When Zhen Hua 15 – a heavy-load cargo carrier sailing from the East China Sea – unloads at Vizhinjam port this Sunday, it’ll do more than just set down the site’s first gigantic cranes. It’ll also put India on the map for the world’s biggest container ships.

Located near the southernmost tip of the country, the Vizhinjam transshipment container port – the first of its kind in India that will be inaugurated today – will allow India to grab a bigger slice of the international maritime trade currently dominated by China. It will also bolster its aspirations to be an alternative manufacturing hub by reducing logistics costs for cargo coming to and from the country. 

The new terminal will be another feather in the cap of Gautam Adani’s conglomerate. With a dominance that already spans ports, mines, airports and power utilities, Vizhinjam will further cement the billionaire’s status as India’s infrastructure king. 

The proximity to the international shipping routes that account for 30% of global cargo traffic and a natural channel that goes up to 24 meters below the sea makes Vizhinjam an ideal hub for some of the world’s biggest ships to call in. Until now, the biggest container ships have been skipping India because its harbors weren’t deep enough to handle such vessels and docking at neighboring ports such as Colombo, Dubai and Singapore. 

Transshipment refers to transferring cargo from an original ship to another, bigger mother ship at a port on the way to the cargo’s final destination. 

The much-awaited deep-sea port along Kerala’s scenic coastline has been developed by Adani Ports and Special Economic Zone Ltd. in collaboration with the local state government. Adani Ports, India’s largest private sector port operator with a 30% market share, is also developing Israel’s Haifa port and plans to build a hub in Vietnam, as part of its expanding global footprint.

“The Indian Ocean is 50% of sea trade,” said Chakri Lokapriya, chief investment officer at TCG Asset Management Co. in Mumbai. “The Vizhinjam port with its natural advantages will improve operating margins for Adani Ports.”

Poor shipping connectivity has hindered India’s integration into the global value chain, the Reserve Bank of India said in a 2022 report. India’s container traffic was only 17 million TEUs in 2020 versus China’s 245 million TEUs, according to a Feb. 7 statement from the ports ministry.

The Narendra Modi-led government told the parliament that may change soon. 

‘World’s Factory’

“The upcoming ports at Vizhinjam (Kerala) and Vadhavan (Maharashtra) have natural drafts in excess of 18 meters that would enable ultra large container and cargo vessels to call on the ports thereby boosting the efforts to make India the world’s factory” by improving the container and cargo traffic, the ministry said in the statement.

Vizhinjam port, according to Adani Ports website, will offer a quick turnaround of vessels including Megamax container ships. It will have a capacity of 1 million twenty-foot equivalent units, or TEUs, in the first phase at an investment of 77 billion rupees ($925 million). About 6.2 million TEUs will be added in the subsequent phases.

Still, running a transshipment container terminal won’t be an easy feat, even for a company with as rich an experience as Adani Ports which has already faced fishermen protests at this site. A rival facility in Vallarpadam, operated by Dubai Ports World, has been dogged by procedural delays. 

The transshipment hub also needs to be connected by a network of road and rail links to warehouses and factories in the hinterland. Lack of such arterial support “can be the Waterloo” for any port, said Mathew Antony, managing partner of Aditya Consulting, an advisory specializing in infrastructure, ports and logistics.

Strategic Location

The Centre is working on a Maritime India Vision 2030 that seeks to develop world-class mega ports, and transshipment hubs and modernize infrastructure at an estimated investment of 1.25 trillion rupees. 

As large ships become increasingly more vital to Europe and China trade, India can embed itself in that route, given its strategic location between the Suez Canal and the Strait of Malacca.

India’s current container traffic is less than 10% of China’s but if the Vizhinjam port is able to beckon more ships, it’ll give India – and Adani Ports – a stronger footing in global maritime trade.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

New Delhi:

Commemorating a landmark journey, Mundra Port celebrated 25 years of path-breaking operations, highlighting its expansion and evolution as one of the largest ports globally. Since berthing its first ship, MT Alpha on 7 October, 1998, the port has consistently demonstrated a visionary approach, unwavering ambition and impeccable execution, positioning itself as one of the premier and technologically advanced ports on the global map.

Commenting on the occasion, Adani Group Chairman Gautam Adani said, “Mundra, for me, is much more than just a port. It is the beachhead of a horizon of possibilities for the entire Adani Group.”

“25 years ago, when we started the journey, we dreamt of a beacon that would represent India’s march forward. The heartbeat of this commitment resonates not just in Mundra but throughout the nation and echoes in the confidence of every stakeholder who had the faith to sail on this journey with us,” he said.

“As we mark our silver jubilee, Mundra stands as a testament to the wonders that can unfurl when foresight, tenacity and a united community converge. Along with our employees and partners, we did not merely construct a port; we sculpted an emblem of global excellence, transforming an entire region and crafting new blueprints. Our confidence has never been higher and Mundra will continue to trailblaze, setting benchmarks on the global canvas,” Mr Adani said.

Emerging as a crucial trade gateway, Mundra Port has grown into a multimodal hub that drives trade and fortifies economic progression. From its modest inception, it has ascended to prominence and has contributed over Rs 2.25 lakh crore to the state and national exchequer in the past 25 years, emphasising its central role in India’s economic framework. Also, it has generated employment exceeding 7.5 crore man-days since inception.

“Today, Mundra is a showcase of world-class infrastructure – and anyone who sees Mundra will agree that it is a very visible tribute to the vision and the determination of pioneering entrepreneurs like Gautam Adani, who refused to stop thinking big and thinking long-term,” CEO and Whole Time Director Karan Adani said in a statement.

“We see this multidimensional transformation of Mundra, in just 25 years, as the Adani Group’s humble contribution to nation-building. What was once barren is now India’s EXIM gateway and an extraordinary global hub for trade and commerce. I would say, very confidently, that we have succeeded in creating a powerful catalyst for India’s growth – and I also believe that our journey has just begun,” Karan Adani said.

From a handful of tonnes in 1998, Mundra went on to handle 100 MMT in 2014, the first in India to do so. Today, the port handles over 155 MMT (again the first in India), which constitutes nearly 11 per cent of India’s maritime cargo.

Mundra is also the EXIM gateway for container traffic. In fact, 33 per cent of India’s container traffic flows through the port across a dedicated freight corridor that offers the unique facility of double-stack containers from the northern hinterland to Mundra.

Mundra Port serves the vast northern hinterland with seamless multimodal connectivity. As the nation’s largest commercial port, spread over 35,000 acres, Mundra boasts of state-of-the-art facilities including the largest coal, natural gas, and auto terminals.

Its deep draft and all-weather capabilities ensure efficient cargo evacuation and minimal turnaround time. Its strategic advantages and superior facilities have made it the preferred choice for major global shipping lines.

Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group, has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate.