Sri Lanka Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Sri Lanka Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The country's strategic location among the main air navigation routes and marine routes within the Southern Asian region has been making Sri Lanka a lucrative destination for the logistic sector development. During the last 5 years, Colombo Port has been ranked one among Top 50 World Container Ports above other South Asia ports by the World Shipping Council based on the volume of the containers handled. Sri Lankan logistics sector contributes around 2.5% of the nation's GDP (gross domestic product) which represents around USD 2 billion and the industry provides full-time direct employment to over 40,000 people. In addition to the expansion of its seaports, the country also has the highest road density in South Asia, with around 174 km of roads per 100 sq km of land, connecting all major seaports and airports. With the growing recognition as a marine engineering hub in the South Asian region and the growing capacity in offshore engineering has also benefitted the country to get more reputation as an emerging logistics hub providing the complete suite of logistic services. Sri Lanka is aiming at becoming a multimodal logistics hub by providing integrated services and facilities through the development of physical, telecommunication, and information technology infrastructure between the air and seaport facilities in the future.

Key Market TrendsSea Freight Transport Segment is Anticipated to Drive the Market Growth

The deep-water coastline close to Indian Ocean Shipping Lanes is making the Hambantota port has added a unique geographical factor that most of its neighboring ports lack and is helping it to handle the world’s largest container ships and supertankers. With the strong base of air and sea freight transport segments, Sri Lanka's freight and logistics market has been expanding its business. Colombo Port of Sri Lanka alone has the capacity to handle around 20 million TEUs per annum and registers the throughput of more than 8 million TEUs per annum, and has been serving 33 major shipping lines. The timely completion of the ambitious Colombo Port Expansion Project would increase the container handling capacity to 12 Million TEUs per year and will become one of the largest container ports in the world.

Improving Export Performance is Anticipated to Drive the Market

Even during the COVID-19 pandemic, the improving month to month export performance is helping the market to stabilize. According to the customs provisional statistics, May 2020 merchandise exports have bounced back to USD 602 million, compared to April which was the only USD 277 million indicating the path of recovering faster than anticipated. However, the exports are behind USD 355 million compared to USD 957 million recorded in May 2019. Most of the export sectors recovered well during May in comparison to the last month and the two main exports of the country namely tea and apparel registered USD 108 million and USD 219 million respectively, recording the high transaction value. These segments were followed by rubber and rubber finished products with USD 51 million and coconut products USD 52 million and became the next high transactions.

Competitive Landscape

The report covers the key insights on major players operating in the Sri Lanka freight and logistics market. The freight and logistics market in Sri Lanka is growing with the rising number of domestic players. The market is dominated by the domestic and local players who account for more than 70% of registered service providers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
MIT CARGO PVT LTD
FREIGHT LINKS INTERNATIONAL PVT LTD
A P L LOGISTICS LANKA PVT LTD
CEVA LOGISTICS
MIT CARGO PVT LTD
SLFFA CARGO SERVICES LTD
DSV PERSHIP PVT LTD
ACE INTERNATIONAL EXPRESS PVT LTD
AITKEN SPENCE SHIPPING LTD
HAYLEYS FREE ZONE LTD*

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