While overall container volumes recorded strong growth in January, break bulk cargo and other general cargo handled at the Port of Colombo declined by 7.1 per cent and 13.4 per cent, respectively.
The port’s impressive January performance has been attributed to a combination of geopolitical and infrastructural factors. Ongoing maritime disruptions in the Red Sea have reshaped global shipping routes, reinforcing Colombo’s role as a key relay hub in the Indian Ocean. However, the port is also facing intensifying regional competition, particularly from India’s expanding maritime infrastructure.
The recent operational launch of the Vizhinjam International Seaport in Kerala marks India’s first deep-water transshipment terminal and poses a direct challenge to Colombo’s long-standing dominance. Located just 10 nautical miles from the busy Suez–Far East shipping route and offering a natural depth of up to 24 metres, Vizhinjam has already begun attracting ultra-large container vessels and mainline services that traditionally transshipped through Sri Lanka.
Operated by Adani Ports & SEZ, Vizhinjam was handling over 100,000 TEUs per month by late 2025, capturing a portion of Indian cargo that has historically accounted for more than 70 per cent of Colombo’s transshipment volumes. In addition, recent changes to India’s cabotage regulations have encouraged more coastal relay traffic within Indian ports, increasing competitive pressure on Colombo.
Despite these challenges, Colombo’s strong January results highlight its resilience. The strategic commissioning of the Colombo West International Terminal (CWIT), developed in partnership with Adani and its local partner John Keells Holdings, has enhanced capacity and introduced advanced automation, enabling the port to accommodate higher volumes efficiently and retain major shipping lines.
Although Vizhinjam is expected to expand its capacity to 6.2 million TEUs in future phases, Colombo’s established scale, operational experience, and quick turnaround times have helped it maintain a strong market share and commercial credibility in the Indian Ocean region.
