TRIVANDRUM VIZHINJAM INTERNATIONAL DEEP WATER MULTIPURPOSE SEAPORT PROJECT; GATEWAY OF ASIA
Here is all what you need to know about the most strategic Vizhinjam Port that is very important for the development and growth of Kerala State and India as a nation.
1 Vizhinjam is an all-weather port located on the Southern tip of the sub-continent.
2 Vizhinjam Port is just 10-12 nautical miles from the busy Persian Gulf - Malacca shipping lanes which carry almost a one third of the world shipping traffic.
3 The proposed port is a Green-field project, within urban/city limits.
4 The port will be built in three phases, and when it is fully built, can handle 4 miilion teus (Twenty-foot Equivalent Units).
5 Trivandrum in 10 years will be like Singapore after the Vizhinjam port becomes fully operational.
5 Adani Group is constructing a national asset in Vizhinjam and their aim is to build a world class maritime infrastructure .
6 Within four years, the state (Kerala) would have a world class port facility.
7 Vizhinjam International Seaport is a proposed port by the Arabian Sea at Thiruvananthapuram in India.
8 Vizhinjam Natural sea Port which when completed in India will be only port that will have Mother Ships docking.
9 Vizhinjam will be the only port in India designed to accommodate the biggest ship that exists in the world.
10 Vizhinjam is billed to become India's first transhipment port.
11 This will be the second international trans-shipment terminal in the country. The first one in Kochi was inaugurated in 2010.
12 Vizhinjam will be a transshipment port equipped to handle multi-purpose and ‘break bulk’ cargo (goods that must be loaded individually) in future.
13 Development of the Vizhinjam Port will help Indian traders save cost by transshipping containers at lower costs.
14 The Vizhinjam International Container Transhipment Terminal would be developed as the hub of all ports in the country.
15 Adani has eight ports in the south western coasts of the country.
16 This ninth port would earn a place of distinction in the string of ports owned by the company, Adani.
17 Kerala was listed as one of the 10 paradises in the world by National Geographic.
18 The Adani Group has assured the state government that it will complete the first phase of the project in less than 1000 days.
19 Dredging works for the Rs 7525 crore project had started in the coastal waters off Mulloor, Vizhinjam.
20 The project cost for Vizhinjam port is Rs 5,552 crore.
21 Of this, Rs 4,089 crore is the PPP component and Rs 1,463 crore the worth of the work funded by the government.
22 The project would see private sector investment of Rs 2,800 crore besides Rs 800-crore VGF assistance from the Centre.
23 The project was first mooted 21 years ago.
24 The government will start receiving a share of the port's revenue after the 15th anniversary.
25 This share will start at 1 percent and increase by 1 percent until it reaches 40 percent.
26 The government will receive 10 per cent of revenue from non-ports operations from the seventh year.
27 As per the agreement signed between the state government and Adani Group, Phase I should be completed within four years.
28 The concession agreement of the port would allow Adani Ports to handle cargo for a period of 40 years ending till April 2056.
29 The port will not be paying royalty in the initial years.
30 From FY2034, the royalty will increase by one per cent of the gross income every year.
31 The capital expenditure of Rs 4,100 crore for the Vizhinjam Port is phased out over the next 4-5 years.
32 This will be funded by a combination of Rs 1,600 crore of grant, Rs 900 crore of equity and about Rs 1,700 crore of debt.
33 The funds will be used to set up a berth of 1.2 million TEUs annual capacity, and to construct common infrastructure (shore protection, basin, approach channel and evacuation gateway).
34 At the current financing structure and lower realisation (large share of transshipment volumes), the port may require to achieve 10Mn tonne of cargo to reach PAT (profits after tax) break-even.
35 Vizhinjam Port Capex will involve US$160 million of foreign debt, which the company aims to raise at a modest premium to the international rates in London market (LIBOR).
