Hambantota International Port Group (HIPG) expects a sustained return of container shipping to the Red Sea and Suez Canal to create new commercial opportunities for Hambantota Port, as it prepares to expand annual container handling capacity to two million TEUs in the first quarter of 2027.

The outlook follows maritime consultancy Linerlytica’s October 2026 forecast of a full-scale return of container shipping to the Suez route by the first quarter of 2027, although the pace of recovery will depend on security conditions and individual shipping lines’ decisions.

Bindu Ranasinghe, General Manager – Commercial and Marketing at HIPG, said the Red Sea disruption had accelerated the port’s entry into container transhipment, while a return to the traditional East–West shipping corridor could support its next phase of growth.

“Congestion in Colombo Port created a requirement for additional capacity, and we began accommodating overflow cargo with the resources available to us in April 2024,” Ranasinghe said, adding that the experience prompted the port to pursue a full-scale container operation and further investment.

HIPG commenced its inaugural MSC container transhipment service on April 9, 2024, and has since committed US$149 million to new container handling equipment as part of its expansion programme.

Located approximately 10 nautical miles from the main East–West shipping route, Hambantota is strategically positioned to benefit from vessels returning to the Suez Canal instead of diverting around the Cape of Good Hope.

HIPG believes the shift could generate opportunities not only in container transhipment but also in bunkering, ship supplies and other marine services. With an estimated 75% of East–West tonnage currently routing around Africa, a return to the established corridor could increase demand for services along the route.

The port is also seeking to broaden its business beyond transhipment by developing gateway container cargo, allowing Sri Lankan businesses to use Hambantota for imports and exports.

Its industrial park, surrounding Board of Investment zones and proposed industrial expansion are expected to support the development of this cargo base. A planned container inspection centre, targeted to facilitate gateway operations from the first quarter of 2027, is another component of the strategy.

Ranasinghe said attracting additional shipping lines and services would require a stronger gateway cargo base, supported by industrial development and improved facilities.

Meanwhile, HIPG expects the normalisation of shipping through the Strait of Hormuz to have a different impact on cargo flows. Disruptions affecting access to Gulf ports have encouraged alternative transhipment arrangements through Hambantota, including feeder connections to accessible regional ports.

Although improved access to Gulf destinations could see some cargo return to previous routes, Ranasinghe said the transition would depend on commercial commitments, established service networks, insurance arrangements and security assessments.

He noted that shipping lines and their customers had developed alternative networks during the disruption and would not necessarily abandon them immediately if regional conditions improved.

HIPG’s strategy is to convert the operational capabilities and customer relationships developed during recent disruptions into sustainable business. By combining container transhipment and gateway cargo with industrial activity and marine services, the port aims to strengthen its commercial position as regional shipping patterns evolve.