HIPG sees stronger opportunities as container shipping’s return to Suez gathers pace

Hambantota International Port Group (HIPG) has expressed optimism about the potential growth of its operations as container shipping returns to the Red Sea and Suez Canal. The recovery of the main East-West shipping corridor, previously disrupted, could bolster Hambantota's commercial standing as it aims to quadruple its annual container handling capacity to two million TEUs in the first quarter of 2027.

This assessment aligns with the October 2026 projection from maritime consultancy Linerlytica, which predicts a full-scale return of container shipping to the Suez route by the first quarter of 2027, subject to security conditions and carrier decisions.

Bindu Ranasinghe, HIPG's General Manager of Commercial and Marketing, noted that the Red Sea disruption initially advanced the port's container transhipment project. Starting in April 2024, Hambantota accommodated overflow cargo, which prompted further investment and a full-scale operation. With capacity set to expand, HIPG warmly welcomes the return of full shipping to the Suez route.

The strategic advantage of Hambantota's proximity to the main East-West shipping route becomes increasingly significant as vessels deviate from the Cape of Good Hope. With Suez handling a sizable portion of East-West traffic, a sustained return to the established route is anticipated to heighten demand for services such as bunkering, ship supplies, and other marine services at Hambantota. The port's location provides a conducive environment to cater to these growing demands.

In addition to container handling, HIPG is set to develop gateway container cargo, enabling Sri Lankan businesses to engage in imports and exports alongside its transhipment operations. The port's industrial park, Board of Investment zones, and future industrial expansion could bolster the growth of this domestic cargo base. A container inspection centre, slated for operational readiness in the first quarter of 2027, aims to facilitate gateway operations, offering benefits from the onset.

To attract more shipping lines and services, HIPG emphasizes the necessity of gateway cargo. Industrial development within and around the port, coupled with the upcoming inspection facilities, will create a conducive environment for the growth of such business. However, Ranasinghe acknowledges that improved access to Gulf ports might lead to some cargo returning to previous arrangements, contingent upon commercial commitments, existing service networks, insurance terms, and security assessments.

HIPG remains focused on translating the capability developed during the disruption into enduring customer relationships. By integrating transhipment, gateway cargo, industrial activity, bunkering, ship supplies, and other marine services, the Port aspires to capture a more extensive range of opportunities as regional traffic patterns normalize.