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Maritime Hub
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Context
The Vizhinjam International Deepwater Multipurpose Seaport, India’s first dedicated transshipment port, developed under a PPP model between Adani Ports and the Kerala government, has become operational in July 2024. It represents a significant shift in India’s maritime trade capabilities by aiming to reduce dependency on foreign transshipment hubs.
Strategic and Economic Significance
- Reduction of Foreign Dependency: India currently transships around 75% of its cargo through ports like Colombo and Singapore, incurring annual revenue losses of $200–220 million. Vizhinjam aims to internalise these logistics.
- Geographical and Structural Advantages: With a natural draft of ~20 meters and location close to the east-west international shipping route, ultra-large container vessels can dock without deviation, lowering costs.
- Technological Modernisation: It is India’s first semi-automated port, equipped with AI-powered traffic management and remote-controlled quay cranes, reducing vessel turnaround time.
Development Timeline and Financial Framework
- Public-Private Investment Model: Phase 1 funding included Rs 5,595 crore (Kerala govt), Rs 2,454 crore (Adani Ports), and Rs 818 crore (Viability Gap Funding from Centre).
- Project Delays and Challenges: Initiated in 2015, progress was delayed by fisherfolk protests, Church opposition, natural disasters, and the COVID-19 pandemic.
- Early Operational Indicators: By early 2025, the port had received 265 vessels, including mother ships, indicating strong early operational potential.
Connectivity and Future Roadmap
- Hinterland Connectivity Imperatives: Efficient integration with road and rail networks is crucial for seamless cargo distribution to South India’s industrial zones.
- Planned Expansion Phases: Future phases (till 2028) will involve an additional investment of Rs 9,500 crore, aiming to develop allied logistics and warehousing.
- Transformational Potential: If implemented effectively, Vizhinjam can emerge as South Asia’s major transshipment hub, complementing India’s Sagarmala vision.
Practice Question
Q. The commissioning of Vizhinjam Port is seen as a turning point in India’s maritime logistics. Critically evaluate its potential in transforming India’s transshipment landscape, considering economic benefits, geopolitical implications, and infrastructural challenges.More Articles
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