Introduction

The Adani Group’s Vizhinjam International Seaport is set for a substantial investment of approximately ₹20,000 crore by 2028, according to Karan Adani, managing director of Adani Ports and SEZ (APSEZ). The project, India’s First Transshipment hub and Deepwater Container Terminal, is poised to revolutionize the nation’s maritime infrastructure.

Investment and Project Phases

• APSEZ will contribute around ₹10,000 crore to the project, with the Kerala government and additional stakeholders making up the remaining investment. The Kerala government has given 500 acres of land.
• Operations commenced on 12th June,2024 with the arrival of the MV San Fernando, a vessel chartered by Maersk, the world’s second-largest shipping company.
• The commissioning of Phase-I is scheduled for December, but it may be advanced to September. Phases II to IV are expected to be completed by December 2028.
• Karan Adani announced that the company is awaiting environmental and regulatory approvals by October before proceeding with the remaining phases.
• By the end of the project, the total investment from both the Kerala government and Adani Vizhinjam Port will reach ₹20,000 crore.

Why India Needs a Container Transshipment Port ?

Lack of Infrastructure for Ultra-Large Container Ships:

• India, despite having 13 major ports, lacks the necessary landside mega-port and terminal infrastructure to handle ultra-large container ships.
• This deficiency forces the country to rely on foreign ports for a significant portion of its transshipment needs.

Current Transshipment Scenario:

• Approximately 75% of India’s transshipment cargo is managed at ports outside India, with Colombo, Singapore, Dubai, and Klang being the primary hubs.
• In the fiscal year 2021-22, India’s total transshipment cargo was about 4.6 million twenty-foot equivalent units (TEUs). Of this, around 4.2 million TEUs were handled outside the country.

Phase-I

• Adani highlighted the progress of Phase-I, stating that the port already has 600 meters of operational quay length and 7,500 container yard slots ready to accept cargo.
• While the initial handling capacity for Phase-I is projected at 1 million twenty-foot equivalent units (TEUs) per annum, Adani is confident that this capacity will increase to 1.5 million TEUs.
• The total investment for Phase-I stands at ₹8,867 crore, with contributions from the state government (₹5,596 crore), Adani Group (₹2,454 crore), and the Centre’s viability gap funding (over ₹800 crore).

Technological Advancements

• The Vizhinjam port boasts South Asia’s most advanced container handling technology, surpassing even Adani’s highly advanced Mundra Port.
• Once the automation and the Vessel Traffic Management System are completed, Vizhinjam will stand out as a world-class facility.
• Kerala Chief Minister Pinarayi Vijayan emphasized the strategic location of the port, just 11 nautical miles from international shipping lanes, and its natural deep depth of 20 meters, making it ideal as a “port-of-ports or motherport.” The port is expected to create 5,000 jobs.

A Milestone for Indian Ports

• The recent development marked the debut of India’s first automated port with state-of-the-art infrastructure capable of handling large ships.
• The San Fernando, a 300-meter-long container vessel operated by Maersk with a capacity of 8,000-9,000 TEUs, utilized the port to offload about 2,000 containers and facilitate 400 container movements within the vessel.

Conclusion

The Vizhinjam International Seaport is a significant milestone for India’s maritime sector, combining large-scale public-private investment with cutting-edge technology. As the project progresses, it promises to boost India’s trade capabilities, create thousands of jobs, and establish a new benchmark for port operations in the region.