'Potential to compete with Singapore': How Adani Group's Vizhinjam Port is a maritime game changer for India

The berthing of the maiden vessel at Adani Port’s Vizhinjam transshipment terminal’s, the Zhen Hua 15, delivering cranes for the port’s development, marked a big milestone for the Adani Group as well as the country. The arrival of this vessel marks the project’s steady development, which is slated for commercial operations by next year. Strategically located on the southwestern coast, the Vizhinjam Port is set to transform the country’s port infrastructure by creating the capacity to handle ultra-large ships. Let’s understand the importance of Vizhinjam Port. 

Entry into the transshipment club 

Vizhinjam Port marks India’s entry into the transshipment club, which so far was missing despite rising trade with the world. A transshipment port serves as a crucial hub where cargo is transferred from one big ship to multiple smaller ones for unloading on the way. Currently, the major transshipment hubs are the ports of Singapore, Shanghai, Busan, and Jebel Ali near Dubai. In fact, the big exporter, China, has more than half-a-dozen transshipment ports. While announcing Adani Group’s plans to commence Phase II of this project, Karan Adani, CEO, Adani Ports said the port’s strategic location—just 10 nautical miles from the International Shipping Route connecting Europe, the Persian Gulf, and the Far East—is a huge advantage. In 2022–23, India’s exports reached $770.18 billion, with imports at $892.18 billion. The government, which has come out with production-linked incentives and other import substitution schemes, is targeting a total export of $2 trillion by 2029-30. “Vizhinjam will also be a global bunkering hub, supplying clean, green fuel like hydrogen and ammonia,” said Adani. 

Gearing up for the Megamax container ships  

Vizhinjam can handle giant megamax container ships. These ships are the largest container ships currently in operation, with a capacity of over 24,000 twenty-foot equivalent units (TEUs). These ships are used for long-haul international shipping routes as they bring economies of scale by saving costs and increasing efficiency in the shipping business. They cover multiple transshipment hubs on their route. The water depth in Vizhinjam varies from 23 to 27 metres, making it ideal for hosting such huge ships. No other Indian port, public or private, has the depth required to accommodate ultra-large cargo vessels, or ULCVs. 

Compete with regional rivals  

Vizhinjam is ideally located along the international shipping route from the Persian Gulf and the Arabian Sea to Southeast Asia. “Vizhinjam has the potential to compete with leading global ports like Colombo, Singapore, Port Klang, and Jebel Ali,” said Adani. Rating agency ICRA said in its report, “Vizhinjam port would primarily compete with international ports like Colombo in Sri Lanka as well as Salalah in Oman, Dubai, and Singapore for container transshipment.” It, however, said the competitive pricing and turnaround time will remain critical to attracting traffic. 

Large capacity under progress 

The capacity of Vizhinjam Port is expected to be 1 million TEUs initially. In subsequent phases, capacity is expected to be expanded by an additional 6.2 million TEUs, making it a significant player in the region for handling container cargo. For example, if you have 1 million containers, there is enough room to cover around 125 football fields.