Adani Group's Vizhinjam Port: The Gateway To Future Development (image-X/jaycibby)
‘The gateway to future development’ is how Finance Minister K N Balagopal described the Vizhinjam port in the last budget. Creating history, the port welcomed its first container vessel, Maersk’s ‘San Fernando,’ with nearly 2,000 containers.
The Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ) is reportedly eyeing an investment of up to Rs 10,000 crore ($1.2 billion) to boost the transshipment container port in the port. As per a Bloomberg report, the massive investment is part of the second phase of the project, which is expected to wrap up by 2028.
Read Also: Demands Of Locals Unresolved: Tharoor To Skip Vizhinjam Port’s Opening Ceremony
Why The Port Is A Big Deal
Kerala’s Vizhinjam Port is India’s first trans-shipment port, and with the arrival of the first maiden ship, India has made its entry into the world port business. The port is expected to rank 6th or 7th across the world.
The port is also the first semi-automated container terminal in India. It will serve as a global bunkering hub, supplying clean and green fuels such as hydrogen and ammonia. By 2028, the port is expected to be one of the greatest ports in the world.
Strategically located just ten nautical miles from the International Shipping Route connecting Europe, the Persian Gulf, and the Far East, the port is a way for India to claim a larger share in international maritime trade, which is dominated by China. Big containers do not dock in the country due to its harbours not being deep enough to handle the vessels, also called depth limits. Big containers usually prefer ports such as Colombo, Dubai, and Singapore.
The Vizhinjam Port is the only port with more than 20 metres of depth. Moreover, the port has a natural waterway that can be expanded to 24 metres below the sea. The operations from the port are expected to significantly reduce India’s dependency on foreign transshipment hubs and boost forex reserves.
Notably, the project is highly significant for Adani Group as well. To make the firm the largest in the world by 2030, the Vizhinjam Port is strategically important for Adani Ports in entering a market to offer integrated supply chain solutions to shipping lines.
Read Also: Adani Group’s Vizhinjam Port Welcomes First Mothership; Kerala Creates History
The Opposition’s Stance
Congress leader Shashi Tharoor recently announced his decision to abstain from participating in the celebrations for the “trial run” of a vessel at the port in his constituency on Friday, citing the unresolved issues and grievances in the local community whose lives and livelihoods have been affected by the construction of the port. Although a “strong supporter” of the project, the Congress MP, who is the “longest-serving member of the Board of Directors of the Vizhinjam International Seaport Limited (VISL),” urged the ruling government to take action and fulfil the promises given to the coastal community regarding rehabilitation before the formal commissioning of the port.
The opposition Congress criticised the ruling Pinarayi Vijayan-led CPI(M) government for suppressing the contributions of the earlier Congress government’s role in the materialisation of the project. The grand old party states that the project began after its government, led by Oommen Chandy, signed the agreement with Adani Ports in 2015 via a global tendering process.
The party slammed the Pinarayi Vijayan government for not inviting opposition leader VD Satheesan to the formal reception of the project for the same reasons.
