Colombo Port expected to benefit from Middle East crisis as February numbers hint at growth
Daily Mirror: The Port of Colombo recorded a 4.8 percent year-on-year (YoY) growth in total container throughput in February, handling 636,084 twenty-foot equivalent units (TEUs), compared to 606,784 TEUs in the same period last year.
Reflecting this heightened activity, the total number of ships arriving at the port rose by 4.3 percent, increasing from 305 vessels in February 2025 to 318 vessels in February 2026.
This growth is partially being fuelled by the escalating geopolitical crisis in the Middle East, which has forced the global shipping lines to reroute the vessels and significantly alter the traditional trade flows.
The industry officials note that the current situation presents a substantial opportunity for both the Port of Colombo and Hambantota International Port, extending beyond cargo to massive prospects for bunkering.
With many major shipping lines increasingly avoiding the Middle East altogether, due to the escalating risks extending beyond the Red Sea, the vessels are taking longer routes. Consequently, the demand for bunkering in Sri Lanka has surged exponentially, presenting a major capacity utilisation opportunity.
The shipping lines are actively looking to offload their cargo in safe-haven ports, with Mediterranean Shipping Company already depositing significant volumes of rerouted cargo at Hambantota.
The ongoing disruptions have caused the freight rates to skyrocket, with the costs doubling on several alternative routes.
For instance, ports like Salalah in Oman, which currently stand as some of the few accessible major transshipment hubs outside the immediate conflict zones, have seen a massive influx of demand and surging rates, as the carriers scramble for viable drop-off points.
The industry experts project that the impact of this rerouting will become even more pronounced in the coming months, with the March figures expected to show a massive surge in both transshipment volumes and bunkering demand in Sri Lanka.
However, this sudden influx of cargo has prompted acute concerns regarding the port efficiency and capacity constraints.
During a recent meeting with the industry stakeholders, Sri Lanka Ports Authority (SLPA) Chairman Dr. Parakrama Dissanayake cautioned the terminal operators to manage the yard space carefully, warning that a buildup of empty containers could severely choke the port operations.
He emphasised that priority must be given to the existing shipping lines to maintain productivity, rather than sacrificing the long-term operational stability for a temporary surge in the ad hoc rerouted cargo.
A closer look at the port’s segment performance reveals mixed results. The overall growth was primarily anchored by the transshipment volumes, which grew by 4.7 percent YoY to reach 502,560 TEUs.
The import volumes also showed a positive momentum, expanding by 8.9 percent to 56,309 TEUs. The restowing activities saw a 9.5 percent increase, handling 25,927 TEUs during the month.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean in close proximity to international shipping lanes and the country’s strong trade ties have always benefited Sri Lanka’s maritime industry and related sectors. Sri Lanka is also focused on becoming a maritime hub in the South Asian region resulting in the expansion of business/investment opportunities in the country’s maritime industry. This has also resulted in the expansion of business/investment opportunities in Sri Lanka’s maritime industry with the Sri Lankan government also focusing on further uplifting and developing the ports, shipping and logistics sectors to meet the increasing demand as well as to be on par with the fast-evolving global maritime industry. However, Sri Lanka’s maritime industry and related sectors, especially ports, shipping and logistics sectors would witness further expansion given the increasing activity in key ports in Sri Lanka, especially Colombo and Hambantota due to the disruptions in shipping due to the ongoing conflict in the Middle East. Therefore, Sri Lanka presents the best centers for foreign vessels to call at after entering the Indian Ocean. Given these developments and the increasing business potential in Sri Lanka’s maritime industry, foreign businesses/investors could explore the expanding opportunities in the industry and sectors connected to it.
| Article Code : | VBS/AT/20260402/Z_3 |