Vizhinjam Port will become the game-changer as it will enable domestic handling of transshipment cargo.
Dr Divya S Iyer,
How do you visualise the growth trend of the Indian maritime sector?
India is eyeing to become the global maritime leader by 2047. Kerala has a significant role to play in that, given the extensive coastline of 590 km (which forms 10% of India’s coastline) and scope for maritime activities in the state. The Vizhinjam International Seaport Thiruvananthapuram is all set to play a pivotal role in this canvas.
The roadmap for the same has been laid out in documents like 'Maritime India Vision 20230' and 'Maritime Amrit Kaal Vision 2047'. The Union Government itself had stated that it is steadfast to make India's ports break into the top 25 ports of the world. To achieve this target, huge investments are being made in logistics, infrastructure, and shipping. Also, the nation is poised to unlock a sea of opportunities by harnessing the potential of the blue economy. With a coastline that runs into 7,517 km spreading across nine coastal states and 1,382 islands and with 12 major ports and 200 non-major ports, the nation will script a transformative journey in the maritime sector.
When we look at the World Bank's Logistics Performance Index (LPI) Report — 2023 (released in April 2023), India has reached 22nd rank in the International Shipment category as against 44th rank in 2014. Also, Indian Ports ‘Turn Around Time’ has reached 0.9 days which is better than the USA (1.5 days), Australia (1.7 days), Singapore (1.0 days), and others. All these point to a brighter future in the maritime sector.
Can you give an overview of the development of Vizhinjam Port?
An ancient port had operated from Vizhinjam. Early Dravidian civilizations like Ay, Pandya, Chera, and Chola used Vizhijam Port to carry out maritime trade extending from the Red Sea and beyond to Far East Asia. Now, new archaeological studies have thrown light on the history of Vizhinjam before these periods.
As time progressed, Vizhinjam lost its significance as a maritime port and political centre and slowly slipped into oblivion. Though a plan to construct a modern port at Vizhinjam was considered in the 1940s, it didn’t materialise.
The idea of developing an International Deepwater Seaport at Vizhinjam (located on the southwestern coast of Kerala near the state capital Thiruvananthapuram) is more than two decades old. The project was initially proposed to be implemented directly by the Government of Kerala (GoK). But the first global tender in 2003-04 issued by GoK failed. Then in 2004, Vizhinjam International Seaport Limited (VISL), a company fully owned by GoK, was constituted as an implementing agency for the project.
VISL in 2007 and 2011 floated tenders to execute the project through Public-Private Partnership (PPP) mode. But they were unsuccessful.
In November 2013, GoK approved a new model as suggested by AECOM India Private Limited (AECOM), who were technical consultants, for the development of the project. As per the new model, the development and operation/maintenance of the Vizhinjam International Deepwater Multipurpose Seaport Project through PPP were proposed on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis. The project was to be implemented as a landlord port model, wherein the land procurement, external infrastructure, and construction of breakwater would be undertaken by GoK through VISL, the implementing agency for the project. The chosen private concessionaire shall be responsible for funding and development of dredging and reclamation of land from the sea, construction of berths, roads, substations, superstructure, and equipment, and operation of the port.
Accordingly, in December 2013, VISL invited two international competitive bids (ICB)/global tenders. Adani Ports and SEZ Private Limited (APSPL) was the lone bidder.
The Letter of Award was issued (July 2015) to APSPL and the Concession Agreement was signed between Adani Vizhinjam Port Private Limited (Concessionaire) and the GoK on 17 August 2015.
The total cost of the project has been pegged at Rs Rs 8,493.44 crores. Of this, the Government of Kerala will bear 61.5% of the cost, AVPPL will bear 28.9%, and the Government of India, 9.6%.
The project is also the first and only in the country in the port sector to receive sanction under the VGF scheme.
What are the challenges faced in the development of the port infrastructure?
The challenges are manifold and that is what makes the project unique in its own right. Some of the challenges we faced were:
- · The stalling of activities in the construction sector across the country owing to various calamities like COVID-19 and its consequences, cyclones, floods, and other unforeseen events did affect the timely progress of the project.
- · The sheer scale of activities in a rather non-industrial region did pose some serious concerns to the local community, which have been taken care of with utmost seriousness.
- · Land being a scarce resource in the state of Kerala does pose serious challenges to hinterland development around the port which calls for innovative solutions.
What are the latest handling technologies and practices being adopted for better productivity and efficiency?
The port has deployed cutting-edge technology and automation to ensure high productivity and efficiency at par with global standards. Phase 1 itself provide RMGCs an 800-m quay length and capacity to handle one million TEUs annually.
On full completion by 2040, Vizhinjam Port will have a 2 800-m quay length and capacity to handle 7.2 million TEUs annually.
For container handling, AVPPL had placed the order for eight Rail Mounted Quay Cranes (RMQC) and 24 units of Rail Mounted Gantry Cranes (RMGC) to Shanghai Zhenhua Port Machinery Company Limited (ZPMC) on 3 May 2018.
The first lot of container handling equipment (11 units of RMGC and 4 units of RMQC cranes) from ZPMC, China was delivered in four project vessels. The second lot will arrive in the next few months.
When will the port become fully operational? What are the plans ahead?
The port is being developed in four phases. We expect that upon the completion of the first phase of work, the port will be opened for trial operations in May 2024 and commissioned before the end of 2024.
Once operational, what are the opportunities for Vizhinjam Port in Indian maritime trade?
As nearly 75% of India's transshipment cargo is handled at foreign ports, the ‘Vizhinjam International Seaport Thiruvananthapuram’ will become the game-changer as it will enable domestic handling of transshipment cargo.
Being India’s first Mega Deep-Water Container Transshipment Port, Vizhinjam Seaport will revolutionise India’s maritime trade. The specialties that Vizhinjam had will propel the nation towards this goal without much delay.
Vizhinjam is the only transshipment hub in the Indian subcontinent which is strategically located closer to the East-West & Far East-Gulf route. The advantage of this specialty is that liners prefer minimum deviation from their courses when selecting a transshipment port. East–West trade route (Far-East to Europe and the US via Malacca Straits and Suez Canal) is relevant for India. Vizhinjam thus is a promising location given its position at 6-10 Nautical Miles deviation (0.2-1 hour) from the Suez route. With the coming of well-established hinterland connectivity, Vizhinjam Seaport will become the first-choice port in India.
Another specialty is Vizhinjam had a deep draft of 20 m depth. We must remember that most mainliners prefer calling at ports with at least an 18 m draft.
Another advantage is Vizhinjam’s state-of-the-art infrastructure including automation to handle megamax containerships.
All these, promise quick turnaround of vessels.
Once the port becomes operational, a robust maritime ecosystem that we witnessed in Colombo, Singapore, Port Kelang, and others will become a reality at Vizhinjam also. There will be the provision of package services/ancillary services like the supply of bunkers to ships at competitive rates, dry docking/ship repair, crew change services, ship chandelling, and others.
