Vizhinjam Seaport (Thiruvananthapuram)

 Vizhinjam Seaport (Thiruvananthapuram), India’s first Deepwater Container Transshipment Port




 is an ambitious project of Kerala government.

  • The port is being currently developed in landlord model with a Public Private Partnership component on a Design, Build, Finance, Operate and Transfer (“DBFOT”) basis.
    • Under landlord model, port authority acts as regulatory body and as landlord, while port operations (especially cargo handling) are carried out by private companies (Adani Vizhinjam Port Pvt Ltd in this case).


Why in News?




India’s first deepwater transshipment port, the Vizhinjam international seaport , commissioning the ₹8,800 crore  , near Thiruvananthapuram, received its first mothership (a mothership refers to a large cargo vessel that acts as a central hub for the transshipment of goods.).


What asid Modi ? 

thousands of crores have been invested through public-private partnerships (PPP) over the past 10 years, to upgrade India’s ports to global standards and make them future-ready.


out that 75% of India’s transshipment operations were previously conducted at foreign ports, leading to significant revenue loss for the country. 


The Union Budget for the current financial year introduced a new policy to promote the construction of large ships in India


Mr. Modi said that two Indian ports are now ranked among the world’s top 30, while India has improved its position on the Logistics Performance Index and stands among the top 20 countries in global shipbuilding.

 

India is also setting up a shipbuilding and repair cluster in Kochi, the Prime Minister said. Once completed, this cluster will create numerous new employment opportunities, providing Kerala’s local talent and youth with a platform for growth, he said.


Manufacturer

it is developed by Adani Ports and Special Economic Zone Ltd, through a public-private partnership with the Kerala government


The MV San Fernando, carrying 2,000 containers, was given a grand welcome at the port. The berthing of the ship was part of a trial run at the port before it is slated to open for commercial operations.


What is Deepwater transshipment port?


  • Deepwater port
    • A deepwater port is a manmade structure that are used as ports or terminals to transport, store, or handle oil or natural gas.
    • These structures can be fixed or floating, and are located beyond state seaward boundaries.
    • They can include: Pipelines, Pumping stations, Service platforms, Mooring buoys.
  • Transshipment port
    • A transshipment port is a port where goods are offloaded and loaded onto a different ship to continue their journey to their final destination.


Why India needs a container transshipment port?



  • Lacks infrastructure to deal with ultra-large container ships
    • India has 13 major ports. However, the country lacks a landside mega-port and terminal infrastructure to deal with ultra-large container ships.
    • Hence, nearly 75 per cent of India’s transshipment cargo is handled at ports outside India, mainly Colombo, Singapore, and Klang.
    • In fiscal 2021-22, the total transshipment cargo of India was about 4.6 million TEUs (twenty-foot equivalent units), out of which about 4.2 million TEUs were handled outside India.
  • Othe benefits
    • Developing such ports will accrue significant benefits such as forex savings, foreign direct investment, increased economic activity at other Indian Ports.
    • It will also lead to the development of related logistics infrastructure, employment generation, improved operation/logistics efficiencies and increase in revenue share.
    • Several other allied businesses viz. ship chandlery-ship supplies, ship repair, crew change facility, logistics value-added services, warehousing and bunkering also come up at the transshipment port.
  • Increased economic activities
    • A deepwater container transshipment port can attract a large share of the container transshipment traffic.
  • Currently, this is being diverted to Colombo, Singapore and Dubai.
    • It can also ensure India’s economic development and open up immense job opportunities.


What is Vizhinjam International Seaport Project?\



  • Located in Vizhinjam (near Thiruvananthapuram), Kerala, this transshipment deepwater multipurpose seaport project is being built by Adani Ports and SEZ Private Limited.
  • It is being built on a design, build, finance, operate and transfer (DBFOT) model.
    • DBFOT model is a Public-Private Partnership (PPP) model. In this model, a private partner is responsible for:
  • Designing the project
  • Building the project
  • Financing the project
  • Operating the project during the contracted period
  • Transferring the project back to the public sector
    • The DBFOT model is usually used for large-scale infrastructure projects.
    • The private partner is granted a concession by the public sector to finance, design, construct, own, and operate the project for a period of 20 to 30 years.
    • After that period, the project is returned to the public entity that originally granted the concession.
  • According to the agreement, out of the total investment, Adani Group is supposed to invest Rs 2,454 crore and another Rs 1,635 crore will be mobilised from the state and central governments as viability gap funding.
  • The Kerala government has also gave 500 acres of land.
  • The DBFOT deal is for 40 years, with provisions extending for 20 years.


What are the features of the Vizhinjam port?





