Vizhinjam is a deep-sea port located in Kerala, primarily designed for transshipment, which involves transferring cargo from one ship to another before it reaches its final destination. Developed by Adani Ports & SEZ in collaboration with the Kerala government, this port has the potential to significantly reduce India's reliance on foreign ports such as Colombo and Singapore, which currently handle a large volume of the country's import-export cargo.
Transshipment is the process where goods are moved from one vessel to another during their journey, and India currently lacks sufficient advanced ports to manage these operations efficiently. As a result, around 75% of India's transshipment cargo is processed at foreign ports, leading to an estimated loss of $200–220 million annually due to fees and shipping costs. Vizhinjam aims to address this issue by allowing direct docking, thus eliminating unnecessary stops.
Vizhinjam is set to attract ships that typically dock at Colombo, Salalah, Dubai, or Singapore for cargo transfers. With its capability for direct docking and reduced deviation from established routes, shipping operations can become more cost-effective and timely.
In the previous year, India processed approximately 20 million TEUs (Twenty-foot Equivalent Units) of container traffic, while China managed around 330 million TEUs. This stark contrast highlights the deficiencies in India's port capacity and technological advancements. The establishment of Vizhinjam will enable India to enhance its competitiveness on a global scale.
The Vizhinjam project was initiated in 2015 but faced several delays due to local protests, natural disasters, and disruptions caused by the COVID-19 pandemic. Nevertheless, commercial operations finally commenced in July 2024, with an impressive tally of 265 ships having already visited the port.
Funding for the initial phase of construction came from various sources:
A viability gap fund is financial support provided by the government to projects that may not be immediately profitable but serve a greater public interest. Critics argue this funding should not benefit private enterprises, while advocates contend it is essential for completing crucial infrastructure projects.
The establishment of Vizhinjam can transform it into the primary gateway for international trade in South India, creating numerous job opportunities, lessening dependence on foreign ports, and enhancing export capabilities. This aligns with India's broader objective of becoming a prominent global trading hub.
The necessity of Vizhinjam Port is clear—it is vital for India to compete with established ports like Colombo and Singapore, manage larger cargo volumes, reduce trade costs, and enhance export profits. As India transitions from dependency on foreign ports to establishing itself as a maritime power, Vizhinjam represents a significant leap forward in the global trade landscape.
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