Colombo West International Terminal (CWIT) has doubled its annual capacity to 3.2m TEU following a US$750m Phase 2 expansion, giving Sri Lanka's first fully automated container terminal the ability to work three ultra-large container vessels simultaneously.

Sri Lankan Prime Minister Harini Amarasuriya inaugurated the second phase, which positions CWIT to handle nearly 25% of the Port of Colombo's 13m TEU target by 2028. The timing matters for carriers and shippers: Colombo's terminals are running hot, with Hapag-Lloyd reporting yard density above 130% across the port's facilities.

The equipment ramp-up preceded the ceremony. In August, CWIT took delivery of two ship-to-shore cranes and three electric cantilever RMGs from ZPMC. The STS cranes offer 65t lifting capacity, a 74m outreach and 56m lift height — among the tallest in the region, according to the terminal. A further four STS cranes and five CRMGs from ZPMC were due by the end of September, taking the fleet to 14 STS cranes and 30 CRMGs.

Volumes running ahead of plan

Phase 1 entered service in 2025 with eight STS and 18 automated RMG cranes supplied by ZPMC and integrated with ABB automation systems. The terminal operates as a joint venture between Adani Ports and Special Economic Zone (APSEZ), John Keells Holdings and the Sri Lanka Ports Authority.

Demand has outpaced expectations. In March 2026, CWIT handled its one millionth TEU, becoming the fastest terminal in the region to reach that milestone — a record the operator attributes to robust underlying demand at the Port of Colombo, which absorbed the new capacity almost immediately.

John Keells Holdings reported in its Q1 results that CWIT handled 460,840 TEU during the quarter, above planned levels, and described a "strong ramp-up". The company said the terminal "has effectively reached full utilisation of its phase 1 capacity based on the recent run rate of volumes" — a signal that Phase 2 arrives none too soon. APSEZ puts cumulative throughput at 2m TEU within the terminal's first 18 months, cementing its role as a transshipment hub on the East-West trade route.

"The success of Colombo West International Terminal demonstrates what Sri Lanka can achieve when bold vision, trusted partnerships and modern infrastructure come together," Prime Minister Amarasuriya said. "Reaching 2 million TEUs in record time and commencing Phase II today is not just a milestone for the Port of Colombo, but a milestone for our nation's economic future. As Sri Lanka strengthens its position at the crossroads of global trade, investments such as CWIT are creating jobs, attracting international commerce, enhancing competitiveness, and reinforcing our ambition to become the leading maritime and logistics hub of the Indian Ocean."

APSEZ CEO Ashwani Gupta framed the investment in commercial terms. "Doubling CWIT's capacity to 3.2 million TEU with a USD 750 Mn investment is a direct statement of confidence from APSEZ and from the global shipping lines," he said. "Phase II is a landmark for APSEZ's international portfolio and sharpens our position across the Indian Ocean's key trade corridors. With expanded capacity, full automation and deep-water infrastructure, CWIT is built to be Colombo's premier transshipment gateway and contribute to EXIM cargo in Sri Lanka."

Capacity arrives amid regional congestion

The expansion lands as Asian transshipment hubs grapple with vessel bunching and disrupted schedules. In a customer advisory dated September 29, Hapag-Lloyd said vessels were waiting two to three days at Colombo International Container Terminal (CICT) and up to 24 hours at CWIT and South Asia Gateway Terminals (SAGT). The liner warned delays for window vessels would persist for several weeks, with inter-terminal transfers reaching 50,000 TEU and bad weather compounding the disruption.

The pressure extends well beyond Sri Lanka. Hapag-Lloyd has suspended bookings to Manila, Batangas and Subic Bay due to congestion and severe constraints on depot and empty-container capacity. The wider network continues to absorb the effects of vessel diversions and schedule disruption linked to the ongoing crisis in the Strait of Hormuz, while major Chinese ports including Shanghai and Ningbo are managing fallout from the recent typhoon season.

For carriers and forwarders routing East-West transshipment cargo through the Indian Ocean, CWIT's additional 1.6m TEU of capacity offers a pressure valve at a moment when competing hubs are turning vessels away — and Colombo now has a credible path toward its 13m TEU ambition by 2028.