(Commonwealth_ The Port of Colombo reached a historic milestone in 2024, with transshipment volumes growing by 9.7% year-on-year (YoY) to an unprecedented 6.31 million 20-foot equivalent units (TEUs). Transshipment activities accounted for 81% of the port’s total container throughput, underscoring its role as a regional shipping hub. This growth propelled the port’s overall container throughput to a record 7.78 million TEUs in 2024, representing a 12.1% YoY increase from the 6.91 million TEUs handled in 2023.
Key Drivers of Growth
The surge in transshipment volumes was partly attributed to geopolitical factors, including the Red Sea crisis, which prompted shipping lines to reroute their vessels to avoid disruptions and heightened insurance costs. Many vessels bypassed the Red Sea, choosing alternative routes around the Cape of Good Hope, with Colombo emerging as a critical transit point. In December 2024 alone, the port handled 544,266 TEUs in transshipment volumes, marking a 5.4% YoY increase and extending its growth streak.
Improvements in Import and Export Volumes
The port also saw significant increases in both import and export container volumes. Import container (laden) volumes rose by 23.5% YoY to 541,155 TEUs, while export container (laden) shipments climbed by 6.2% YoY to 301,094 TEUs. Additionally, restowing volumes set a new record, surging 49.6% YoY to 307,619 TEUs.
Performance Across Terminals
The Colombo International Container Terminals (CICT), the port’s only fully operational deep-water container terminal, contributed significantly to the overall throughput, handling 3.22 million TEUs in 2024, a 4.1% increase from the 3.20 million TEUs recorded in 2023. The Sri Lanka Ports Authority (SLPA)-managed Jaya Container Terminal (JCT) and the partially operational East Container Terminal (ECT) handled a combined 2.41 million TEUs in 2024, reflecting a 22.8% YoY growth from 1.96 million TEUs in the previous year.
Meanwhile, the South Asia Gateway Terminal (SAGT) experienced robust growth, with container volumes rising by 14.9% YoY to 2.02 million TEUs.
Challenges Amid Growth
Despite record throughput, the number of container ships calling at the port declined in 2024. Container ship arrivals fell by 9.5% YoY to 3,522 ships, with a similar decline in December. This drop reflects broader trends, including global shipping disruptions and challenges in port operations.
The overall number of vessels calling at the port also decreased by 6.3% YoY to 3,968 vessels. However, specific segments demonstrated strong growth. Conventional and other cargo vessels rose by 68.8% YoY to 54 vessels, while other cargo vessel arrivals increased by 27.8% YoY to 230 vessels. Bunkering ships showed remarkable growth, with a 68.2% YoY increase to 74 vessels, indicating rising demand for refueling services.
Operational Hurdles and Congestion
The port’s growth was not without challenges. A boom period fueled by the Red Sea crisis in late 2023 and early 2024 was followed by operational hurdles, including congestion and inefficiencies. Trade union action by Sri Lanka Customs exacerbated delays, leading to extended clearance times, inter-terminal inefficiencies, and reduced berthing efficiency. These issues forced some shipping lines to reroute services, further straining operations.
Towards the latter part of 2024, the port began to recover, with congestion levels easing and operations stabilizing. However, the challenges highlighted management lapses that need to be addressed to sustain growth and improve service levels.
Future Outlook
Looking ahead, the SLPA has set ambitious targets for 2025, aiming to surpass nine million TEUs in container throughput. This goal will be supported by additional capacity from the East Container Terminal (ECT) and Colombo West International Terminal (CWIT), which are expected to boost the port’s overall capacity to over 10 million TEUs within the year.
The port’s strategic position and its ability to attract major shipping lines will remain critical as it seeks to maintain its status as a key transshipment hub in the region. To ensure continued success, addressing operational inefficiencies and enhancing infrastructure will be essential. The Port of Colombo’s record-breaking performance in 2024 underscores its importance in global shipping networks. Despite facing challenges, the port demonstrated resilience and is poised for further growth in the coming years.
