Hambantota International Port Group (HIPG) has clarified its vehicle storage policy following recent media reports, stating that long-term vehicle storage at the port is largely the result of legacy import restrictions and administrative delays rather than an operational strategy.
The port currently accommodates more than 50,000 vehicles, including both transshipment cargo and locally imported vehicles. However, HIPG said only 1,278 vehicles have remained in the yard for more than three months, while 581 vehicles have been at the port for over a year, all belonging to the local import segment.
According to HIPG, around 400 of the 581 vehicles were imported before Sri Lanka resumed vehicle imports in 2025, while 175 vehicles date back to the period before the government’s vehicle import restrictions introduced in 2020. Another 178 vehicles have remained at Hambantota Port since before HIPG took over management of the facility in December 2017.
The port operator stressed that its business model is centered on efficient cargo movement rather than earning revenue from storage fees.
“Ports are designed to facilitate cargo movement, not to serve as long-term vehicle storage yards. Every vehicle that remains in the Port for months or years occupies valuable operational space required to handle new cargo and support the continued growth of Sri Lanka’s automotive logistics sector,” HIPG said.
HIPG noted that Hambantota offers one of the region’s most customer-friendly storage policies. Imported vehicles receive 10 days of free storage, with charges beginning from the 11th day, while transshipment cargo enjoys 21 days of free storage, with charges applicable only from the 22nd day. Before HIPG assumed management of the port, customers were provided only three days of free storage.
The port explained that delays in clearing vehicles are often caused by documentation issues, banking procedures, financing arrangements and other administrative processes that are beyond the port’s control. Such delays lead to the accumulation of vehicles in storage yards, reducing space available for growing roll-on/roll-off (Ro-Ro) cargo volumes.
HIPG emphasized that storage charges are intended as an operational tool to encourage timely cargo clearance and efficient utilization of port space, rather than as a source of revenue.
The company also highlighted the concessions it has extended during exceptional market conditions. During Sri Lanka’s vehicle import restrictions and subsequent cross-border disruptions, HIPG granted substantial demurrage waivers and storage concessions to customers, regardless of whether the vehicles were later re-exported or cleared into the domestic market.
More recently, following disruptions to vehicle transshipment through the Gulf region, the port introduced a storage cap mechanism to prevent storage charges from exceeding reasonable levels relative to vehicle values.
“Our objective has always been to generate value through cargo handling and logistics services, not through long-term storage charges,” HIPG said.
The port added that all requests for waivers, concessions and special storage arrangements are assessed individually by port management based on prevailing market conditions and customer circumstances.
HIPG reaffirmed its commitment to working closely with Sri Lanka Customs, importers and industry stakeholders to resolve outstanding legacy vehicle cases while ensuring efficient cargo flow to support Sri Lanka’s trade and economic growth.
