Sri Lanka’s bulk and conventional cargo landscape: Current state and future potential

Ultimately, Sri Lanka’s ability to fully realise the potential of its bulk and conventional cargo sector will depend on how well it balances infrastructure development, regulatory reform, and economic decentralisation

Looking ahead, Colombo Port is nearing its capacity limits due to its location in a densely populated urban area, with limited land available for expansion. This makes the case for developing ports like Hambantota, Galle, and Trincomalee even stronger. Diversifying operations across other ports in Sri Lanka, would not only ease congestion in Colombo but also distribute economic activity more evenly throughout the island

By Ceylon Association of Shipping Agents 

Understanding conventional and break-bulk shipping

Conventional and break-bulk shipping refers to cargo that cannot be containerised due to size, shape, or handling complexities. These types of cargo are typically oversized, awkwardly shaped, or require special handling, making them unsuitable for standard containers. In such cases, using conventional or break-bulk vessels allows for greater flexibility and cost-efficiency, particularly when transporting large volumes of a single type of cargo.

Break-bulk cargo can generally be categorised into two main forms: liquid bulk and dry bulk.

Liquid Bulk includes commodities such as crude oil, petroleum products, and other liquid chemicals. These are typically transported using tankers or specialised liquid cargo carriers.

Dry Bulk covers materials like iron ore, steel, fertiliser, grain, and other dry commodities. These are transported in bulk carriers designed for such goods.

In addition to these, there are general-purpose vessels, which are closely related to conventional vessels. These ships are highly versatile and can carry a mix of cargo types—including containers, vehicles, package cargo and machinery within a single voyage. This flexibility makes them a valuable asset in global trade, especially for routes or shipments that require diverse cargo handling.

Just as container vessels have evolved, the conventional and break-bulk carriers have also developed and continue to play a significant role in global logistics trade offering customers tailored logistics solutions and economy of scale, which is paramount importance to the industry. 

A strategic overview of Sri Lanka’s major ports and their cargo operations

Sri Lanka’s port infrastructure can be strategically positioned classified into five primary ports: Colombo, Trincomalee, Galle, Kankesanthurai (KKS), and Hambantota. While Colombo remains the epicentre of maritime activity, each port plays a distinct role in handling various types of cargo, from conventional and break-bulk to bulk and Ro/Ro (roll-on/roll-off) operations.

Colombo Port

Colombo is the busiest and most commercially significant port in Sri Lanka. According to the latest port statistics, Colombo handles an average of 4–5 conventional vessels per month, totalling approximately 50 conventional vessel calls annually. In addition, around 20 bulk vessels, including those carrying liquid cargo, fertiliser, and steel, call at the port each month—adding up to approximately 230 bulk vessel calls annually. Combined, Colombo manages around 280 conventional and bulk vessel arrivals each year.

In terms of cargo tonnage, Colombo handles:

Bulk cargo (e.g., vehicles, locomotives, project cargo): approx. 600,000 tonnes

Dry bulk (e.g., fuel, cement, wheat): approx. 1.5 million tonnes

Liquid bulk (e.g., crude oil, petroleum): approx. 5 million tonnes

This brings Colombo’s total annual cargo throughput to nearly 7 million tonnes without its container volume, underscoring its central role in national logistics.

Trincomalee Port

Trincomalee is Sri Lanka’s second-most active bulk port, handling around 7 vessel calls per month, or approximately 85 annually. It plays a significant role in dry and liquid bulk handling, with annual volumes as follows:

Fuel: approx. 500,000 tonnes

Cement: approx. 1 million tonnes

Wheat: approx. 650,000 tonnes

The port’s total annual throughput is around 2.5 million tonnes.

Galle Port

Galle sees minimal activity in conventional cargo, averaging only six vessel calls per year. Its operations are primarily limited to small-scale cargo handling such as minor bulk consignments, passengers and other auxiliary services. Its annual throughput of cargo is estimated at just 250 to 500 tons.

Kankesanthurai (KKS) and smaller northern ports

Ports such as KKS and Point Pedro are relatively minor in scale in terms of cargo handled. Together, they handle about 40 small vessels per year. These ports typically accommodate small crafts and barges due to shallow waters and limited infrastructure, and they contribute insignificantly to overall cargo volume.

Hambantota Port

Hambantota is unique among Sri Lanka’s ports in being managed by a private operator, China Merchants Port Holdings. Originally constructed as a container port, it has evolved into a key hub for bulk, Ro/Ro (car carriers), and liquid cargo operations. Based on recent data:

Conventional cargo vessels: approx. 400 annually

Ro/Ro vessels: approx. 270 annually

Annual cargo volumes at Hambantota include:

Bulk cargo (e.g., iron, cement): approx. 500,000 tonnes

Dry bulk (e.g., fuel, cement, wheat): approx. 900,000 tonnes

Liquid bulk (e.g., crude oil, petroleum): approx. 1 million tonnes

Hambantota’s total annual throughput is estimated at 1.6 million tonnes without the container volume, however there is a growing capacity in container handling due to recent infrastructure investments.

