• Experts say Colombo Port is short of capacity, but Hambantota is not a complete solution
• Sluggish efforts to establish efficient Customs operation at Hambantota questioned

It was meant to be a routine shipment — one that would ensure a yacht manufacturer in Sri Lanka’s Southern Province met an important export order. 

A 40-foot container carrying critical raw materials should have sailed smoothly through the Colombo Port and to the company’s bonded factory. Instead, it ended up at the Hambantota Port, nearly 300 km away, triggering a scramble that disrupted production schedules and threatened delivery commitments.

For the factory team, the misrouting was more than a logistical headache. “We will lose days moving the container from Hambantota to our facility. Every hour delayed means a cost to the company and risk to our reputation with international buyers,” said an official attached to the factory, requesting anonymity.

The incident has cast a spotlight on the Colombo Port, the country’s premier maritime hub, which has been grappling with congestion for several months. Cargo clearance that once took two days now faces delays of around six to eight hours. Some shipping lines have bypassed Colombo altogether, rerouting vessels to ports in India or Singapore, resulting in economic losses and increased costs for importers who bear demurrage and additional Customs fees.

The anatomy of congestion

Port congestion has real-world impacts beyond numbers. Small and medium enterprises, particularly in the export sector, are directly affected. Factories face production halts, employees face uncertain schedules, and international clients may reconsider Sri Lanka as a reliable supplier.

One shipping clerk who did not wish to be named described the strain: “We quote prices to clients assuming smooth operations. When delays happen, extra demurrage and trucking costs must be paid. It’s stressful for clients, shippers, and staff alike.” Customs officers and port staff face long hours under high-pressure conditions, increasing fatigue and the risk of mistakes.

Congestion at Colombo has eased somewhat. Peak delays of up to two days have dropped to six to eight hours in some cases, thanks to expanded terminal operations and more efficient Customs procedures. The Adani terminal has increased container-handling capacity, while port authorities continue to streamline inter-terminal trucking and coordination.

For Hambantota, despite controversies which surrounded it, the future seems to hold promise. Once Customs facilities are completed and container-handling capacity is expanded, the port could serve as a partial relief valve for Colombo, especially for domestic cargo. Experts caution, however, that Hambantota will not replace Colombo as the main hub for international trade; its role will remain complementary.

Nevertheless, Sri Lanka’s export industries are vulnerable to infrastructure bottlenecks and procedural inefficiencies. Ports, while strategically located, have not kept pace with cargo volume growth or global supply chain demands.

Experts attribute the congestion to a combination of infrastructural and operational bottlenecks. They note that the Colombo International Container Terminal (CICT) has only three deep-draft berths, while the East Container Terminal remains partially operational. Ships often queue for days, waiting for available berths.

Operational inefficiencies add to the delays. According to the Container Transport Owners’ Association, container handling speeds have fallen from an average of 30 moves per hour to 22, representing a 30% drop in productivity. Port authorities also point to strict inspection protocols and staff shortages at Customs. 

The ripple effects are significant. Delayed berthing and slow clearance times increase costs for shippers, while trucks and drivers remain stranded for days. In June, the Container Transport Owners’ Association reported that between 800 and 1,000 vehicles were stuck at the port on any given day, creating congestion that spills over onto national roads. Consumers, in turn, face potential import cost increases of up to 20%.

Hambantota: A strategic alternative?

Given Colombo’s congestion, many have asked why the Hambantota Port cannot serve as a relief valve. The southern deep-water port, located about 10 nautical miles from the main east-west shipping route, has a 3,660-metre quay length, a 1,386-metre approach channel, and a 600-metre turning basin. 

Its tidal range is minimal and it can accommodate vessels with drafts up to 15.5 metres. Equipped for container handling, bulk cargo, roll-on/roll-off services, and bunkering, Hambantota appears, on paper, a viable alternative.

However, operational realities limit its role. Maritime expert and Shippers’ Academy Colombo Chief Executive Officer (CEO) Rohan Masakorala offered detailed insights: “Shipping lines can’t just discharge cargo wherever they like. There are routine schedules and cargo must go to specific destinations. Colombo is the main transshipment hub, where all feeder vessels and mother vessels converge. If cargo is offloaded elsewhere, it requires double handling and transfers, which increases costs.”

He stressed the need to optimise the Colombo Port. “We need to make Colombo efficient. Hambantota currently has a small service from one shipping line; it’s not a regular caller. It is gradually increasing container-handling capacity, probably up to about one million containers a year. But that doesn’t mean all shipping lines will use it.”

Masakorala compared port operations to a bus system: “Every bus arrives at a central stand and you transfer to another bus to continue your journey. Similarly, ships cannot simply stop at one port and then decide to bypass their regular port. Handling cargo at two ports is operationally complex and costly. Customers face connectivity issues and containers may roll over from one shipment to the next. We need Colombo to operate at maximum efficiency.”

Acknowledging the current capacity constraints, he said: “Colombo is short of capacity right now. That is why delays of 6-10 hours occur. Hambantota is not a complete solution to this problem.”

On the role of Customs, he added: “Customs operations should have been established at Hambantota long ago. The port handles domestic car imports and some container clearance, but Customs facilities are essential for international cargo movement. We raised this with the Sri Lanka Shippers’ Council years ago. It’s unclear why it took 10 years to prioritise this.”

Asked whether Hambantota could relieve Colombo’s congestion, he clarified: “Not really. A few containers could be offloaded there, but connecting vessels and feeder services must all be at the same port. Otherwise, it’s operationally inefficient.”

On Hambantota’s growth, he said: “It has grown over the last year, handling around 50,000 containers. New equipment has been brought in, but Colombo has also added capacity with the Adani terminal. The real bottleneck is trucking and inter-terminal connectivity, not the terminals themselves. There are not enough trucks to move containers between terminals, so vessels have to wait. Infrastructure, both handling and trucking-related, is limited.”

Masakorala noted that congestion had improved but remained an issue: “Delays have been reduced to about six hours in some cases, compared to up to two days a few months ago. Still, Colombo faces challenges in handling on-arrival work for all vessels.”

Comparing Colombo to other regional ports, he said: “All ports face operational challenges occasionally. Even Singapore had congestion at times. Colombo’s issues mainly arise from delayed infrastructure. The East Container Terminal should have been fully operational 10 years ago. 

“With volume growth, more trucking companies are needed to ease inter-terminal congestion. Large volumes can get stuck, particularly for domestic clearance, causing vehicles to be held up on roads.”

“Sorting this out will take time. Hambantota is not a direct option for transshipment,” Masakorala concluded. 

Customs response

Sri Lanka Customs Director General Seevali Arukgoda confirmed Hambantota’s current limitations. 

“No local cargo, except motor vehicles, is released from Hambantota because it is not prepared for domestic cargo. Shipments have to be brought to the designated destination. Hambantota is not a designated port for local cargo delivery,” he said.

Arukgoda added that infrastructure was being built and was expected to be completed by the end of the year. Once operational, Hambantota will be able to handle domestic cargo directly.