Hambantota International Port Group (HIPG) recently signed an agreement to invest USD 108 million in new container handling equipment, marking a major expansion of its container terminal capacity and reinforcing Sri Lanka’s position as an emerging logistics hub in the Indian Ocean, the company said.

The agreement, signed at a ceremony held at the Colombo Hilton on March 26, brings together HIPG and Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) to procure six quay cranes, 16 rubber-tyred gantry cranes (RTGs) and 40 trailers, under the initial phase of the port’s Phase II container terminal development.

Speaking at the ceremony, Qi Zhenhong, Ambassador of the People’s Republic of China to Sri Lanka, said, “I wish to express my sincere appreciation to all those who have long cared for, supported, and contributed to China–Sri Lanka port cooperation. Today’s signing marks another important achievement in deepening bilateral cooperation in the port sector and advancing high-quality Belt and Road cooperation. It reflects our shared commitment to joint development and mutual benefit, and will inject new momentum into the development of Sri Lanka’s port system.”

The investment comes amid growing demand for alternative logistics hubs as global shipping patterns continue to shift, particularly due to geopolitical tensions in the Middle East. HIP’s location, just 10 nautical miles from the main East–West shipping route, positions it as a reliable and efficient option for shipping lines seeking minimal deviation and operational stability.

The new quay cranes, with a 72-metre outreach, 55-metre lifting height and 65-ton lifting capacity, will enable Hambantota International Port (HIP) to handle the world’s largest container vessels, while the RTGs will enhance yard efficiency and support more environmentally sustainable operations through a transition towards electrification.

Once deployed, the equipment will activate the port’s existing 1,300-metre container berth, increasing total annual capacity to approximately 2 million TEUs and extending total quay length for container operations to nearly 2 kilometres, enabling the port to handle multiple large vessels simultaneously.

Hambantota International Port has recorded strong growth across its core business segments. In 2025, the port handled 8.24 million tonnes of cargo, a significant increase from 3.0 million tonnes in 2024. Roll-on/Roll-off (RoRo) operations rose to 726,153 units, up from 579,362 units the previous year, while container throughput surged to 428,036 TEUs, compared to 53,169 TEUs in 2024. The sharp rise across all segments highlights the port’s rapid emergence as a regional transhipment platform.

“The Hambantota Port is a flagship project of China–Sri Lanka cooperation. As a joint venture invested in, developed, and operated by both sides, the port has, since its inception, remained firmly aligned with Sri Lanka’s national development priorities, striving to promote regional economic prosperity and enhance connectivity. Hambantota Port is not merely a commercial project; it is a development platform rooted in Sri Lanka, serving Sri Lanka, and benefiting Sri Lanka. As its functions continue to improve and industrial elements gradually cluster, the port is becoming an important engine driving development in the southern region,” Ambassador Qi Zhenhong further noted.

The port’s development is part of a broader strategy to build integrated capabilities across multiple sectors, including containers, RoRo, energy, and industrial operations, supported by the ongoing development of its industrial park, where the first manufacturing facility has already commenced operations. In addition to capacity expansion, the investment supports national sustainability priorities, including the transition towards electric RTGs, reducing emissions and contributing to the Government’s “Clean Sri Lanka” initiative.