Adani to invest ₹20K cr in Vizhinjam port by ’30

livemint.com:

₹20,000 crore in Kerala’s Vizhinjam Transhipment Terminal by 2030, managing director and chief executive Karan Adani said on a day the upcoming transhipment terminal officially received its first ship. The Zhen Hua 15, carrying cranes ordered for the port construction, was formally received by Kerala chief minister Pinarayi Vijayan and joined by various dignitaries. A water salute from towing rigs welcomed the visiting vessel.

The port is scheduled to begin operations between May and December next year, marking a milestone in the state’s infrastructure development journey. According to Rajesh Jha, managing director and CEO of Adani Vizhinjam Port Pvt. Ltd, which is building the port, the project has already received ₹7,700 crore investment in phase one, with the company investing ₹2,500-3,000 crore and the rest coming from the state and central governments, including viability gap funding.

Vizhinjam is India’s only transhipment port with a natural depth of more than 18 metres, which is critical to attracting large vessels. It is also only 10 nautical miles off the international shipping route, closer than many domestic and international ports, allowing ships to dock quicker without deviating far from their route. It is also strategically significant.

Vizhinjam has the potential to significantly reduce reliance on foreign transhipment hubs such as Sri Lanka’s Colombo port, which is supported by Chinese entities. The Vizhinjam project is crucial to the Adani group as well. The 13 ports or terminals run by Adani Ports and Special Economic Zone Ltd (APSEZ) currently have the capacity to handle 580 million tonnes (mt) of cargo a year.