All Transshipment Cargo to Be Handled at Vizhinjam Port Within a Year, Says Karan Adani

Prime Minister Narendra Modi inaugurated the Vizhinjam International Seaport, a significant deep-water maritime project developed by Adani Ports and Special Economic Zone (APSEZ). This port, completed at an estimated cost of Rs 8,867 crore, is expected to handle all of India's transshipment cargo within a year, according to APSEZ managing director Karan Adani.

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The Vizhinjam port aims to reclaim Indian cargo transshipment currently managed by foreign ports like Singapore, Colombo, Salalah, and Dubai. The port's strategic location is the closest and deepest in India to international shipping routes. It is only 10 nautical miles from major routes connecting Europe, the Persian Gulf, and the Far East.

Transshipment Port Benefits

A transshipment port acts as a transit hub where cargo is transferred between ships en route to its final destination. This process often involves moving smaller cargoes to larger mother ships, reducing shipment costs and time. Since not all global ports are directly connected, transshipment ports play a crucial role in global logistics.

Currently, 75% of India's transshipment cargo is handled outside the country. This results in a loss of USD 200-220 million annually in potential revenue for Indian ports. The Vizhinjam project seeks to address this by increasing efficiency and reducing logistics costs by 30% through faster turnaround times.

Future Prospects and Expansion

Karan Adani mentioned that APSEZ aims for 90% resource utilisation at the Vizhinjam port. He also highlighted interest in expanding into South East Asia and East Africa. Regarding India's trade growth, Adani stated it should be double the country's economic growth rate.

Adani discussed the impact of US tariffs on global trade, noting that disruptions can benefit some transshipment points as shipping lines reroute cargo. He observed that manufacturing is increasingly moving to India, boosting exports to the US.

Infrastructure and Capacity

The Vizhinjam port features advanced automation for quick vessel turnaround and state-of-the-art infrastructure to accommodate Megamax container ships. Phase 1 has a capacity of 1 million TEUs, with plans to add another 4.5 million TEUs in future phases.

APSEZ is India's largest port developer and operator with seven ports on the west coast and eight on the east coast. The company operates under a public-private partnership model and received its commercial commissioning certificate for Vizhinjam on December 4, 2024.

Adani expressed optimism about India's position in global trade disruptions. He sees opportunities like the Vadhavan port project in Maharashtra for further expansion when feasible. He also noted that APSEZ has more cash flows than it can currently utilise.

With inputs from PTI