Synopsis: Billionaire Gautam Adani is doubling his investment to $2.4 billion in Vizhinjam, a new mega port in southern India, to accelerate its expansion and attract the world's largest ships. The plan is to increase the port's capacity five-fold to 5 million TEUs by 2028, ahead of the original 2045 target.
Strategically positioned near the southern tip of India, Vizhinjam is close to major international sea routes and features some of the deepest shipping channels, capable of accommodating large vessels.
Billionaire Gautam Adani is increasing his investment to $2.4 billion in Vizhinjam, a new mega port in southern India, to expedite expansion and attract some of the world's largest ships.
"We plan to invest $2.4 billion in the Vizhinjam international transshipment terminal by 2028," stated Karan Adani, Managing Director at Adani Ports and Special Economic Zone Ltd., during a press interaction at the Kerala port.
The objective is to boost capacity five-fold to 5 million TEUs, significantly surpassing the initial target of 3 million TEUs.
Adani announced that the expansion deadline has been moved up to 2028 from the original 2045 target to capture a larger share of international maritime trade, currently dominated by China.
Strategically located near the southern tip of India, Vizhinjam is close to major international sea routes and features some of the deepest shipping channels, capable of accommodating large vessels.
Originally a Rs. 10,000 crore ($1.2 billion) investment, the revised plan doubles the amount to include ship-fueling facilities, a luxury cruise terminal, and a 2-million-ton cement grinding unit, as explained by Karan Adani.
The port recently welcomed its first mother ship, a container vessel operated by A.P. Moller-Maersk, and is in discussions with other major container lines like MSC Mediterranean Shipping Co. and Hapag-Lloyd.
While Hapag-Lloyd currently has no plans to include Vizhinjam in its network, a spokesperson mentioned the potential for future consideration.
The Vizhinjam transshipment port, inaugurated in October, symbolizes the Adani Group's ambition to position India on the global maritime map.
Historically, the world's largest container ships bypassed India due to inadequate harbor depths, opting for ports in Colombo, Dubai, and Singapore instead.
This new investment will also extend the existing berth and breakwater, enhancing the port's capability to handle some of the biggest ships, given its proximity to international shipping routes that manage 30% of global cargo traffic.
With the Vizhinjam port, Adani Ports aims to capture transshipment traffic, significantly reducing India's reliance on overseas ports for 75% of its transshipped cargo.
The port is set to streamline traffic between the US, Europe, Africa, and East Asia.
In conclusion, Gautam Adani's increased $2.4 billion investment in the Vizhinjam mega port is a strategic move to accelerate its expansion and enhance its capacity to accommodate the world's largest ships.
This investment not only aims to boost the port's capacity five-fold by 2028 but also includes significant infrastructure enhancements like ship-fueling facilities, a luxury cruise terminal, and a cement grinding unit.
The Vizhinjam port's strategic location near key international sea routes and its deep shipping channels position it as a major player in global maritime trade, reducing India's reliance on overseas ports and streamlining traffic between major global markets.
This ambitious project underscores the Adani Group's commitment to placing India on the global maritime map.
