You might remember the time when Hindenburg accused the Adani Group of stock price manipulation. The financial world held its breath, and it seemed like chaos had taken over. But guess what? The tables have turned!

India inaugurated its first Container Trans-shipment Port in Trivandrum Kerala, on October 15.

The Vizhinjam port is at the southernmost tip of India and will help us compete with China in international maritime trade. 

The first phase of this massive project, costing around ₹7,600 crore, began in 2015 and is expected to be finished by May 2024. When it’s done, the port can handle 75% of India’s container trans-shipment needs.

What does Trans-shipment Port Mean?

Trans-shipment is when goods have to be offloaded at an intermediate port and loaded onto a different ship to make their onward journey to their final destination.

The port where it is offloaded to take the connecting vessel is called the trans-shipment port.

So, what’s special about this port, and why only in Vizhinjam?

Well, it’s India’s way to join the global trans-shipment club, which so far it has missed out on despite increasing trade with the world. 

Right now, major trans-shipment hubs are the ports of Singapore, Shanghai, Busan, and Jebel Ali (near Dubai), which are leading the way. But once the Vizhinjam Port is fully ready, it can compete with these big players. 

Vizhinjam Port sits in a strategic spot between the Suez Canal and the Strait of Malacca, and will put India on the map of global sea trade.

It’s just 10 nautical miles from the busy international shipping route connecting Europe, the Persian Gulf, and the Far East. This location gives India a great advantage.

Plus, it has a natural channel that goes 24 meters deep, making it a perfect hub for some of the world’s largest ships.

Until now, big container ships have been avoiding India because its ports weren’t deep enough to handle such vessels and docking at neighbouring ports.

But Vizhinjam’s location changes that. It can now welcome these ultra-large container and cargo vessels, boosting container and cargo traffic for India and the efforts to make India the “world’s factory”.

Will this be a big win for India?

This is a big change for India! In 2020, India’s container traffic was just 17 million TEUs, while China handled 245 million. India’s poor shipping connections held it back from joining the global market.

But things are now changing!

Lower logistics and shipping costs, along with more cargo and container capacity, are beneficial for Indian manufacturers. Plus, the port will support India’s plan to become a major manufacturing hub in the future.

Once it’s completely done, Indian exporters won’t need to go to Dubai or Singapore for cargo trans-shipments, saving an expected Rs. 1000 crore in expenditure.

India’s current container traffic is currently less than 10% of China’s, but if the Vizhinjam port attracts more ships, it’ll give India and Adani Ports a stronger position in global maritime trade. It’s a win for India and Adani Ports!

Written By Shivani Singh

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