Vizhinjam International Transhipment Deepwater Multipurpose Seaport
The commissioning of the Vizhinjam International Transhipment Deepwater Multipurpose Seaport is a significant development in India's maritime sector, developed by Adani Ports and Special Economic Zone Ltd (APSEZ) in collaboration with the Kerala government under a public-private partnership model.
Economic Opportunities
- India relies heavily on foreign ports for 75% of its transshipment cargo, causing an annual revenue loss of approximately $200 million-$220 million.
- The port's strategic location on the east-west shipping axis and its natural draft of about 20 metres make it a potential transshipment hub.
- Ultra-large container vessels can berth without deviating from their route, saving costs.
Modern Infrastructure
- Vizhinjam is India's first semi-automated port with remote-controlled quay cranes and an AI-powered vessel traffic management system.
- The port will significantly reduce vessel turnaround times, enhancing efficiency.
Comparative Capacity
India's container throughput capacity last year was around 20 million TEUs (twenty-foot equivalent units), compared to China's 330 million TEUs, highlighting the need for modern ports like Vizhinjam along India's coastline.
Challenges and Developments
- The project faced challenges like protests from fisherfolk, natural calamities, and the COVID-19 pandemic.
- Commercial operations began in July 2024, with 265 ships, including large mother ships, having berthed to date.
Funding and Political Aspects
- The first phase saw investments from the Kerala government (₹5,595 crore), Adani Ports (₹2,454 crore), and a viability gap fund loan from the Union government (₹818 crore).
- The funding structure has been a subject of political debate.
Future Prospects
- Timely completion of rail and road connectivity is crucial for the port’s full potential to be realized in South Asia's maritime trade.
- Plans for subsequent development phases involve a ₹9,500 crore investment by 2028.
- Infrastructure for warehousing, logistics, and industrial facilities is necessary for the port to become a thriving commercial maritime hub.
