Colombo Port rebounds with double-digit growth in transshipment; to reach highest-ever container throughput this year

By Nishel Fernando

The Port of Colombo witnessed a strong resurgence in transshipment volumes for the second consecutive month in October, signalling a significant easing of congestion that had previously caused inefficiencies and impacted the port’s competitiveness.

In October, transshipment volumes at the Port of Colombo rose sharply by 25.7 percent year-on-year (YoY) to 536,611 twenty-foot equivalent units (TEUs). The port’s transshipment handling returned to growth in September, registering an 11.5 percent YoY increase, with 517,096 TEUs, effectively ending a five-month declining streak.

Despite this positive trend, the number of container ships calling at the port decreased. October saw a 10.8 percent YoY drop in container ship arrivals, down to 291 ships. Conversely, conventional and other cargo vessels demonstrated robust growth, with a 96 percent YoY increase to 49 vessels and a 29.1 percent rise to 191 vessels, respectively. Notably, the port also handled 65 bunkering ships, reflecting a 47.7 percent YoY growth, signalling higher demand for refuelling.

By the end of October, the overall transshipment volumes reached 5.42 million TEUs, reflecting an 8.3 percent YoY increase. The container throughput in October alone grew by 26.9 percent YoY to 672,051 TEUs, contributing to a cumulative throughput of 6.46 million TEUs, up 11.5 percent YoY. Accordingly, the Port of Colombo is on track to achieve its highest-ever container throughput this year, surpassing the previous record set in 2018.

Colombo International Container Terminal (CICT), the port’s only fully operational deep-water terminal, handled 288,346 TEUs in October, up 22.6 percent YoY. Meanwhile, Jaya Container Terminal (JCT) and partially operational East Container Terminal (ECT) recorded a combined 38.8 percent YoY growth, with 212,536 TEUs. South Asia Gateway Terminal (SAGT) handled 171,174 TEUs, reflecting a 23.1 percent YoY increase.

The port’s recent resurgence follows a boom period, driven by the Red Sea crisis late last year and early this year, which was subsequently followed by a challenging period of heavy congestion. The congestion, exacerbated by trade union action by Sri Lanka Customs, exposed certain management lapses by the authorities. This resulted in operational inefficiencies, including inter-terminal delays, extended clearance times, reduced berthing efficiency and rerouting of some services by shipping lines. Analysts attribute the current improvement partly to the reduced volume of container ship arrivals.

During this period, emerging Indian ports, including DP World Cochin (Vallarpadam Terminal), Chennai Port and the newly operational Vizhinjam Port, recorded notable growth in transshipment volumes, capitalising on Colombo’s operational challenges. While these ports pose no immediate threat to Colombo, analysts remain cautious about the potential long-term impacts, as India aggressively expands its port infrastructure.

However, the Sri Lanka Ports Authority remains optimistic about the Port of Colombo’s competitiveness. This optimism is driven by the ongoing development of the East and West Container Terminals, which will nearly double the port’s capacity. Additionally, early developments are underway for the Colombo North Port.