Kerala CM flags-in first ever ship into Vizhinjam port

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Source: The post is based on the article Kerala CM flags-in first ever ship into Vizhinjam portpublished in “Indian Express” on 18th October 2023

What is the News?

Kerala Chief Minister has inaugurated the first-ever cargo ship at the under-construction Vizhinjam international seaport project.

Why does India need a Transshipment Port?

India has 13 major ports but lacks infrastructure for handling ultra-large container ships.

About 75% of India’s transshipment cargo is managed at foreign ports like Colombo, Singapore and Klang.

For instance, in fiscal year 2021-22, India’s total transshipment cargo was approximately 4.6 million TEUs.Of this, around 4.2 million TEUs were processed outside India.

What are the benefits of Transshipment Port?

Establishing a transshipment hub in India offers several advantages such as:

– Forex savings (saving foreign exchange)

– Attracting foreign direct investment (FDI)

– Creating job opportunities

– Encourages various associated businesses such as ship repair services, crew change facilities, logistics value-added services, Warehousing among others.

– Can attract a significant portion of the container transshipment traffic currently diverted to ports in Colombo, Singapore, and Dubai.

– Enhancing operational and logistics efficiency

What is Vizhinjam Port?

Vizhinjam Port is located near Thiruvananthapuram, Kerala.

It is India’s first international deepwater transshipment port.

Built by: Adani Ports and SEZ Private Limited on a design, build, finance, operate and transfer (DBFOT) model.

It is the first greenfield port project to receive viability gap funding from the government of India.

Key Features: 

Deep Natural Depth: The port boasts a natural depth of over 18 meters.This will help in accommodating large vessels and mother ships.

Cargo Handling: The port is designed to handle various types of cargo such as: Container transshipment Multi-purpose cargo and Break-bulk cargo.

Strategic Location: The port is located just ten nautical miles from the international shipping route.

Capacity: The port has the capability to accommodate substantial cargo volumes.

Advanced Features: The port offers large-scale automation for quick turnaround of vessels.

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