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India’s first deepwater transshipment port, the Vizhinjam International Seaport Project, has recently come into the limelight with the arrival of its first cargo ship. This project is a significant step forward in India’s journey to enhance its maritime trade and logistics.
Understanding the Vizhinjam International Seaport Project
The Vizhinjam International Transhipment Deepwater Multipurpose Seaport is a grand project initiated by the Kerala Government. The primary intent is to cater to transshipment and gateway container businesses. It also intends to house facilities like a cruise terminal and a liquid bulk berth. The private player Adani Ports Private Limited is developing the port under a Public Private Partnership. This partnership operates on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis.
Located near Thiruvananthapuram, Kerala, the port is strategically placed for easy access to international shipping routes. It aims to compete with global transshipment hubs in cities like Dubai, Singapore, and Colombo. This strategic position could potentially reduce the costs of container movement to and from various foreign destinations.
Unique Features of the Vizhinjam International Seaport
The seaport has a natural depth of over 18 meters, which can be scaled up to 20 meters. This depth is critical as it allows the port to accommodate large vessels and mother ships carrying substantial cargo capacities. The port’s initial capacity in the first phase is set at one million TEUs (twenty-foot equivalent units), but it has the potential for expansion up to 6.2 million TEUs.
Progress and Prospects of the Project
Projected to generate around 5,000 direct job opportunities, the project also stimulates an industrial corridor and boosts cruise tourism. Despite delays caused by natural disasters, protests, and logistical challenges, the project is approximately 65.46% complete. The first phase is expected to be operational by December 2024.
The Need for a Deepwater Container Transshipment Port in India
Even though India has 12 major ports, it does not have a landside mega-port or terminal infrastructure to handle ultra-large container ships. As a result, nearly 75% of India’s transshipment cargo is handled at ports outside India, mainly in Colombo, Singapore, and Klang. In the fiscal year 2021-22, out of India’s total transshipment cargo of about 4.6 million TEUs, approximately 4.2 million TEUs were handled outside India.
Developing a port into a Transshipment Hub has many potential benefits. These include forex savings, foreign direct investment, increased economic activity at other Indian Ports, development of related logistics infrastructure, employment generation, improved operation/logistics efficiencies, and increased revenue share. Furthermore, it would boost related businesses like ship services, logistics, and bunkering.
A deepwater container transshipment port can attract a significant share of the container transshipment traffic currently diverted to Colombo, Singapore, and Dubai.
The development of the Vizhinjam International Seaport is a crucial step towards enhancing India’s maritime trade capacities and capabilities. The successful completion and operation of this seaport will significantly contribute to the nation’s growth and development, and boost employment opportunities.