Port of Colombo 2025 began with a volatile start with transshipment container volumes declining amid continued congestion, marking a contrast to the strong growth experienced in the first and latter parts of 2024.
The port, a crucial transshipment hub in South Asia, faced operational constraints, mainly due to increased Sri Lankan customs inspections.
Transshipment volumes, which typically account for 90 percent of the port’s total container throughput, declined by 6.5 percent year-on-year (YoY) to 525,768 TEU in January 2025. This decline is particularly notable given the strong performance in the first and second half of 2024, when the port benefited significantly from diversions caused by the disruptions in the Red Sea. The initial congestion was due to increased traffic caused by the Red Sea crisis. This was exacerbated by the increase in Sri Lankan customs inspections late last year, ultimately slowing operations and impacting the port’s efficiency.
The Port of Colombo handled a total of 657,728 TEUs in January 2025, marking a 4.8 percent year-on-year decline compared to the same period last year.
The Port’s only fully operational deep-water container terminal, the Colombo International Container Terminal (CICT), saw a 10.9 percent year-on-year decline in container handling in January 2025, processing 272,217 TEUs. Similarly, the SLPA-run Jaya Container Terminal (JCT) and the partially operational Eastern Container Terminal (ECT) handled 204,095 TEUs, recording a 13.7 percent year-on-year decline.
In contrast, the South Asian Gateway Terminal (SAGT) bucked the trend with a 21.6 percent year-on-year increase in containerized cargo handling, which amounted to 181,416 TEU.
The first phase of the Western Container Terminal (WCT) is set to become operational soon, while the Eastern Container Terminal (ECT) is set to be fully operational by the end of 2025. These capacity expansions are expected to significantly reduce congestion and increase the port’s ability to handle larger volumes of cargo in the second half of this year. In addition, the government has allocated Rs 2.5 billion in the budget to implement short-term and long-term measures aimed at improving the port’s efficiency. These investments are expected to strengthen the port’s competitiveness and restore its position as a leading transshipment hub in the region.
Despite operational challenges, the Port of Colombo welcomed 352 ships in January 2025, a slight increase of 0.6 percent compared to the same period last year. Container ship arrivals remained stable at 317, while other cargo ships and ships for repair saw an annual increase of 5 percent and 20 percent respectively.
However, ships for bunkering declined by 50 percent year-on-year, reflecting changes in fuel demand and shipping patterns.
The port saw a significant increase in domestic cargo handling, particularly containerized imports, which increased by 37.1 percent year-on-year to 879,771 tons.
The total cargo handled at the Port of Colombo in January 2025 was 9,569,992 tons, a 2.7 percent annual decrease compared to January 2024. Containerized cargo volumes showed a slight decrease of 3.1 percent, while break bulk cargo volumes experienced a 46.3 percent year-on-year increase due to increased imports of iron and steel. Liquid bulk cargoes also grew by 18.2 percent year-on-year, mainly due to increased volumes of crude oil and white oil.
On the other hand, dry bulk cargo handling fell by 50.9 percent year-on-year, reflecting a sharp decline in imports of commodities such as cement and wheat.
