Prime Minister Narendra Modi on Friday inaugurated the second phase of Adani Group’s Vizhinjam transshipment port in Kerala, marking a major leap in India’s port capacity and maritime infrastructure.
The port, which commenced partial operations in July 2023 and has already handled around 250 container ships, is poised for a significant capacity boost. Backed by an additional Rs 95 billion investment, the expansion will triple Vizhinjam’s handling capacity, transforming it into a major global transshipment hub, reported Bloomberg, citing sources familiar to the matter.
Once all phases are completed, the Vizhinjam port will have an annual handling capacity of up to 5 million TEUs (twenty-foot equivalent units), with total investments expected to reach Rs 180 billion. Operated by Adani Ports & Special Economic Zone Ltd., the deepwater terminal is located just 10 nautical miles from key international shipping routes and features natural depths of up to 20 meters—ideal for accommodating the world’s largest container vessels.
Previously bypassed by major global shipping lines in favor of ports in Colombo, Dubai, and Singapore, India is now positioning Vizhinjam as a competitive alternative, aiming to reduce foreign transshipment dependency and reclaim lost trade volumes.
Afaq Hussain, director at the Bureau of Research on Industry and Economic Fundamentals, emphasised the strategic importance of the expansion. He said, “Given India’s growing trade volumes, the port’s capacity boost will be critical in minimizing supply chain risks and improving logistics efficiency for both imports and exports.”
Currently, about 75% of India’s transshipped cargo is handled overseas, costing Indian ports an estimated $220 million annually in lost revenue. Businesses also incur an added cost of $80 to $100 per container due to this dependence.
With its upgraded capacity, Vizhinjam is expected to serve major global shipping routes connecting the U.S., Europe, Africa, and East Asia. The port was recently included in the Jade service route operated by Geneva-based Mediterranean Shipping Co., linking it with China, South Korea, Singapore, Spain, and Italy.
Looking ahead, full-scale operations at Vizhinjam are projected to begin by 2028–29. The expanded facility is expected to become a vital node in Adani’s growing national port network and could shift the balance of regional shipping away from foreign-controlled hubs, reinforcing India’s presence in global maritime trade.
(With inputs from Bloomberg)
The port, which commenced partial operations in July 2023 and has already handled around 250 container ships, is poised for a significant capacity boost. Backed by an additional Rs 95 billion investment, the expansion will triple Vizhinjam’s handling capacity, transforming it into a major global transshipment hub, reported Bloomberg, citing sources familiar to the matter.
Once all phases are completed, the Vizhinjam port will have an annual handling capacity of up to 5 million TEUs (twenty-foot equivalent units), with total investments expected to reach Rs 180 billion. Operated by Adani Ports & Special Economic Zone Ltd., the deepwater terminal is located just 10 nautical miles from key international shipping routes and features natural depths of up to 20 meters—ideal for accommodating the world’s largest container vessels.
Previously bypassed by major global shipping lines in favor of ports in Colombo, Dubai, and Singapore, India is now positioning Vizhinjam as a competitive alternative, aiming to reduce foreign transshipment dependency and reclaim lost trade volumes.
Afaq Hussain, director at the Bureau of Research on Industry and Economic Fundamentals, emphasised the strategic importance of the expansion. He said, “Given India’s growing trade volumes, the port’s capacity boost will be critical in minimizing supply chain risks and improving logistics efficiency for both imports and exports.”
Currently, about 75% of India’s transshipped cargo is handled overseas, costing Indian ports an estimated $220 million annually in lost revenue. Businesses also incur an added cost of $80 to $100 per container due to this dependence.
With its upgraded capacity, Vizhinjam is expected to serve major global shipping routes connecting the U.S., Europe, Africa, and East Asia. The port was recently included in the Jade service route operated by Geneva-based Mediterranean Shipping Co., linking it with China, South Korea, Singapore, Spain, and Italy.
Looking ahead, full-scale operations at Vizhinjam are projected to begin by 2028–29. The expanded facility is expected to become a vital node in Adani’s growing national port network and could shift the balance of regional shipping away from foreign-controlled hubs, reinforcing India’s presence in global maritime trade.
(With inputs from Bloomberg)
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