Adani Group’s Vizhinjam Port in Kerala Has received approval from the Government to operate as the inaugural transshipment port of India. This designation is important as it allows cargo to be transferred from larger ships to smaller ships, contributing to India’s goal of becoming a manufacturing hub. At present, a large portion of India’s transshipment cargo is handled by foreign ports such as Colombo and Singapore.
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Government approval for transshipment operations
- The ministry has approved Adani’s Vizhinjam Port to function as a transshipment hub, marking a milestone for India’s maritime sector.
- This approval is necessary to facilitate the establishment, smooth operation of customs facilities at the port.
Background and project overview
- Adani Ports and Special Economic Zone Limited (APSEZ) The Vizhinjam Transshipment Project was started in 2015, planned to be completed by 2019. However, it is now expected to commence operations within the current financial year.
- The port aims to capture a significant share of India’s transshipment market, which is currently dominated by foreign ports such as Colombo, Sri Lanka.
Infrastructure and capacity
- Vizhinjam Port boasts of advanced automation and infrastructure capable of accommodating the largest ships from around the world, megamax containerships.
- Its initial phase is designed to handle one million TEUs, with provision for expansion to 6.2 million TEUs in later phases.
Financial Performance and Future Outlook
- APSEZ is set to announce its financial results for January-March 2024 on May 2, following a successful financial year 2023-24 with cargo handling increasing by 24% year-on-year, leading to a global total 420 million metric tons.
