Can Vizhinjam port change the future of India's global trade?
A port in Vizhinjam was one of former Kerala CM Oommen Chandy's dreams. Multiple governments attempted to construct a port in the PPP mode but failed. IFC, which was roped in to prepare a report, pointed out that the project would not be viable on a standalone basis without substantial government funding of 85% of the cost.
Even though the project was financially unviable, both CPI(M)-led and Congress-led political formations were intent on developing the port. They both knew it had the potential to change the economic landscape of Kerala. Planning Commission's help was sought.
Deputy chairman Montek Singh Ahluwalia deputed his adviser Gajendra Haldea for the the job. In the next few months, Haldea spearheaded the project with the support of chief secretary E K Bharat Bhushan and shipping secretary James Varghese. After several abortive bids, the Adani Group came forward with a bid. Chandy and his cabinet accepted the single bid.
In the world of shipping, location is key. No port exemplifies this better than Vizhinjam, India's first deep-water container trans-shipment hub. It is only 10 nautical miles away from the east-west international route, close to two of the world's busiest shipping lanes — the Straits of Hormuz and Malacca — and has a natural draft of 20 m, sufficient to accommodate ultra-large container ships and mega crude carriers.
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