FINANCIAL CHRONICLE – The Colombo West International Terminal (CWIT), under the management of Adani Ports, is a glimpse into the future of port operations. The facility features modern quayside cranes that transfer containers between ships and trucks, along with yard cranes that temporarily stack containers up to six high. Remarkably, these cranes are operated remotely from the terminal’s main hub. Teams utilize data from cameras and sensors mounted on the cranes, allowing them to manage container movements using joysticks, with a notable participation from young women in roles traditionally held by men in this sector.
Since its inception, the Indian-owned CWIT has demonstrated exceptional growth, processing 1 million twenty-foot equivalent units (TEUs) within its first year of operation, all with just eight quayside cranes while terminal construction progresses. Once fully operational, the facility anticipates a workforce expansion to 250 employees from its current count of 172. “At full capacity, we can handle 3.5 million containers annually,” stated Iresh Siriwardena, the terminal’s chief operating officer.
Colombo’s port system also includes two additional privately operated terminals, SAGT and the Chinese-owned CICT, along with three state-operated terminals: Jaya, East Container Terminal, and Unity. In 2025, the port processed 8.2 million containers, securing its position among the top 25 global ports by volume.
Historically, the Sri Lankan maritime industry has been considered to perform beyond its scale, accounting for 0.8% of global container traffic, while the nation itself represents only 0.05% of global trade. This contrasts sharply with major regional hubs like Dubai and Singapore, which handle much larger portions of global container movements.
While Sri Lanka does not stand out as a manufacturing giant, it serves as a crucial transshipment hub. The global landscape for supply chains is evolving, with a noticeable shift of operations from China towards Southeast and South Asia. This transition is particularly beneficial for Sri Lanka, as Indian cargo now constitutes 45% of the transshipment traffic through Colombo.
Romesh David, a former CEO of South Asia Gateway Terminals (SAGT), believes that Sri Lanka may be undervaluing the potential of the Indian market. He pointed out that in 2024, Chinese ports managed around 230 million containers, while all of India’s ports collectively handled only 23 million, despite India’s larger population. The growth of India’s economy is expected to influence cargo demand in two major ways: increased consumer demand for imported goods due to rising wealth and the country’s emergence as a manufacturing hub integrated into global supply chains.
India aims to enhance its shipping infrastructure through the Sagarmala 2.0 initiative, planning to invest $82 billion in port projects by 2035, alongside $139 billion in maritime investments. Furthermore, a $9 billion hub is being developed at Galathea Bay in the Nicobar Islands, strategically located near significant shipping routes. Over the past decade, India’s freight volumes have grown at an annual rate of 5.2%, but there is potential for containerized freight volumes to increase significantly in the coming decade, provided international trade expands at a faster pace.
Colombo port is well-positioned to capitalize on India’s growing manufacturing sector and increasing consumer demand, with over 85% of Indian cargo being processed through Colombo, Singapore, and Malaysia’s Port Klang. However, India is unlikely to use the Chinese-controlled Hambantota International Port for significant transshipment activities, as evidenced by its handling of only 428,000 TEUs in 2025, despite plans to increase capacity.
Efficiency, capacity, cost, and location are critical factors in the success of a transshipment port, according to David. Colombo currently processes more containers than ever, but its ability to swiftly manage ship turnarounds has decreased compared to its competitors. The World Bank’s Container Port Performance Index (CPPI) indicates that Colombo’s efficiency has declined, with the port dropping from 17th place globally in 2020 to 80th by 2024.
Colombo’s journey to becoming a leading global container port began gradually in the late 20th century, with significant milestones such as the launch of the Jaya Container Terminal (JCT) in 1985, funded by Japan. The growth of the Asian Tiger economies and shifts in global trade patterns have positively impacted Colombo’s status, enabling the terminal to handle a substantial amount of transshipment cargo.
Research indicates that Colombo port could have managed around 10 million TEUs in 2025 if not for congestion issues, which stem from operational inefficiencies rather than a lack of capacity. David emphasizes that successful transshipment operations require surplus capacity so that shipping lines can develop networks around a port over the long term.
Major shipping lines maintain offices in Colombo and have indicated a potential for 15 new weekly services if sufficient capacity is available. This could theoretically add 11.7 million TEUs to Colombo’s operations, significantly boosting its throughput. The arrival of large vessels, such as MSC’s Mariella, which can carry over 24,000 TEUs, underscores the need for improved port efficiency.
Colombo port’s performance could be enhanced by adopting more efficient logistics and infrastructure improvements rather than merely expanding its size. The efficiency of ports like Singapore serves as a benchmark for Colombo, which currently faces challenges in terms of space utilization and operational speed.
Customs clearance processes significantly impact turnaround times at the port. In 2025, the average customs clearance time for Full Container Loads (FCL) was over 44 hours, considerably longer than the 24 minutes reported by Singapore customs. The complexity of Sri Lanka’s customs processes, which require both digital and printed documentation, hampers efficiency.
Advocates for a ‘single window’ system that centralizes all customs and border agency operations argue that such a system would streamline processes and eliminate the need for paper documentation. Although proposals for this system have existed for over a decade, implementation remains stalled.
The impact of customs delays extends beyond the port, affecting yard space and overall operational flow. Delays at customs create bottlenecks that disrupt the entire logistics chain, leading to increased waiting times for trucks and congestion across the port.
To address these challenges, experts suggest that Colombo port must improve inter-terminal trucking efficiency, potentially through automation or smart gate systems that could significantly reduce delays. Despite the potential for growth, the current infrastructure and operational inefficiencies pose serious challenges to Colombo’s aspirations of becoming a major maritime hub.
Ultimately, the dual nature of Colombo’s port operations—efficient private terminals alongside less productive public ones—highlights the need for structural changes in governance and management to enhance overall performance. The introduction of private capital into port operations has been beneficial, but systemic issues remain that hinder the port’s progress towards becoming a leading global maritime center.