In Sri Lanka, the handling of bulk and conventional cargo is largely influenced by the geography of its ports and the proximity of factories, importers, and buyers. Colombo Port, being the central and most developed port, has naturally assumed the leading role due to its infrastructure and access to key markets. However, this centralisation has also highlighted the need for strategic diversification.

Ports like Trincomalee and Hambantota were developed with the intention of expanding Sri Lanka’s maritime capabilities. Trincomalee, for instance, is geographically well-positioned and boasts one of the world’s deepest natural harbours. Yet, its cargo volume remains limited due to the presence of only a few active customers—mainly wheat, oil, cement-related operations and other project cargo. Hambantota, on the other hand, was developed as a complementary port to Colombo, initially focusing on car carriers and later expanding to handle project cargo, cement, oil bunkering, and other bulk operations.

A significant insight is that port development greatly affects the strategic positioning of cargo owners and businesses to setup their own business structure and operation. Colombo remains dominant because of its accessibility to main markets and already developed ecosystem. It is evident that private sector investment in conventional and bulk cargo handling capabilities is almost nil, primarily due to profitability concerns and infrastructure limitations.

Currently, Sri Lanka has five major terminals in Colombo (two government-owned, others privately operated), with the private sector focusing heavily on container operations, where the return on investment is higher. In contrast, conventional and bulk cargo handling has largely remained within the domain of the Sri Lanka Ports Authority (SLPA), which has played a critical role in ensuring national economic interests are safeguarded—particularly when it comes to the importation of raw materials that directly affect domestic production costs and, ultimately, consumer prices.

Still, ports like Galle and KKS also handle smaller volumes of bulk and conventional cargo, and the efforts by SLPA to sustain and develop these services are essential in preventing operational and cost-related challenges for ship owners and importers.

Looking ahead, Colombo Port is nearing its capacity limits due to its location in a densely populated urban area, with limited land available for expansion. This makes the case for developing ports like Hambantota, Galle, and Trincomalee even stronger. Diversifying operations across other ports in Sri Lanka, would not only ease congestion in Colombo but also distribute economic activity more evenly throughout the island.

However, this decentralisation can only be successful if infrastructure and regulatory support are developed simultaneously. Many entrepreneurs and businesses have shown interest in establishing factories closer to ports like Hambantota and Trincomalee, but challenges such as high transport costs, lack of customs facilities, and regulatory red tape have been major deterrents. With a more business community aligned port development, we would be able to attract larger volumes of cargo if the cost of inland transport can be minimised by re-positioning factories nearer to ports outside Colombo. This require collaborative efforts from government, ports and business community which will create a win-win situation for all.

Strategically, future growth in bulk cargo—such as steel, cement, fertiliser, and liquid bulk—is expected to rise, especially with post-crisis economic stabilisation. 2024 has already seen a return to healthy volumes, particularly in industrial and agriculture sector, and this growth is expected to continue.

Despite promising developments, both Colombo and Hambantota are increasingly shifting focus toward containerisation. Colombo’s 2050 vision places heavy emphasis on container volume growth, and while conventional cargo is acknowledged, the development remains theoretical. Hambantota, although geographically advantageous and designated as a port free zone, also seems to be moving more aggressively toward container handling.

Given these trends, the development of bulk and conventional cargo infrastructure—especially in ports like Colombo, Galle, Trincomalee and other ports in Sri Lanka—requires urgent attention. The main bottlenecks are lack of berth options, modern equipment, inefficient handling processes, and limited storage space, all of which increase vessel waiting times and ultimately raise in cost to principals which undoubtedly affects the final cost to end user.

There is, also, significant potential in transshipment for bulk cargo—especially for fertiliser and oil. Hambantota is already advancing in oil bunkering and refinery infrastructure, while Trincomalee offers an unmatched deep-water advantage but lacks pier infrastructure and warehouse development. With strategic investment and collaboration between government bodies, port authorities, and private investors, these ports could be transformed into specialised hubs for conventional and bulk cargo transhipment.

Ultimately, Sri Lanka’s ability to fully realise the potential of its bulk and conventional cargo sector will depend on how well it balances infrastructure development, regulatory reform, and economic decentralisation. If done right, the country could unlock new opportunities, reduce operational costs, and strengthen its position as a regional maritime hub to serve diverse sectors of port activity.