Kerala, India – A momentous occasion is on the horizon as the heavy load cargo vessel Zhen Hua 15 prepares to dock at the Vizhinjam International Seaport in Kerala. This event heralds the inauguration of Adani Ports’ colossal infrastructure project, boasting an investment of 77 billion Indian rupees ($925 million). It also solidifies India’s position on the global stage for accommodating the largest container ships.
The Vizhinjam transshipment container port, India’s first of its kind, is a testament to the effectiveness of the public-private partnership model. This ambitious project has received financial support from the local state government in conjunction with Adani Ports, a key player in India’s integrated ports and logistics sector, forming part of the extensive conglomerate led by billionaire Gautam Adani.
The deep-sea water port, in its initial phase, will possess a capacity of 1 million 20 foot-equivalent units (TEUs), with plans to increase this capacity by an additional 6.2 million TEUs.
The strategic significance of this endeavor cannot be overstated. The Vizhinjam port, situated along the international shipping route connecting Europe, the Arabian Gulf, and the Far East, is set to elevate India as a prominent global transshipment hub. Transshipment, the unloading of cargo from one vessel and loading onto another, larger vessel on the route to the cargo’s final destination, will be a defining feature of this state-of-the-art facility.
In the year 2020, India’s port container throughput amounted to 17 million TEUs, a significant contrast to China’s impressive 245 million TEUs in the same timeframe, as reported by India’s Ministry of Ports, Shipping, and Waterways in February.
The initiative to establish ports with natural drafts exceeding 18 meters at locations such as Vizhinjam in Kerala and Vadhavan in Maharashtra is an endeavor to facilitate ultra-large container and cargo vessels, thus reinforcing India’s position as a global manufacturing powerhouse.
To fulfill the vision of developing world-class mega ports, transshipment hubs, and modernizing port infrastructure, India’s Maritime India Vision 2030 allocates an estimated investment of 1.25 trillion rupees, as outlined by the Ministry.
This significant milestone is a testament to the resilience of the Ahmedabad-based Adani Group conglomerate. In the face of allegations of stock manipulation and offshore tax haven misuse raised by US short-seller Hindenburg Research in January, the Adani Group has remained steadfast in refuting these claims. Despite the misinformation, Adani Group’s financial standing remains intact, as stated last month.
Chairing the Adani Group is Gautam Adani, a prominent figure in India’s business landscape, overseeing a diversified portfolio that includes ports, airports, electricity generation, and real estate.
The International Monetary Fund’s (IMF) recent assessment of India’s economic growth maintains that it is robust, propelled by significant public capital expenditure and robust domestic demand. The IMF anticipates India’s economy to expand by 6.3 percent this year and the next. Structural reforms will be instrumental in realizing India’s immense economic potential, as underscored by Krishna Srinivasa, Director of the IMF’s Asia and Pacific Department.
Enhancing the business environment, labor reforms, and trade restriction removal are key components in establishing an investor-friendly atmosphere, indispensable for India’s growth.