Hambantota International Port — A benchmark of logistics excellence

The Hambantota Port came under the management of Hambantota International Port Group (HIPG) in 2017, following a Public-Private partnership (PPP) between the Sri Lanka Ports Authority and the world’s largest public port developer CM Port. 

Today, the Hambantota International Port (HIP) is a key player in the shipping and logistics industry both in Sri Lanka and the South Asian region. 

The initial years were challenging for HIPG, as the new company needed to speed up efficiencies and operations of the port. The company was adhering to a meticulously crafted master plan, and began to systematically develop the port based on a 5 - pillar strategy: Integrated Logistics, Marine Services, Energy Hub, Port Services, and Port-Related Industries. This strategy laid out the foundation for HIP’s commercial development.

In another strategic move, CM Port appointed Johnson Liu, as CEO of HIPG and the Chief Representative of China Merchant Groups in Sri Lanka in 2021, tasking him with the transformation of HIP into a thriving logistical hub. The CEO’s approach, encapsulated in the initiative ‘HIP Speed,’ focused on optimising operations, commercial and marketing aspects, and creating a proactive work culture. 

The new concept was instrumental in driving significant logistical improvements at the port. Inspired by global standards and best practices of CM Port, who manages over 51 ports and terminals worldwide, HIP was prepared for anticipated shifts in global trade routes while seizing future opportunities. The improvements included strategic investments in cutting-edge equipment, streamlined processes, and advanced technologies, all of which significantly boosted operational efficiency, reduced vessel turnaround times, and increased overall throughput.

A series of targeted investments and partnerships have driven the transformation of HIP into a strategic logistics powerhouse. The promotion of the port’s industrial park accelerated as agreements were formed with over 30 investors from countries such as Singapore, Japan, Sri Lanka, China, and Thailand. These investments were crucial in positioning HIP as a key logistics hub in the region. 

The on-site “One Stop Service” facility, a standout feature of HIP, includes representatives from Sri Lanka’s Board of Investment (BOI) and Customs to assist investors with certification and approvals, providing comprehensive and seamless services to stakeholders. 

HIPG’s partnership with Sinopec Fuel Oil Lanka Limited, is aimed at developing the port as a South Asian energy hub. HIP’s fast growing bunker service volumes are bringing the port closer to this goal every year. In 2023 alone volumes grew by 250%, with 699,391 metric tons handled over the 199,803 metric tons in 2022.  The partnership has positioned HIP as a critical meeting point for bunkering services in the region, enhancing its strategic value in the global maritime industry. 

The port is equipped to handle a wide array of energy-related operations including Liquefied Petroleum Gas (LPG), vessel gas-ups, and direct bunker supplies, catering to diverse maritime needs. HIP’s LPG operations have also seen a year on year growth, with a 100% increase in volumes handled in the first half of 2024. The country’s only internationally recognised and accredited private petroleum testing laboratory, a collaboration with Intertek Caleb Brett, providing accurate testing of fuel oils, marine diesel, and marine gas oils on-site, further enhances the port’s operational efficiency and reliability.

The impact of these efforts is evident in the port’s steadily growing overall performance metrics. In the first half of this year, HIP’s total cargo throughput saw a 40% increase against the same period in 2023. These impressive results underline the effectiveness of HIPG’s strategic vision and execution.

In addition to general cargo-handling capabilities, HIP has become a regional leader in Roll - On/Roll - Off (RORO) cargo operations, handling vehicles with high levels of human-machine interaction.  In 2023, HIP handled a staggering 700,201 units, with numbers continuing increase. This aspect of port logistics requires stringent safety measures, which HIPG prioritises, gaining recognition of global operators and further solidifying its reputation in the logistics industry.

In April 2024, HIP achieved another significant milestone by launching its first container trans-shipment service in partnership with the world’s largest container carrier, the Mediterranean Shipping Company (MSC). This service not only enhances Sri Lanka’s position in the South Asian marine connectivity index but also provides local importers and exporters with a more sustainable option for shipping and trans-shipment, reducing greenhouse gas emissions compared to road transport, apart from being a key inducement for investors in the industrial zone.

The port’s marine services segment is another area that has seen steady growth, with an increase of 70% in 2023 compared to the previous year. Further enhancing its service offerings, HIP signed an agreement with Colombo Dockyard to establish a workshop at the port. The workshop will extend Colombo Dockyard’s service footprint to southern Sri Lanka, providing rapid afloat repair services to vessels calling for trans-shipment, bunkering, and other operations. This initiative will augment the port’s capacity for afloat repairs and contribute to bringing much-needed foreign exchange into the economy. 

HIP began seriously positioning itself as an ideal destination for cruise liners in 2021, and has since marketed itself aggressively on a global level.  This led to a 450 % growth in cruise liners calling at the port, with an increase of 22 vessel calls in 2023 from the 4 vessels that called in 2022.  A modern green port, HIP is well-equipped to handle the needs of ships, crews, and passengers, offering seamless services for immigration and customs. With its 17 metre depth the port can accommodate any cruise liner in the world.

HIP’s steady development and growth in line with a well thought out masterplan, epitomises the port’s commitment to excellence, driving rapid decision-making, continuous improvement, and a customer-centric approach, resulting in the port becoming a strategic powerhouse with visionary leadership, strategic investments, and global partnerships. The port has not only strengthened its competitive edge but also set a new benchmark for excellence in the global logistics and maritime industry.

From 2021, the port has had a holistic approach to CSR, taking on projects that sustain the environment as well as adjacent communities.  Some noteworthy initiatives include the Human Elephant Peace fund, Hope Village, Afforestation, rehabilitating community schools and projects that foster Buddhism in the Hambantota district. Becoming the first Sri Lankan port to receive an international accolade for CSR by winning the top global CSR Award at the Maritime Standard Awards 2022 and 2023 was a crowning achievement for the port.