• Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal received the first mothership ‘MV San Fernando’ marking the beginning of operation at India’s first deep water container transhipment port in Vizhinjam, Kerala.

• Kerala Chief Minister Pinarayi Vijayan formally welcomed the mothership in a ceremony held at the port.

• This marks India’s entry into the global transshipment and ushering in a new era in India’s maritime history, positioning Vizhinjam as a critical player in the international trade routes.

• The mothership had docked at the port being developed by Adani Ports and Special Economic Zone Ltd, (APSEZ), part of the Adani Group, in a public-private partnership model.

Vizhinjam International Seaport

• Vizhinjam Port is a strategic maritime project near Thiruvananthapuram in Kerala. 

• This is the first greenfield port project in India, initiated by a state government with an investment exceeding Rs 18,000 crore. 

• Developed under public-private partnership (PPP) mode, it stands as one of the largest initiatives in the country’s port sector. 

• Vizhinjam’s strategic location near international shipping routes significantly reduces transit times for vessels, making it a pivotal point for maritime trade.

• The port has a natural draft of 18-20 meters, which means that some of the largest container vessels in the world will be able to dock here. 

• The development of the Vizhinjam International Seaport is poised to boost Kerala’s economic growth by creating jobs, enhancing trade, and attracting investments. 

• Ongoing infrastructure projects aim to equip the port with state-of-the-art facilities, including modern container terminals, warehouses, and logistics parks. 

• Vizhinjam is set to become a key player in regional trade, potentially serving as a gateway for commerce between Southeast Asia, the Middle East, and Africa.

Why India needs deepwater container transshipment port?

• India has 12 major ports but lacks a landside mega-port and terminal infrastructure for ultra-large container ships.

• As a result, nearly 75 per cent of India’s transshipment cargo is handled at ports outside India, primarily in Colombo, Singapore, and Klang.

• In fiscal 2021-22, India’s total transshipment cargo was approximately 4.6 million twenty-foot equivalent units (TEUs),, with about 4.2 million TEUs handled outside the country.

Developing a port into a transshipment hub offers several benefits:

• Forex savings

• Foreign direct investment

• Increased economic activity at other Indian ports

• Development of related logistics infrastructure

• Employment generation

• Improved operational/logistics efficiencies

• Increase in revenue share.

• It also stimulates related businesses, including ship services, logistics, and bunkering.

• A deepwater container transshipment port can attract a significant share of the container transshipment traffic currently diverted to Colombo, Singapore, and Dubai.

(The author is a trainer for Civil Services aspirants.)