  • India’s first international deepwater transshipment port
    • This is India’s first international deepwater transshipment port with a natural depth of more than 18 meters, scalable up to 20 meters.
  • This depth is crucial to get large vessels and mother ships.
    • It is designed to cater to container transshipment, multi-purpose, and break-bulk cargo.
    • The cost of movement of containers to and from foreign destinations is likely to come down.
  • Strategic location
    • The port is located ten nautical miles from the international shipping route.
    • The port is expected to compete with Colombo, Singapore, and Dubai for winning trans-shipment traffic.
  • Increased capacity and minimum maintenance
    • Its capacity in the first phase is one million TEU, which can be increased to 6.2 million TEU.
    • Other features include minimal littoral drift along the coast and virtually no requirement for any maintenance dredging.
  • Economic benefits
    • The project is expected to generate 5,000 direct job opportunities, apart from giving a boost to an industrial corridor and cruise tourism.
    • Vizhinjam port offers large-scale automation for quick turnaround of vessels with state-of-the-art infrastructure to handle Megamax container ships.

Transshipment Hub

  • Transhipment hubs are ports that have connections to originating and destination ports and are used as intermediate port for cargo transfer. 

  • Nearly 75% of India’s Transshipment cargo is handled at ports outside India. 
    • The Ports of Colombo, Singapore, and Klang handle more than 85% of this cargo.

Significance of India as a Transshipment Hub


  • Address the potential revenue losses for Major ports ($200-220 Million) in transshipment handling and increase port activity.  

  • Savings of foreign exchange reserves and attracting foreign direct investment. 

  • Development of related logistics infrastructure and employment generation.

  • Growth of allied businesses such as ship repair, warehousing, bunkering etc. 

Other Initiatives taken to develop Transshipment hubs in India

  • Cochin Port Authority (CoPA) has developed International Container Transshipment Terminal in Cochin.
  • Galathea bay in Great Nicobar Island of Andaman & Nicobar Islands is identified for development of an International Container Transshipment Port.

    Comments

    Post a Comment

    Popular posts from this blog

    Image
      The Free Trade Agreement with New Zealand reflects India’s evolving trade diplomacy strategy India concluded a Free Trade Agreement (FTA) with New Zealand   DATE OF STATRT  in December 2025, at a time marked by fractured supply chains and rising protectionist tendencies among nations. Guided by the vision of “Viksit Bharat”,  India has recalibrated its foreign trade policy, transitioning from a cautious, tariff-focused negotiator to a strategic, high-velocity partner.  Viksit Bharat (Developed India) 2047 is the Government of India's comprehensive vision to transform the nation into a fully developed, self-reliant, and prosperous country by its 100th anniversary of independence in 2047 . It focuses on economic growth, sustainable infrastructure, social inclusion, and good governance, with an aim to achieve a USD 30–40 trillion economy. There are six key wins for India   in this FTA, as it aligns with the Viksit Bharat blueprint for trade policy based on ...
    Read more

    Karnataka govt. unveils digital grievance portal for gig workers

    Image
      In a first, Karnataka govt.  unveils digital grievance  portal for gig workers In this article -  Who are Gig workers  ? WHY IN NEWS -  Integrated Public Grievance Redressal System (IPGRS) portal Transparency -  WHAT THEY CAN DO ? gig workers can now officially Internal Dispute Resolution Committee (IDRC)  Challenges for Gig Workers How Is India Addressing the Challenges of the Gig Economy? Who are Gig workers  ?  Definition: The Code on Social Security, 2020,  defines a gig worker as a person who works outside a traditional employer-employee relationship.  Types : platform and non-platform-based workers. Platform workers  are those whose work is based on online apps or digital platforms. E.g., Ola, Uber, Zomato, Swiggy, Urban Company, etc. Non-platform gig workers  are generally casual wage workers and own account workers in the conventional sectors, working part-time or full time. Reasons for growth:  Demogra...
    Read more
    Image
      India’s first and deepest geothermal wells at Puga Valley in Ladakh Subject:  Policy and Science & Technology Why in the news? In a move towards the Clean India mission, the country’s  first and deepest two geothermal wells (1,000 m) at Puga Valley in Ladakh  were inaugurated by Lieutenant Governor VK Saxena on 17th July.  Executed by the   Oil and Natural Gas Corporation (ONGC) Energy Centre, this marks a major milestone towards PM’s vision of  Carbon-Neutral Ladakh  and towards setting up India’s first geothermal power project. Key takeaways: 1. The two geothermal wells are   critical for the successful implementation of the 1 MW pilot geothermal power project at Puga, which will be India’s first demonstration-scale geothermal power project.  These two wells at 1000-meter-deep are commissioned at the height of over 14,000 feet.  Created using AI 2.  National Policy on Geothermal Energy 2025 To utilize the thermal energy...
    Read more