The Hambantota International Port Group (HIPG) has clarified its vehicle storage policy following recent media reports, stressing that the Port's priority is the efficient movement of cargo rather than generating revenue from storage charges, even as roll-on/roll-off (RORO) volumes continue to grow.

HIPG said the Port is currently handling more than 50,000 vehicles, including both transhipment cargo and local imports. However, only 1,278 locally imported vehicles have remained in the yard for more than three months, while 581 vehicles have been stored for over a year due largely to legacy issues stemming from Sri Lanka's vehicle import restrictions.

According to the Port, nearly 400 of these long-staying vehicles were imported before Sri Lanka resumed vehicle imports in 2025, while 175 date back to the period before import restrictions were imposed in 2020. Another 178 vehicles have remained at the Port since before HIPG assumed management of Hambantota Port in December 2017.

HIPG emphasised that ports are designed to facilitate the swift movement of cargo, not to function as long-term storage facilities. It noted that vehicles occupying valuable yard space for extended periods reduce the Port's operational capacity to accommodate increasing automotive cargo volumes.

The Port highlighted that it offers one of the region's most customer-friendly storage policies, providing 10 days of free storage for imported vehicles and 21 days for transhipment cargo before storage charges apply. Prior to HIPG taking over the Port's management, customers were entitled to only three days of free storage.

HIPG said delays in clearing vehicles are often caused by documentation issues, banking procedures, financing arrangements and other administrative matters beyond the Port's control. Storage charges, it explained, are intended to encourage timely cargo clearance and efficient utilisation of limited port space rather than serve as a source of revenue.

The Port also pointed to the flexibility it has demonstrated during exceptional market conditions. During Sri Lanka's vehicle import restrictions and subsequent global supply chain disruptions, HIPG granted substantial demurrage waivers and concessions to thousands of vehicles that remained at the Port for extended periods, regardless of whether they were eventually re-exported or released into the local market.

More recently, during disruptions to vehicle transhipment through the Gulf region, HIPG introduced a storage cap mechanism to prevent storage charges from rising beyond reasonable levels relative to vehicle values.

The company said all requests for waivers, concessions and special storage arrangements are assessed individually by Port management, taking into account prevailing market conditions and customer circumstances.

HIPG reaffirmed its commitment to working closely with Sri Lanka Customs, importers and other industry stakeholders to resolve outstanding legacy cases while ensuring the uninterrupted flow of cargo to support Sri Lanka's trade and economic growth.