HIP and CICT a boon to Sri Lanka’s ports and shipping industry

Sri Lanka, already hailed as South Asia’s transshipment hub, draws tremendously from the expertise of its global partner China Merchants Port Holdings (CMPort), whose extensive relationships and international networking spreads across some of the most prominent international maritime centres in the world. The Hambantota International Port and the Colombo International Container Terminals Ltd. (CICT), are the two major projects of CMPort, which are collaborations between the global port operator and the Sri Lanka Ports Authority (SLPA). The expert knowledge sharing, know-how, and strategic investments by CMPort in these projects, is helping Sri Lanka maximise its growth potential both locally and globally.

A subsidiary of the reputed China Merchant Group, CMPort Holdings is the largest, globally competitive public port developer, investor and operator in China, with investments in Mainland China, Hong Kong and overseas. An award-winning operator in the cargo logistics sector, with an international track record for best practices and sustainable cargo transportation CMPort, has a network of 36 ports in 18 countries and five continents. 

Colombo International Container Terminal

CICT, CMPort’s first project in partnership with the SLPA, was set up within the Colombo Port in under a 35-year Build Operate and Transfer Agreement with a handling capacity of approximately 3.2 million TEUs. CICT is currently the first and the only operating deep water terminal in South Asia, capable of handling the largest vessels afloat. The terminal is strategically positioned in the centre of the main east west shipping route with minimum deviation and is equipped with a modern state of the art facility, coupled with a highly motivated and committed workforce. 

CICT believes in the power of partnerships and is committed to working in collaboration with its customers to set the standards for productivity, efficiency and reliability in the industry. Amongst many of CICT’s milestones is being ranked among the top 15 container terminals worldwide by the Container Port Performance Index 2021. CICT has also contributed significantly to the Colombo Port’s achievement in being ranked the No. 1 Port in South Asia and the Indian Subcontinent, for efficiency.

Since its inception in 2014, the terminal has incrementally grown its volumes handled from 686,639 TEUs (in 2014) to just over 3.2 million TEUs in 2021; the highest done by a terminal in South Asia.

CICT has been consistently recognised for exceptional levels of efficiency, and has won the AFLAS award for Asia’s best container terminal under 4 million TEUs for five consecutive years. Further, CICT has also won the award for the ‘Most Efficient Terminal 2021 at the Global Ports Forum Awards. 

Hambantota International Port

Following the success of CICT, CMPort entered into a Public Private Partnership with the Sri Lanka Government to manage and operate the Hambantota International Port (HIP), located on the southern tip of the island. The Hambantota International Port Group (HIPG) formed in 2017, is a strategic development project between CMPort and the SLPA.

Hambantota International Port Services (HIPS) was formed alongside HIPG with exclusive rights for developing, managing and operating all the common user facilities of the port. Port control, piloting, mooring, anchorage, towage, security and QHSE (Quality, Health, Safety and Environment) aspects come under HIPS. HIPG and HIPS work together to ensure the efficient and reliable movement of goods and passengers as well as integrating environmental, social and economic sustainability initiatives in all areas of port operations.

Located 10 nautical miles from the global shipping route that links the Far-East with the West, Hambantota International Port is Sri Lanka’s most diversified deep-water, multi-purpose port. It offers a comprehensive range of services for the shipping industry, with a focus on new technologies and environmentally sustainable practices, in keeping with the latest advances in the maritime sector.

HIP is also positioned as a gateway port, and that is the lynch pin to the economy of Sri Lanka. The Hambantota International Port Group (HIPG) in the recent years has aggressively marketed the port internationally, and a key point of their sales pitch is to bring manufacturers of products closer to their markets in European, Middle Eastern or African countries. While doing this, the port is also opening up opportunities for Sri Lankan investors to be part of its industrial matrix by offering the lots in its own industrial park within the port. 

The industrial park offers immense potential for industries who set up within the modern complex which will serve the region and extend to other markets. Being within the port, the park can take advantage of the changing shipping routes that connect Hambantota to the East-West sea-lanes. The Hambantota International Port has grown its markets in the RORO business exponentially.  The port’s efficiency levels, benchmarked every year, are an attractive incentive in this business. Energy services and bunkering business is also an important contributor to the portfolio of services offered by HIP. The port has built great synergies with Sri Lankan and international companies, adding significant value to the Sri Lankan economy.