​Maritime hub: on the Vizhinjam port

The commissioning of the Vizhinjam International Transhipment Deepwater Multipurpose Seaport, developed by Adani Ports and Special Economic Zone Ltd (APSEZ) under a public-private partnership model with the Kerala government, marks a milestone in India’s maritime history. For a country such as India, which relies heavily on foreign ports for handling around 75% of its inbound and outbound transshipment cargo, resulting in an annual revenue loss of approximately $200 million-$220 m, the port presents enormous economic opportunities. Its natural draft of about 20 metres, requiring minimal capital dredging, and its proximity to international shipping routes linking Europe, West Asia and the Far East — the east-west shipping axis — position it as a strong contender to become a transshipment hub. This could potentially bring home a significant portion of Indian cargo transshipment handled by the Singapore, Colombo, Salalah and Dubai ports. Ultra-large container vessels can berth without deviating from their route, thereby saving costs. As India’s first semi-automated port equipped with remote-controlled quay cranes and an AI-powered vessel traffic management system, Vizhinjam will significantly reduce vessel turnaround times. India’s container throughput capacity last year was approximately 20 million TEUs (twenty-foot equivalent units), contrasting with China’s 330 million TEUs. This highlights the need for modern ports such as Vizhinjam along India’s coastline.

Following the project’s agreement in 2015, the Kerala government faced challenges, including protests from fisherfolk supported by the Latin Church, natural calamities and the COVID-19 pandemic. Commercial operations commenced in July 2024, with 265 ships, including large mother ships, having berthed so far. In the first phase, the Kerala government invested ₹5,595 crore, Adani Ports spent ₹2,454 crore, and the Union government provided a viability gap fund loan of ₹818 crore — a funding structure that sparked political debate. For Vizhinjam, an all-weather port, to become a game-changer in South Asia’s maritime trade, the Centre and the State must ensure the timely completion of rail and road connectivity, which is crucial for leveraging the port’s full potential. This will facilitate efficient cargo delivery to the entire hinterland of South India. The subsequent development phases, for which APSEZ and the Kerala government have signed an agreement involving an investment of around ₹9,500 crore by 2028, must also be implemented promptly. Warehousing, logistics, and industrial facilities are essential for the port to evolve into a thriving commercial maritime hub.