Global Cargo Traffic to Turn Toward India Making It the World’s Factory
Gautam Adani’s new mega project is the first transshipment port in India, located at Vizhinjam. The port was inaugurated on October 15 in collaboration with Special Economic Zone Ltd. and the local government. The port will bring India to the forefront as a global manufacturer and supplier and can potentially grab a larger market share.
The new port has substantial capacity to draw global cargo traffic towards India, cutting out a significant share from China. China has been dominating international maritime trade; however, a share of it will be grabbed by India, with better and cheaper logistics making it a manufacturing hub.
Chakri Lokapriya, chief investment officer at TCG Asset Management Co. in Mumbai, said, “The Indian Ocean is 50 percent of sea trade,”. “The Vizhinjam port with its natural advantages will improve operating margins for Adani Ports.”
The mega project is a transshipment port that will facilitate a more time-saving and cost-effective way to transfer the consignment from one ship to another (i.e., from the original ship to a mother ship). The port at the Vizhinjam has a natural ability and a perfect depth to drift large containers and cargo ships. The combination of nature and modern equipment will enable a more extensive maritime trade and consequently make India a trade destination.
“The upcoming ports at Vizhinjam (Kerala) and Vadhavan (Maharashtra) have natural drafts in excess of 18 meters that would enable ultra large container and cargo vessels to call on the ports thereby boosting the efforts to make India the world’s factory” by improving the container and cargo traffic, the ministry said in the statement.
According to a report on the website of the Adani Port, the Viazhinjam port will cost around Rs 7,700 crore and will have a capacity to include a Megamax vessel and facilitate easy movement as it will be as big as 1 million twenty-foot units (TEU) in the initial phase and the later phase will add around 6.2 million TEU’s.
“The Vizhinjam port with its natural advantages will improve operating margins for Adani Ports.”
The government is aiming toward Maritime India Vision 2030 for developing India’s ports into a world-class transshipment hub with an investment of Rs 1.25 trillion. Therefore, India will include in the vital trade routes preferably located between the Suez Canal and the Malacca Strait, as the Indian Ocean is a connecting route.
India has less than 10% cargo traffic than China; however, the Adani Ports can bring about meaningful change in the trade movement along the sea. The Modi government had announced in a parliament session that India’s shipping connectivity will soon change and integrate with the global value chain.
Adani‘s mega port project is another achievement added to his ventures and another step for India’s growth. The newly inaugurated port of Vizhinjam is estimated to commence in the next 5-6 months. Adani’s contributions majorly count to the growth of the nation. The port is a transshipment port, a time and cost-effective way to transfer the shipment. It is a deep seaport developed with Special Economic Zone Ltd. and the local government. Adani Ports is one of India’s most significant private sectors, holding about 30% of the market share, and is keen on developing and expanding globally as it is building the Hafia port of Israel.
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