Vizhinjam Port: India sets sail for global maritime prominence

16 Oct 2023 CW Team

Developed by Adani Ports and Special Economic Zone in collaboration with the local state government, this eagerly awaited deep-sea port along Kerala?s scenic coastline has been specifically designed to accommodate some of the world?s largest ships. Its strategic location, proximate to international shipping routes accounting for 30% of global cargo traffic and boasting a natural channel extending 24 meters below the sea, positions Vizhinjam as an ideal hub for these colossal vessels. Previously, the lack of sufficiently deep harbors had led the largest container ships to bypass India, choosing to dock at neighbouring ports like Colombo, Dubai, and Singapore.

Transhipment, the process of transferring cargo from one ship to another (a larger mother ship) at a port en route to its final destination, will be a vital function of this new port. The endeavour to integrate India into the global value chain has been hampered by inadequate shipping connectivity, as highlighted in a 2022 report by the Reserve Bank of India. However, the government, under the leadership of Prime Minister Narendra Modi, has expressed optimism about India?s future in maritime trade.

The upcoming ports at Vizhinjam in Kerala and Vadhavan in Maharashtra, both offering natural drafts in excess of 18 meters, are poised to accommodate ultra-large container and cargo vessels. This development aligns with the government's vision to transform India into the "world?s factory" by enhancing container and cargo traffic. The Vizhinjam port, as stated on the Adani Ports website, will facilitate swift vessel turnaround, accommodating Megamax container ships, with a capacity of 1 million twenty-foot equivalent units (TEUs) in its initial phase, requiring an investment of 77 billion rupees ($925 million). Subsequent phases will see an addition of about 6.2 million TEUs.

However, the operation of a transshipment container terminal comes with its challenges, even for an experienced company like Adani Ports. Previous protests by fishermen and procedural delays faced by a rival facility operated by Dubai Ports World in Vallarpadam highlight the complexities of such endeavours. Additionally, the successful functioning of the transhipment hub necessitates a well-connected network of road and rail links to warehouses and factories in the hinterland, an essential factor for any port's success, according to industry experts.

India?s federal government is actively pursuing the Maritime India Vision 2030, a comprehensive initiative aimed at developing world-class mega ports, transhipment hubs, and modernising maritime infrastructure, requiring an estimated investment of 1.25 trillion rupees. As large ships continue to play a pivotal role in European and Chinese trade, India, owing to its strategic location between the Suez Canal and the Strait of Malacca, stands poised to integrate itself into these vital trade routes. Although India's current container traffic represents less than 10% of China?s, the successful operation of the Vizhinjam port has the potential to significantly enhance India?s standing in global maritime trade, providing both the country and Adani Ports with a stronger foothold in this dynamic industry.

When the Zhen Hua 15, a heavy load cargo carrier sailing from the East China Sea, unloaded at Vizhinjam port on October 15, it marked a significant milestone for India. Not only will it introduce the site's first massive cranes, but it will also firmly establish India on the world map for hosting the largest container ships. Situated near the southernmost tip of the country, the Vizhinjam transhipment container port, set to be inaugurated on October 15, signifies India's ambition to claim a larger share of the global maritime trade, a sector currently dominated by China. This pioneering port will also bolster India's aspirations to become a key manufacturing hub by reducing logistics costs for cargo transportation to and from the country. Developed by Adani Ports and Special Economic Zone in collaboration with the local state government, this eagerly awaited deep-sea port along Kerala?s scenic coastline has been specifically designed to accommodate some of the world?s largest ships. Its strategic location, proximate to international shipping routes accounting for 30% of global cargo traffic and boasting a natural channel extending 24 meters below the sea, positions Vizhinjam as an ideal hub for these colossal vessels. Previously, the lack of sufficiently deep harbors had led the largest container ships to bypass India, choosing to dock at neighbouring ports like Colombo, Dubai, and Singapore. Transhipment, the process of transferring cargo from one ship to another (a larger mother ship) at a port en route to its final destination, will be a vital function of this new port. The endeavour to integrate India into the global value chain has been hampered by inadequate shipping connectivity, as highlighted in a 2022 report by the Reserve Bank of India. However, the government, under the leadership of Prime Minister Narendra Modi, has expressed optimism about India?s future in maritime trade. The upcoming ports at Vizhinjam in Kerala and Vadhavan in Maharashtra, both offering natural drafts in excess of 18 meters, are poised to accommodate ultra-large container and cargo vessels. This development aligns with the government's vision to transform India into the world?s factory by enhancing container and cargo traffic. The Vizhinjam port, as stated on the Adani Ports website, will facilitate swift vessel turnaround, accommodating Megamax container ships, with a capacity of 1 million twenty-foot equivalent units (TEUs) in its initial phase, requiring an investment of 77 billion rupees ($925 million). Subsequent phases will see an addition of about 6.2 million TEUs. However, the operation of a transshipment container terminal comes with its challenges, even for an experienced company like Adani Ports. Previous protests by fishermen and procedural delays faced by a rival facility operated by Dubai Ports World in Vallarpadam highlight the complexities of such endeavours. Additionally, the successful functioning of the transhipment hub necessitates a well-connected network of road and rail links to warehouses and factories in the hinterland, an essential factor for any port's success, according to industry experts. India?s federal government is actively pursuing the Maritime India Vision 2030, a comprehensive initiative aimed at developing world-class mega ports, transhipment hubs, and modernising maritime infrastructure, requiring an estimated investment of 1.25 trillion rupees. As large ships continue to play a pivotal role in European and Chinese trade, India, owing to its strategic location between the Suez Canal and the Strait of Malacca, stands poised to integrate itself into these vital trade routes. Although India's current container traffic represents less than 10% of China?s, the successful operation of the Vizhinjam port has the potential to significantly enhance India?s standing in global maritime trade, providing both the country and Adani Ports with a stronger foothold in this dynamic industry.