Adani Group Commits Rs 20,000 Crore to Complete Vizhinjam Port: Boost for India’s First Transshipment Hub

The Adani Group is set to invest an additional Rs 20,000 crore to finish the remaining phases of the Vizhinjam International Seaport, India’s first transshipment port. Karan Adani, Managing Director of Adani Ports and Special Economic Zone Ltd (APSEZ), announced this on Friday during an event for the docking of the first mothership, ‘San Fernando,’ at the port.

Benefits to Indian Manufacturers

Adani highlighted that the Vizhinjam port will significantly benefit Indian manufacturers by reducing logistics costs by 30-40%. The mothership arrived on Thursday at the port, which is being developed by APSEZ at a cost of around Rs 8,867 crore through a public-private partnership.

Focus on Reducing Transit Costs

“We are planning to invest another Rs 20,000 crore from our funds to complete the remaining phases quickly,” Adani told PTI. He emphasized that the focus is on lowering transit costs for manufacturers rather than capturing market share.

Overcoming Challenges

Adani acknowledged the challenges faced during the project but credited the support from the local community, government, and political parties for the successful completion of the first phase. “The locals supported us after our public hearing, and all political parties backed us. Any project faces difficulties, not just in Kerala but across the country. But now, we have widespread support,” he said.

Resolving Initial Issues

One of the initial issues was obtaining enough stones for breakwater construction. “Now, we have sufficient stones to complete the remaining phases, and the breakwater is nearly finished,” Adani added. He noted that Vizhinjam port, with its strategic location, will be crucial for India’s maritime sector as the country’s first transshipment port.

Official Reception Ceremony

Earlier, Kerala Chief Minister Pinarayi Vijayan officially welcomed the 300-meter-long ‘San Fernando’ at a ceremony at the port, attended by Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal, Kerala Assembly Speaker A N Shamseer, several state ministers, UDF MLA M Vincent, and Karan Adani.

Ahead of Schedule

Addressing the gathered crowd, the Chief Minister stated that the Vizhinjam International Seaport Limited (VISL) would be fully operational by 2028, far ahead of the initial schedule. Originally, phases two, three, and four were planned to be completed by 2045. However, with an investment of Rs 10,000 crore and an upcoming agreement, the port will be fully equipped by 2028.