo base beyond containers transferred between vessels, linking its maritime operations more closely with domestic trade and industrial activity.
HIPG identified the port’s industrial park, surrounding Board of Investment zones and proposals for further industrial expansion as potential contributors to gateway cargo development.
A planned container inspection centre is also expected to support these operations, with benefits anticipated from the first quarter of 2027.
The port operator considers the development of gateway cargo important for attracting additional shipping lines and services, alongside the expansion of its transshipment capabilities.
HIPG also expects a possible recovery in traffic through the Suez Canal to create opportunities for bunkering, ship supplies and other marine services.
These expectations are linked to the potential return of vessels currently using longer routes around Africa. However, the timing and scale of any additional service demand remain uncertain.
Regional shipping patterns remain a key factor
HIPG also highlighted the distinction between developments affecting the Suez Canal and those influencing access to ports in the Persian Gulf through the Strait of Hormuz.
According to the operator, disruption affecting Gulf port access has encouraged alternative cargo arrangements, with Hambantota handling transshipment cargo for onward feeder connections to accessible regional ports.
Improved access to Gulf ports could eventually lead some cargo flows to return to their previous arrangements. Nevertheless, HIPG noted that established commercial commitments, shipping networks, insurance conditions and security assessments could influence how quickly such changes occur.
The operator believes that some alternative connections developed during the disruption could remain commercially relevant even if regional shipping conditions improve.
HIPG’s broader strategy is to combine expanded container transshipment capacity with gateway cargo, industrial development and marine services.
The planned capacity increase in 2027 represents the next stage of that development, while the port’s ability to attract additional cargo and vessel services will depend on how regional shipping patterns evolve.
