SIMIC

THE Port of Colombo reported a shaky start to the new year as transshipment container volumes declined amidst persistent congestion, marking a contrast to the robust growth experienced in the first and latter parts of 2024.

The port, a critical transshipment hub in South Asia, faced operational bottlenecks, primarily driven by heightened Sri Lanka Customs inspections, according to Sri Lanka's Daily Mirror.



Transshipment volumes, which typically account for 90 per cent of the port's total container throughput, declined by 6.5 per cent year on year to 525,768 TEU in January 2025.



This decline is particularly notable given the strong performance in early and late 2024, when the port benefited significantly from diversions caused by disruptions in the Red Sea.



The initial congestion was driven by increased traffic from the Red Sea crisis. This was exacerbated by an increase in Sri Lanka Customs inspections later last year, ultimately slowing operations and impacting the port's efficiency.



The Port of Colombo handled a total of 657,728 TEU in January 2025, marking a 4.8 per cent year-on-year decline compared to the same period last year.



The Colombo International Container Terminal (CICT), the port's only fully operational deep container terminal, saw a 10.9 per cent y-o-y decline in containerised handling, processing 272,217 TEU in January 2025.



Similarly, the SLPA-run Jaya Container Terminal (JCT) and the partially operational East Container Terminal (ECT) handled 204,095 TEU, recording a 13.7 per cent y-o-y decline.



In contrast, the South Asia Gateway Terminal (SAGT) bucked the trend with a 21.6 per cent y-o-y increase in containerised cargo handling, reaching 181,416 TEU.



Despite operational challenges, the Port of Colombo welcomed 352 ships in January 2025, a slight increase of 0.6 per cent compared to the same period last year. Container ship arrivals remained stable at 317, while other cargo ships and ships for repairs saw increases of 5 per cent year on year and 20 per cent year on year, respectively.



However, ships for bunkering declined by 50 per cent year on year, reflecting changes in fuel demand and shipping patterns.