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Vizhinjam Port to lessen time and costs by 40% for Indian manufacturers
Industry News- Jul 16,24
The port, equipped with advanced facilities, including automated operations and modern infrastructure, aims to efficiently handle large ships.
Karan Adani, CEO, Adani Ports and SEZ (APSEZ) announced that the Vizhinjam port will significantly reduce logistics costs and transit times for Indian manufacturers by up to 40%. This announcement follows the arrival of the first mother ship at the port, marking India's entry into global transshipment. The port, equipped with advanced facilities, including automated operations and modern infrastructure, aims to efficiently handle large ships. Supported by a public-private partnership, the port is expected to boost trade connectivity, managing a substantial portion of India's transshipment traffic previously handled outside the country.
"I think with this port we are able to reduce the transit time for our customers that are the manufacturers of the country by almost 30 to 40%. This is a big benefit for Indian manufacturers, making them more competitive on a global scale. Additionally, the reduction in transit time will certainly lead to a decrease in logistics costs," said Karan Adani.
He anticipates a 4-5% reduction in logistics costs through this port.
The arrival of the first mother ship at Vizhinjam port marks a significant milestone, positioning Vizhinjam as a critical player in international trade routes and ushering in a new era in India's maritime history.
"Once we receive environmental clearance approval, we aim to complete the remaining phases of development, including an additional 1.2 kilometres of berth length," said Adani. "We are confident in filling the port's full capacity due to the positive traction and excitement from our customers."
The port's full master plan capacity is projected to be 5 million TEUs.
Addressing the challenges faced during the port's development, Adani acknowledged that challenges are inherent in greenfield sites but emphasised a commitment to working with local communities and employing local youth. "We aim to achieve 100% local employment for the port's operation," he said, noting the technological advancement of the port not only for India but for South Asia as a whole.
The Group has invested nearly Rs 650 million in CSR initiatives so far.
When asked about the support from the Kerala government and other political entities, Adani highlighted the unique bipartisan support for the port's development. "We have received support from all political parties, whether it is BJP, Congress, or Left," he said, noting that the port project received backing from different political administrations.
The milestone event was inaugurated by Kerala Chief Minister Pinarayi Vijayan, with the gathering presided over by VN Vasavan, Kerala's Minister for Ports. Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, was the chief guest.
Kerala Chief Minister Pinarayi Vijayan remarked, "India has now entered the global map with this transshipment port. This is a monumental day for Kerala, celebrating the arrival of the mother ship San Fernando at Vizhinjam International Seaport. With an investment of Rs 88.67 billion and the creation of over 5,000 jobs, this project exemplifies the power of public-private partnership."
The Vizhinjam International Seaport features state-of-the-art infrastructure capable of handling large ships, with modern container handling equipment and advanced automation and IT systems. The San Fernando, a 300-meter-long container vessel operated by Maersk with a capacity of 8,000-9,000 TEUs, will utilise the port's services to offload about 2,000 containers and manage 400 container movements within the vessel.
Currently, 25% of India's container traffic is transshipped en route to its destination. Despite India's growing global trade, the country lacked a dedicated transshipment port, resulting in 75% of its transshipped cargo being handled by foreign ports. Vizhinjam aims to facilitate the movement of transshipment traffic into India and play a pivotal role in handling traffic along major international trade routes.
The Vizhinjam International Seaport is promoted by the Government of Kerala through a Public-Private Partnership (PPP) mode. It represents the largest private sector investment in Kerala. After winning the bid, Adani Ports and Logistics formed a Special Purpose Vehicle (SPV), Adani Vizhinjam Port Private Limited (AVPPL), to develop the project. Overcoming multiple challenges, the port is now in the advanced stages of completion.
APSEZ operates 15 ports across India, representing 27% of the country's total port volumes. The company is also developing a transshipment port in Colombo, Sri Lanka, operates the Haifa Port in Israel, and manages a container terminal in Dar es Salaam Port, Tanzania.
(Source: ET)
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