Global terminal operators and container shipping groups are closely watching a new round of concession opportunities at Sri Lanka's Colombo port, with the rebid for South Asia Gateway Terminals (SAGT) drawing particular attention, according to industry sources.
What Happened
SAGT's 30-year concession rights expire in 2029. Sources in Colombo said Sri Lankan policymakers are not considering a further extension and instead plan to seek fresh proposals. One source indicated that the Sri Lanka Ports Authority (SLPA) has clear signals it will launch a new tender.
SAGT is owned by four partners: John Keells Holdings (42%), Maersk/APMT (33%), SLPA (15%) and Evergreen (10%). The terminal has three berths with a total quay length of 940 metres and an annual capacity of about 2 million TEU, having begun operations in 1999. It handled 1.8 million TEU in fiscal year 2025-26, down 11% year on year, as the Middle East crisis led to a wave of service suspensions, according to available data.
Sources said most major liners are upbeat about staking a claim for SAGT, with indications that Maersk may partner with another European liner to jointly pursue the concession. The Danish group had previously explored collaborating with an Asian carrier, but EU regulatory clearance risks were understood to have derailed that move.
Background
Colombo's booming transhipment traffic has strengthened the growth proposition for investors. Despite capacity strain and growing competition from Indian ports, the port's combined throughput in the first half of 2026 rose 12% year on year to 4.4 million TEU. Until new concessions emerge or become operational, Adani Group's $750 million investment in Colombo West International Terminal (CWIT) is seen as the port's primary growth engine. CWIT has officially launched phase 2 operations, doubling capacity to 3.2 million TEU, after reaching 2 million TEU within 18 months of phase 1 operations.
Impact on Shippers
Colombo is a key transhipment node on China-US export routes, particularly for cargo flows involving South Asia and the Middle East. If the SAGT rebid brings in a new operator, terminal efficiency, berth allocation and service rotations could change over the medium to long term, affecting the schedule reliability of ocean-parcel and ocean-truck-delivery channels routed via Colombo to the US. In the near term, CWIT's phase 2 capacity release should help ease congestion at Colombo and support transhipment efficiency for cargo passing through the port.
On cost, the concession change itself does not directly alter freight rates, but if a new operator adjusts terminal handling charges or prioritises certain carriers, it could indirectly affect surcharge levels on related routes. Customs clearance is not directly affected, but shippers should watch for possible changes in transhipment ports or port rotation sequences as carriers adjust to terminal changes.
Recommendations
Shippers using Colombo transhipment channels should confirm with their forwarders the specific terminal and carrier rotation arrangements when booking, and allow extra transhipment time for possible operational adjustments. For time-sensitive cargo, consider direct US West Coast services or alternative Southeast Asian hub transhipment, and verify bill of lading and transhipment port details in advance to avoid documentation discrepancies caused by port operational changes.