Billionaire Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ) is reportedly planning to ramp up its investment to Rs 10,000 crore or $1.2 billion to boost its transshipment container port in southern India. Adani is eyeing bringing in some of the world’s largest ships to the port.
According to a report in Bloomberg, this investment, first-of-its-kind in Vizhinjam port in Kerala, is part of the second phase of the project, expected to finish by 2028. It is wooing the biggest container lines such as MSC Mediterranean Shipping Co, AP Moller - Maersk A/S, and Hapag-Lloyd to call in at the port.
Meanwhile, Shares of Adani Ports edged lower on Thursday. The stock settled at Rs 1,484.55 on BSE, down 0.19 per cent. The Adani group stock has climbed 41.65 per cent year-to-date and 105.02 per cent in the past one year.
The port welcomed ‘San Fernando’, Maersk’s vessel, with over 2,000 containers. The ship was welcomed with the traditional water salute, after which she was berthed successfully.
“Historic Day as Vizhinjam welcomes its 1st container vessel! This milestone marks India's entry into global transshipment and ushers in a new era in India's maritime logistics, positioning Vizhinjam as a key player in global trade routes. Jai Hind!” said Adani on social media.
The funds for Vizhinjam port that was inaugurated in October last year, will be used to increase the length of the existing berth and extend the breakwater at the port. Breakwater is a rock barrier that is built to protect the harbour from the force of waves.
The Vizhinjam terminal would have bunkering facilities to fuel ships and plans to buy additional cranes to boost capacity, besides it cruise terminal that can accommodate large luxury lines.
India is aiming for a bigger piece of the international maritime trade, which is currently dominated by countries like China. Big containers do not dock here, because its harbours aren’t deep enough to handle the vessels, and prefer ports such as Colombo, Dubai and Singapore.