Hambantota Port to leverage relay cargo for strategic expansion

Discharged cranes at HIP ready for assembling

Hambantota International Port (HIP) is expanding into the relay cargo market as part of a broader strategy to enhance its container operations and establish itself as a key hub in regional maritime trade, the port’s operator, Hambantota International Port Group (HIPG) said.

The port plans to introduce advanced crane technology in February 2025, aiming to increase container volumes and strengthen Sri Lanka’s position in global logistics. HIPG’s seaside and landside strategies are designed to tap into untapped markets, improve connectivity, and attract new business opportunities.

Relay cargo involves transferring containers between vessels of the same carrier at an intermediate port to optimise routes and reduce transit times. This differs from transshipment, which typically involves cargo transfers between different carriers. HIPG’s entry into the relay market aligns with Sri Lanka’s goal of handling 10 million TEUs between 2025 and 2026.

“Hambantota Port’s strategic location on Sri Lanka’s southern coast, combined with the island’s central position along key maritime routes, offers a unique opportunity to attract customers who may not have previously considered Sri Lanka a viable option,” HIPG CEO Wilson Qu said in a statement.

Qu highlighted that the port’s focus extends beyond traditional market segmentation, emphasising competitive commercial rates, exceptional service, and ongoing investments in infrastructure and superstructure.

The port also targets transshipment opportunities, particularly from BIMSTEC countries, where more than 70 percent of containerised cargo bypasses Sri Lankan ports. HIPG aims to capture a significant share of this market through aggressive marketing and 
operational efficiency.

On the landside, HIPG is actively developing its industrial zone, which is expected to generate substantial gateway cargo and attract liners to the port. The industrial zone recently secured its first investment with an agreement to establish a sponge-mattress factory targeting export markets in the U.S., Europe, and Canada.

This initiative is set to create employment opportunities and foster collaboration between Sri Lankan entrepreneurs and international businesses, Qu said, adding that more agreements are expected to be finalised in 2025.