36 The project will have a capacity of 1Million TEU in the initial phase, which will be scaled up to 3Million TEU.
37 In shipping terms, ten million tonne of cargo is equivalent to about 8.5-9 lakh TEUs (twenty foot equivalent unit).
38 For Adani Ports, bulk cargo accounts for nearly 58 per cent of its consolidated traffic.
39 A significant share of its bulk cargo is coal imports.
40 Through Vizhinham, Adani Ports may also be looking to import coal from Australia to power projects in Tamil Nadu.
41 Apart from Adani, most of the other players are restricted to one terminal or one port. So that’s the advantage that they bring to the shipping lines apart from infrastructure and price.
42 The ports in Colombo, Dubai and Singapore have benefited hugely because India never had the infrastructure for a transhipment port.
43 The project would not only meet the transshipment needs of the country but also boost coastal shipping in the state.
44 Development of a cruise terminal will also contribute to the tourism sector.
45 With the availability of a strategic base in Indian Ocean, the project also assumes importance from a national security viewpoint.
46 The issue of rail connectivity will be taken up under the Sagarmala scheme of the Centre.
47 Envisaged to increase the capacity of the existing Vizhinjam fishing harbour at a cost of Rs 80 crore.
48 The improvement plan includes schemes for enhancement of deep sea fishing, creation of self-help groups and uplift of educational, health and other infrastructure facilities
49 Will attract huge international maritime traffic in the coming years.
50 Vizhinjam targets 3 million TEU of basket which Colombo port handle for India alone.
51 The DP World-controlled Vallarpadam Transshipment Terminal handled 3.68 lakh TEUs in 2014-15.
52 The eighth year since work on the project began in 2007 and fourth year since its commissioning in 2011.
VIZHINJAM PORT CONSULTANTS
53 The International Finance Corporation (IFC), a member of the World Bank Group is currently the transaction advisor to VISL.
54 Technical design and environmental and social study by Royal Haskoning.
55 Investment quality market study by Drewry Shipping Consultants.
56 International legal team of Allen & Overy (Singapore) and Trilegal (India).
57 Asian Consulting Engineers who undertook the Environmental Impact Assessment after being contracted to do so by the IFC.
58 Vizhinjam Port was part of Adani’s strategy to expand its share of container cargo.
ABOUT ADANI GROUP
59 Adani Group is an Indian multinational conglomerate company headquartered in Ahmedabad, Gujarat, India.
60 Total market capitalization of the Adani group is INR122,000 crore ($18.48Bn).
61 Adani Group was founded in 1988 and has interests in port construction, port management, retail, energy etc.
62 Its diversified businesses include resources, logistics, agribusiness and energy sectors.
63 Gautam Adani is the founder & chairman of Adani Group.
64 Adani currently operates the Mudra port in Gujarat, which is the biggest port under Adani Ports and Cess Ltd.
65 Adani had also won the right to manage Abbot Point port in Australia in 2011.
66 About 60 per cent of total coal import in India is managed by Adani Enterprises Ltd.
67 It also has a prominent role in energy production in India through Adani Power Ltd
COMPETITIVE ADVANTAGES OF VIZHINJAM PORT
68 Vizhinjam port to support india's economic growth.
69 Located on Southern tip of Indian Peninsula.
70 Only 10 nautical miles from the major international sea route and East-West shipping axis.
71 Natural water depth of more than 20 m within a nautical mile from coast.
72 Minimal capital dredging (1 million cubic metres in Phase I).
73 Least Littoral transport.
74 Negligible maintenance dredging.
75 Central to the eastern and western coast lines of India - can cater to the needs of both west and east coast.
76 Greenfield nature - flexibility in design & connectivity.
77 No significant environmental/ social issues.
78 Proximity to rail (10 Km), road (2 Km) network & airport (15km).
79 No tariff regulations.
80 Being Greenfield Project no legacy of excess personnel.etc.
81 Autonomy and freedom in operations to operate competitively.
82 No acquisition of land needed for the Port itself(land reclamation planned).
83 At State capital city, that has an International airport, the required human resources and well developed social infrastructure.
84 Scope for tourism infrastructure development in future due to proximity to Kovalam (Cruise Terminal, Marina)and Poovar.
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