"Vizhinjam Port Approved to Launch India's First Transshipment Operations"

The Adani Group's Vizhinjam Port has received approval from the shipping ministry to operate as India's first transshipment port, marking a significant milestone for the country's shipping and logistics sector. The recommendation to declare the port as a customs-notified transshipment hub was made earlier this week, according to sources familiar with the development.

This approval allows customs to establish a presence at Vizhinjam Port, enabling it to become India's first full-fledged deepwater transshipment port. A final nod from the Central Board of Indirect Taxes and Customs (CBIC) is expected within the next three months, paving the way for transshipment operations to commence. "This approval paves the way for customs to set up an office at Vizhinjam Port," a senior government official told Economic Times on condition of anonymity.

Transshipment ports act as transit hubs where cargo from one ship is transferred to another on its way to the final destination. The international transshipment project at Vizhinjam in Kerala, undertaken by Adani Ports and Special Economic Zone Ltd (APSEZ), began in December 2015. The initial plan aimed to complete the ₹7,700 crore deepwater seaport project by 2019, but delays have pushed the expected start of operations to this financial year.

Vizhinjam Port is designed to accommodate large-scale automation for rapid vessel turnaround and boasts state-of-the-art infrastructure to handle Megamax containerships—the largest currently in operation worldwide. The port's initial capacity is set at one million twenty-foot equivalent units (TEUs), with plans to increase to 6.2 million TEUs in subsequent phases.

The project is strategically positioned to attract a share of the more than a million containers of Indian cargo that are currently transshipped annually through foreign ports, such as those in Colombo, Sri Lanka. It is estimated that about 75% of India's transshipment cargo is handled at ports outside the country, with Colombo, Singapore, and Klang processing about 85% of it.

APSEZ's upcoming January-March 2024 financial results, scheduled for release on May 2, will likely shed more light on the company's global operations and future plans. The company handled 420 million metric tonnes of cargo globally in 2023-24, representing a 24% year-on-year increase. With the approval for transshipment operations at Vizhinjam Port, APSEZ is set to strengthen India's position in the global shipping and logistics landscape.

ET