Billionaire Gautam Adani is doubling his investment to $2.4 billion in Vizhinjam, the new mega port in southern India, in a bid to accelerate expansion and attract some of the world’s largest ships.
“We plan to invest $2.4 billion in the Vizhinjam international transshipment terminal by 2028,” Karan Adani, Managing Director at Adani Ports and Special Economic Zone Ltd., said during a press interaction at Kerala port.
The goal is to boost capacity five-fold to 5 million TEUs, far exceeding the initial plan of 3 million TEUs.
Adani revealed that the expansion deadline has been moved up to 2028 from the original 2045 target to capture a larger share of international maritime trade currently led by China.
Strategically located near the southern tip of India, Vizhinjam is adjacent to key international sea routes and boasts some of the deepest shipping channels, accommodating large vessels.
It was a Rs 10,000 crore or $1.2 billion investment earlier, but the revised plan doubles the amount to include ship-fueling facilities, a luxury cruise terminal, and a 2-million-ton cement grinding unit, as explained by Karan Adani.
The port recently welcomed its first mother ship, a container vessel operated by A.P. Moller-Maersk, and is in talks with other major container lines like MSC Mediterranean Shipping Co. and Hapag-Lloyd. While Hapag-Lloyd currently has no plans to include Vizhinjam in its network, a spokesperson mentioned the potential for future consideration.
The Vizhinjam transshipment port, inaugurated in October, represents the Adani Group’s ambition to position India on the global maritime map. Historically, the world’s largest container ships bypassed India due to inadequate harbor depths, opting for ports in Colombo, Dubai, and Singapore instead.
This new investment will also extend the existing berth and breakwater, enhancing the port’s capability to handle some of the biggest ships, given its proximity to international shipping routes that manage 30% of global cargo traffic.
With the Vizhinjam port, Adani Ports aims to capture transshipment traffic, significantly reducing India’s reliance on overseas ports for 75% of its transshipped cargo. The port is poised to streamline traffic between the US, Europe, Africa, and East Asia.
