Hambantota International Port Group has clarified its vehicle storage policy following recent media reports about vehicles remaining at the port for extended periods.
Hambantota Port currently accommodates more than 50,000 vehicles, including transshipment cargo and local imports.
According to HIPG, 1,278 locally imported vehicles have remained in the port yard for more than three months. Of these, 581 have been stored at the port for more than one year.
HIPG said around 400 of the 581 vehicles were imported before Sri Lanka resumed vehicle imports in 2025.
A further 175 vehicles date back to the period before vehicle import restrictions were introduced in 2020. Meanwhile, 178 vehicles have remained at the port since before HIPG assumed its management in December 2017.
HIPG linked many of the long-standing vehicles to legacy market conditions created by Sri Lanka’s vehicle import restrictions.
HIPG stressed that its business depends on the efficient movement of cargo rather than revenue from storage charges.
“Ports are designed to facilitate cargo movement, not to serve as long-term vehicle storage yards,” said HIPG.
“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,” the company added.
Import cargo receives 10 days of free storage, with charges beginning on the eleventh day.
Transshipment cargo receives 21 days of free storage, with charges applying from the twenty-second day.
Before HIPG assumed management of Hambantota Port, customers received three days of free storage.
HIPG said documentation issues, banking procedures, financing arrangements and other administrative matters can delay cargo clearance.
These delays are beyond the port’s control and can cause vehicles to remain in its facilities for extended periods.
The resulting accumulation reduces the operational space available to accommodate growing RORO volumes.
HIPG described storage charges as an operational tool that encourages timely cargo clearance and the efficient use of limited port space.
During Sri Lanka’s vehicle import restrictions and subsequent cross-border disruptions, thousands of vehicles remained at Hambantota Port for several months.
HIPG granted substantial demurrage waivers and concessions, regardless of whether customers later re-exported their vehicles or cleared them into Sri Lanka.
The port also introduced a storage cap during recent disruptions affecting vehicle transshipment through the Gulf region. This measure prevented storage costs from rising beyond reasonable levels relative to vehicle values.
“These initiatives prove our commitment to supporting customers during exceptional circumstances while ensuring the port continues to operate efficiently,” said HIPG.
“Our objective has always been to generate value through cargo handling and logistics services, not through long-term storage charges,” the company added.
HIPG considers all waivers, concessions and special storage arrangements individually. Port management approves them based on market conditions and customer circumstances.
The company said it would continue working with Sri Lanka Customs, importers and other industry stakeholders to resolve outstanding legacy cases while maintaining efficient cargo flows.
