NEW DELHI: India on Friday registered its presence on the global maritime map with the inauguration of its first deepwater multipurpose seaport at Vizhinjam in the southern Indian state of Kerala.
Prime Minister Narendra Modi commissioned the Vizhinjam port, built at a cost of $1.04 billion under a public-private partnership with business conglomerate the Adani Group and the Kerala government holding the majority stake.
Late last year, the port began limited operations and received MSC Turkiye — one of the world’s largest cargo ships with a capacity of more than 24,000 containers — making it the first port in India to handle a vessel of that size.
The port is to be built in four phases by 2028 at a total cost of 180 billion Indian rupees ($2.11 billion). In full-page advertisements in several national and local dailies a day before the inauguration, the Adani Group — considered close to Modi — said the port is only 10 nautical miles from global shipping routes and will have an annual capacity of up to 5 million TEUs (20ft equivalent units).
TEU is a unit of measurement used to quantify the capacity of container ships and terminals. It represents the volume of a standard 20-foot shipping container and is a common way to express the cargo-carrying capacity of vessels and facilities.
“The existing capacity of this transshipment hub will triple in the coming time,” Modi said in his inaugural address.
“So far 75 per cent of the Indian transshipment used to take place outside the country. This used to cause huge revenue loss to the country.
“Now this situation is going to change.
“Now the money of this country will be utilized for the service of the nation. The money which used to go outside will now bring new economic opportunities for the people of Kerala and Vizhinjam.”
India has 13 major ports and 217 non-major ports, but none of them are deepwater multipurpose transshipment ports, which include terminals where cargo containers are shifted from one vessel to another before reaching their final destination. With India until now lacking infrastructure to handle large vessels, close to 75 percent of its transshipment cargo went through external ports like Colombo, Singapore and Jebel Ali, UAE.
Industry bodies see a big opportunity with the opening of the Vizhinjam port.
“It’s a mother port. One of the kinds in the country. It is a fully automated port, and the port can handle any ship, the biggest in the world. It is hardly 10 nautical miles from the international sea route. It’s very conveniently set. It’s a God-given gift to the country,” S.N. Raghuchandran Nair, president of the Trivandrum Chamber of Commerce and Industry, told Arab News.
“Cargos originating from this place will cut down the time by almost two weeks, it is also going to save $600 to $1,000 per container in view of the handling charges and various things. This is going to be a big saver. You will save 2,000 to 3,000 crore rupees ($2.5 million to $3.5 million) by way of foreign exchange every year once this port opens fully.”
The Vizhinjam port has been controversial from the beginning and faced protests from fishermen and environmentalists over displacement and harm to coastal and marine life.
Kerala journalist K.A. Shaji made a documentary, “Stolen Shorelines,” highlighting the displacement of fishermen and environmental damage.
He questions the need for the port.
“Actually, there is a big port in Colombo and international movements of freight are through Singapore, Dubai and Colombo, there is no need for the big vessels to come to Vizhinjam, which is in a corner of Kerala and it has to take a deviation from the main route,” Shaji told Arab News.
“I feel in the highly competitive world of international freight movement Vizhinjam can do very little, but environmental and socio-economic costs are very high.”
He said thousands of families have been affected by the port, directly and indirectly.
“Directly more than 450 fishermen’s families have been impacted and indirectly over 4,500 families have been impacted as coastal erosion and change of the direction of the waves by the impact of the project destroyed most of the houses and livelihood.”
