Adani's Ambitious Vizhinjam Port to Revolutionize India's Maritime Landscape

By IndraStra Global News Team

Cover Image Attribute: A Chinese vessel carrying cranes for the Vizhinjam International Port arrived and docked at Vizhinjam in Thiruvananthapuram on October 12, 2023. | Source: S. MAHINSHA, The Hindu

In a groundbreaking moment for India's maritime ambitions, the arrival of the Zhen Hua 15 (IMO 8714970, MMSI 477661900), a heavy-load cargo carrier sailing from the East China Sea, at Vizhinjam port marks not only the site's inaugural placement of enormous cranes but also a significant stride toward placing India on the world map for hosting the largest container ships. Situated near the southernmost tip of the country, the Vizhinjam transshipment container port, set to be inaugurated on October 15, promises to reshape India's role in international maritime trade, which China has long dominated. Additionally, it holds the potential to bolster India's aspiration of becoming an alternative manufacturing hub by significantly reducing logistics costs associated with cargo transportation to and from the nation.
Developed through a collaboration between Adani Ports and Special Economic Zone Ltd (APSEZ). and the local state government, the Vizhinjam deep-sea port is a much-anticipated addition to Kerala's scenic coastline. This project not only stands as a testament to Adani Ports' influence, a conglomerate that has faced its share of controversies, but also reinforces Gautam Adani's position as India's infrastructure king. With a portfolio that already encompasses ports, mines, airports, and power utilities, Vizhinjam will further solidify Adani's stature in the realm of Indian infrastructure.
The port's strategic location is a key factor in its potential success. Its proximity to international shipping routes responsible for facilitating 30 percent of global cargo traffic, coupled with a natural channel reaching depths of up to 24 meters below sea level, makes Vizhinjam an ideal hub for accommodating some of the world's largest ships. Only now, India struggled to attract these behemoth container ships due to the inadequacy of its harbors to handle such vessels, leading them to choose neighboring ports in Colombo, Dubai, and Singapore. Vizhinjam's establishment as a transshipment container port will overcome this limitation, facilitating the transfer of cargo from original ships to larger mother ships at this crucial juncture on the route to their final destination.

Poor shipping connectivity has hindered India's integration into the global value chain, as highlighted in a 2022 report by the Reserve Bank of India. In 2020, India's container traffic was a mere 17 million TEUs, a stark contrast to China's impressive 245 million TEUs, as per data from the ports ministry. However, the Narendra Modi-led government has expressed its commitment to changing this narrative.
The upcoming Vizhinjam port and the forthcoming Vadhavan port in Maharashtra, both equipped with natural drafts exceeding 18 meters, will enable the docking of ultra-large container and cargo vessels, potentially solidifying India's position as the "world's factory." Vizhinjam Port, as stated on the Adani Ports website, is designed to ensure a rapid turnaround for vessels, including Megamax container ships. In its initial phase, the port will have a capacity of 1 million twenty-foot equivalent units (TEUs), representing an investment of 77 billion rupees ($925 million), with plans to add approximately 6.2 million TEUs in subsequent phases.
Despite these promising prospects, the operation of a transshipment container terminal is not without its challenges. Even a company with Adani Ports' extensive experience has encountered protests from local fishermen. Furthermore, a competing facility in Vallarpadam, operated by Dubai Ports World, has faced procedural delays. For Vizhinjam to thrive, it must also be integrated into a network of road and rail links that connect it to warehouses and factories in the hinterland, as the absence of such support systems can prove detrimental to any port's success.
The central government is actively working on the Maritime India Vision 2030, a comprehensive plan to develop world-class mega ports and transshipment hubs with modernized infrastructure. This endeavor represents an estimated investment of 1.25 trillion rupees, and it aligns with the increasing importance of large ships in European and Chinese trade. India's strategic location between the Suez Canal and the Strait of Malacca ideally positions it as a key player in these global trade routes.
While India's current container traffic represents less than 10 percent of China's, the inauguration of the Vizhinjam port signifies a significant step toward attracting more international vessels. This achievement promises to strengthen India's position in global maritime trade and cements Adani Ports' status as a key player in the world of infrastructure development. As the inaugural date of October 15 approaches, the world watches with anticipation, awaiting the transformation of Vizhinjam into a vital hub for international maritime commerce.

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