Vizhinjam port inaugurated: What makes it a strategic gem for India

India Today

02-05-2025

Prime Minister Narendra Modi inaugurated the Vizhinjam port in Kerala on Friday, India's first deepwater transshipment port. The inauguration is seen as an important step in improving India's shipping strength and cutting down the cost of moving goods by sea.The Vizhinjam port project has been built at a cost of around Rs 8,900 crore under a public-private partnership model. The port is operated by the Adani Group, while the Kerala government holds the majority share. The port officially began limited operations in July 2023 and has already handled about 250 container ships.In April this year, the port made headlines by receiving MSC Trkiye, one of the largest cargo ships in the world. This vessel can carry over 24,000 containers. Vizhinjam became the first port in India to handle a ship of that size. The port has a natural sea depth of around 20 metres, making it suitable for very large ships without the need for deep digging, which is common in other ports.WHY A TRANSSHIPMENT PORT MATTERSA transshipment port is where cargo containers are moved from one ship to another before reaching their final destination. These ports are important for countries that are part of global trade, as they allow goods to be transferred more easily and quickly.So far, India did not have a full deepwater transshipment port. Because of this, nearly 75% of India's cargo that needed transshipment was sent to foreign ports such as Colombo in Sri Lanka, Singapore, and Jebel Ali in the UAE. This made the movement of goods slower and more expensive.Indian traders had to spend an extra $80 to $100 per container due to this dependence on foreign ports. In total, India is estimated to be losing between $200 million to $220 million every year by not handling its own transshipment cargo. Having a port like Vizhinjam can help stop this loss and improve the country's trade system.Another benefit is that it reduces the risk of delays caused by global tensions or problems in other countries' ports. Being able to manage more cargo within India makes the country more self-reliant and secure in the area of trade.KEY ADVANTAGES OF THE VIZHINJAM PORTVizhinjam is located on the Arabian Sea and is very close to the main international shipping route. This means it can attract large cargo ships travelling between the east and west parts of the world. The shipping route is just 10 nautical miles from the port.The natural depth of the sea near Vizhinjam is between 18 to 20 metres, just a kilometre from the shore. This is deep enough to allow the world's biggest cargo ships to dock without any need for dredging, which is expensive and harms the environment.Another important point is that the port does not face the problem of sand movement along the coast, which many other Indian ports do. This reduces the cost and need for constant upkeep. It is also well connected to the rest of the country. The port is only 2 km from a national highway, 12 km from a major railway line, and 15 km from the Trivandrum airport. This makes it easier to move goods across India quickly.LOWERING SHIPPING COSTS AND BOOSTING TRADERight now, the Vizhinjam port can handle 1 million containers every year. In the future, it is expected to grow and handle an additional 6.4 million containers in two more phases.The project is being handled by Adani Ports and SEZ Ltd, which owns a 28.9% share. The Kerala government holds a 61.5% share, while the central government owns 9.6%. Once fully ready, the port is expected to help India manage more of its own shipping work, reduce costs, and make shipping more efficient.Because of its natural depth and location, Vizhinjam is also expected to save money in the long run, as it won't need as much spending on upkeep. This can make Indian exports more competitive in the global market.India is also building another deepwater port at Vadhvan in Palghar, Maharashtra. Work started there in August 2024. Another large port has been planned at Great Nicobar Island in the Andaman and Nicobar Islands. That project is still waiting for approvals.India currently has 13 major ports and 217 smaller or private ports. The largest container ports in India are Jawaharlal Nehru Port in Navi Mumbai and the Mundra port, both handling more than 7 million containers every year.Must Watch
advertisement