Cos in talks with Adani Ports to move cargo through road
This will give many companies a direct link to Europe because they currently depend on feeder ships handling their import and export containers through Colombo or Vizhinjam. The companies are in the fields of apparel, retail, automotive and other manufacturing sectors.
A port official said, "These are only discussions that are happening because the port is ready for exim operations when road connectivity is established."
He mentioned that work is underway to create the road connectivity by providing a connection to the highway. "This is expected to be completed in three to four months. Once this is ready, trucks will be able to move containers brought by mother ships to different parts of the country," the official said.
This development saves time and cost for companies that import or export components, chemicals, and raw materials between India and Europe or China.
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It is estimated that importers can reduce the time taken to receive a consignment to 25 days or less compared to the 40-50 days if routed via Colombo or Vizhinjam to other ports along the eastern and western coasts using feeder ships. The consignments will then have to be moved by road from these ports to the factories.
The industrial clusters in the southern states are looking forward to EXIM cargo operations to begin. The road connectivity may be ready in three months.
The port expects that 10 to 20% of its containers can be EXIM in three years. The rail connectivity will take three years, so it will take some time for EXIM to become full-fledged.
Vizhinjam Port, which completed a year since the first container ship San Fernando arrived on July 11, 2024, has so far handled 392 ships, including 23 ultra-large ships, and has handled 8.30 lakh containers. The port has a capacity to handle 10 lakh containers in a year and will have capacity to handle 62 lakh containers when subsequent phases are completed. The second phase expansion work is expected to start in the coming months.
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