The shipping ministry has given its nod for Vizhinjam Port to function as India's first transshipment port, reported Economic Times.
The shipping ministry's approval allows customs to establish an office at Vizhinjam Port. The Central Board of Indirect Taxes and Customs (CBIC) is expected to provide the final nod within the next three months.
A transshipment port acts as a transit hub where cargo from one ship is transferred to another ship on its way to the final destination. Mostly transshipment happens to transfer smaller cargos on to bigger mother ships which saves shipment cost and time. Since all the ports in the world are not directly linked, transshipment ports are needed.
The project started in 2015 with the goal of completing the ₹7,700 crore deepwater seaport by 2019. However, it is now expected to start operations in the current financial year.
Vizhinjam Port boasts advanced infrastructure and can handle large vessels.
In its initial phase, the port's capacity is set at one million twenty-foot equivalent units (TEUs), with plans to expand further in subsequent phases. Large-scale automation ensures quick turnaround of vessels, and the port is equipped to handle Megamax containerships, which are currently the largest in operation globally.
Significances of Vizhinjam Port
Nearly 75% of India's transshipment cargo is currently handled by ports outside the country, including Colombo, Singapore, and Klang. By establishing Vizhinjam as a transshipment hub, India aims to retain a share of the more than a million containers transshipped annually through foreign Ports.The vision for Vizhinjam Port is to be the preferred international transshipment gateway on the Indian subcontinent, known for operational excellence, industry leadership, and sustainability.
Leveraging cutting-edge infrastructure and technology, the port aims to boost India's blue economy and foster inclusive growth. With this development, Vizhinjam Port is set to become India's first full-fledged deepwater transshipment port.
The Port
Adani Group's Vizhinjam Port represents a significant milestone in India's maritime infrastructure, enhancing its capacity to handle transshipment cargo and reducing reliance on foreign ports.Vizhinjam International Transhipment Deepwater Multipurpose Seaport, also known as the Adani Vizhinjam Port, is an ambitious project located near Kerala's capital, Thiruvananthapuram.
The Vizhinjam Port is designed primarily to cater to container transshipment along with multi- purpose and break bulk cargo. It operates under a landlord model with a Public Private Partnership (PPP) component, where the private partner is Adani Vizhinjam Port Private Limited.
Vizhinjam enjoys inherent locational advantages due to its proximity to the busy international shipping route connecting Europe, the Persian Gulf, and the Far East. It is strategically positioned on the East-West axis, which handles a substantial portion of global maritime trade.
The port's natural depth of 18 meters close to the shore requires no capital dredging, making it suitable for hosting ultra-large container ships with drafts of 20 meters or more. Its curvilinear coast helps mitigate tsunami impact, and minimal erosion reduces maintenance costs.
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