Karan Adani, Managing Director of Adani Ports and Special Economic Zone Ltd, has revealed that the company aims to make Vizhinjam Port in Kerala, inaugurated by Indian Prime Minister Narendra Modi on May 2, one of the most efficient ports globally.
“We have to complete phase two by 2028, to take this up to 5 million TEU of capacity. Currently we are at 1.2 million TEU. We have to make this one of the most efficient ports, not just in the country, but globally, and help Indian importers and exporters reduce their logistics costs,” Karan Adani said.
“With our network of ports, we should target at least a 25 to 30% reduction in the logistics cost for any container or any cargo which is moving through our ports,” Karan Adani told Asian News International (ANI).
Challenges
He discussed the challenges faced during the construction of the port. They faced two cyclones and strikes too.
“We had 7 million tons of rocks to bring in, which was a big challenge. There were so many challenges, but I must appreciate that the team has been extremely dedicated and strong. And most importantly, I must thank the Government of Kerala, as well as the people of Trivandrum, for supporting the project, even during the toughest times,” he said.
The Managing Director of Adani Ports and Special Economic Zone Ltd. stated that the India-Middle East Europe Economic Corridor (IMEC) is a critical project for the country because it provides an alternate route outside of the Suez Canal.
Transshipment Efficiency
One of the key reasons Vizhinjam could attract containers traditionally handled by Colombo, Jebel Ali, and Singapore is its superior efficiency.
The automated systems being implemented at Vizhinjam, along with its STS Super Post-Panamax cranes, are designed to reduce turnaround times for vessels. Additionally, the port’s direct access to the Arabian Sea and proximity to international shipping lanes allow for quicker cargo movement compared to more congested ports.
Other Key Features
Natural Depth: With a depth of 24 meters, the port can handle large cargo ships, including the world’s biggest ULCS, without the need for extensive dredging.
Each berth at Vizhinjam can handle 24,000 TEU, making it a highly capable port for container transshipment. As India’s first automated and eco-friendly port, Vizhinjam is designed to meet modern sustainability standards, offering a compelling case for shipping lines looking to enhance their environmental credentials.
The port’s planned railway connection and infrastructure development, including India’s third-longest railway tunnel, will make transportation more seamless and efficient.
Shift in Global Shipping Dynamics
The emergence of Vizhinjam as a viable alternative to established transshipment hubs could lead to significant shifts in global shipping routes. Shipping lines and logistics companies may start re-evaluating their operational costs, time efficiency, and fuel consumption, leading to a reorientation of global maritime trade towards South Asia.
As Vizhinjam’s capabilities expand, the port could redefine container transshipment in the region, challenging the status quo of Colombo, Jebel Ali, and Singapore.
Effect on Other Ports
Vizhinjam is set to pose a direct challenge to major transshipment hubs like Colombo, Jebel Ali, and Singapore, reports from India say. Located just 10 nautical miles from the busy Suez-Far East and Far East-Middle East routes, gives it a significant edge in terms of proximity to global shipping lanes.
With a natural depth of 24 meters, the port can easily accommodate large vessels, including Ultra Large Container Ships (ULCS) that currently pass through major international transshipment hubs such as Colombo, Jebel Ali, and Singapore. These shipping routes see heavy traffic between Europe, the Persian Gulf, Southeast Asia, and the Far East.
Colombo is one of the most prominent transshipment hubs in South Asia, handling a significant portion of India’s cargo. However, with Vizhinjam in place, business currently funneled through Colombo will get directed to Vizhinjam. It is said that Colombo’s relatively smaller depth and congestion may also make it less appealing to larger vessels in the future.
