The recent berthing of the inaugural vessel, Zhen Hua 15, at Adani Port's Vizhinjam transshipment terminal, delivering crucial cranes for the port's expansion, represents a significant milestone for both the Adani Group and the nation. This event signifies the steady progression of the project, which is on track for commercial operations next year. Located strategically on the southwestern coast, Vizhinjam Port is poised to revolutionize India's port infrastructure, as it will have the capacity to accommodate ultra-large ships. This article delves into the pivotal role of Vizhinjam Port in the nation's maritime landscape.
Entry into the transshipment club
Vizhinjam Port Marks India's Inauguration into Transshipment Operations, Filling a Crucial Gap in its Trade Infrastructure. Transshipment ports are essential hubs facilitating the transfer of cargo from large vessels to multiple smaller ones for intermediate unloading along their routes. Currently, major transshipment hubs include Singapore, Shanghai, Busan, and Jebel Ali, near Dubai. Remarkably, China, a significant exporter, boasts over half a dozen transshipment ports. As Adani Group reveals plans for Phase II of the Vizhinjam project, Karan Adani, the CEO of Adani Ports, emphasizes the port's exceptional advantage due to its strategic location, just 10 nautical miles from the international shipping route connecting Europe, the Persian Gulf, and the Far East.
In the fiscal year 2022-23, India's exports reached $770.18 billion, with imports amounting to $892.18 billion. The government has introduced production-linked incentives and other import substitution schemes, with an ambitious goal to achieve total exports of $2 trillion by 2029-30. Karan Adani further underlines that Vizhinjam is set to become a global bunkering hub, supplying environmentally friendly fuels such as hydrogen and ammonia.
Gearing up for the Megamax container ships
Vizhinjam Port has the capability to handle massive megamax container vessels, which are presently the largest container ships in operation, boasting a capacity exceeding 24,000 twenty-foot equivalent units (TEUs). These vessels play a pivotal role in long-haul international shipping routes, as they deliver cost savings and enhance efficiency in the shipping industry through economies of scale. They service multiple transshipment hubs along their routes. Vizhinjam's water depth ranges from 23 to 27 meters, making it exceptionally suitable for accommodating such immense vessels. Notably, no other Indian port, whether public or private, possesses the requisite depth to cater to ultra-large cargo vessels, also known as ULCVs.
Compete with regional rivals
Situated perfectly along the international shipping route traversing from the Persian Gulf and the Arabian Sea to Southeast Asia, Vizhinjam holds an advantageous position. Karan Adani stated, "Vizhinjam possesses the potential to rival top-tier global ports, including Colombo, Singapore, Port Klang, and Jebel Ali." According to the rating agency ICRA's report, "Vizhinjam Port is poised to primarily contend with international ports such as Colombo in Sri Lanka, as well as Salalah in Oman, Dubai, and Singapore, for container transshipment." However, the report also emphasizes that competitive pricing and efficient turnaround times will remain pivotal factors in attracting shipping traffic.
Large capacity under progress
Initially, Vizhinjam Port is projected to have a capacity of 1 million twenty-foot equivalent units (TEUs). In forthcoming phases, an additional expansion of 6.2 million TEUs is anticipated, positioning it as a prominent contender in the region for container cargo operations. To put this into perspective, a capacity of 1 million containers would be adequate to cover approximately 125 football fields.
