Hambantota International Port Group (HIPG) has signed an agreement to invest USD 108 million in new container handling equipment, marking a major expansion of its container terminal capacity and reinforcing Sri Lanka’s position as an emerging logistics hub in the Indian Ocean.

The agreement, signed at a ceremony held at the Hilton Colombo on March 26, brings together HIPG and Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) to procure six quay cranes, 16 rubber-tyred gantry cranes (RTGs) and 40 trailers, under the initial phase of the port’s Phase II container terminal development.

Speaking at the ceremony, H.E. Qi Zhenhong, Ambassador of the People’s Republic of China to Sri Lanka, said, “I wish to express my sincere appreciation to all those who have long cared for, supported, and contributed to China–Sri Lanka port cooperation. Today’s signing marks another important achievement in deepening bilateral cooperation in the port sector and advancing high-quality Belt and Road cooperation. It reflects our shared commitment to joint development and mutual benefit, and will inject new momentum into the development of Sri Lanka’s port system.”

The investment comes amid growing demand for alternative logistics hubs as global shipping patterns continue to shift, particularly due to geopolitical tensions in the Middle East. HIP’s location, just 10 nautical miles from the main East–West shipping route, positions it as a reliable and efficient option for shipping lines seeking…