Adani Ports will invest Rs 20,000 crore in Kerala’s Vizhinjam Transshipment Terminal by 2030, Managing Director and CEO Karan Adani said on the same day the upcoming transshipment terminal officially received its first vessel.

Kerala Chief Minister Pinarayi Vijayan officially received the Zhen Hua 15 cranes commissioned for the construction of the port and was joined by several dignitaries. A water salute from tugboats greeted the visiting ship. The port is expected to start operations in May-December next year, marking a milestone in the state’s infrastructural development journey.

Adani Vizhinjam Port Pvt. according to Rajesh Jha, managing director and managing director. Ltd., which is building the port, has already invested ₹7,700 crore in the first phase of the project, with the company investing ₹2,500-3,000 crore and the rest from the central and state governments, including financing the viability.

Vizhinjam is the only transshipment port in India with a natural depth of more than 18 meters, which is critical for attracting large ships. It is also only 10 nautical miles from an international shipping lane, closer than many domestic and international ports, allowing ships to dock more quickly without deviating far from their route. It is also strategically important. Vizhinjam has the potential to significantly reduce dependence on overseas transshipment hubs such as Sri Lanka’s Colombo port, which is supported by Chinese entities.

The Vizhinjam project is also important for the Adani Group. The 13 ports or terminals of Adani Ports and Special Economic Zone Ltd (APSEZ) can currently handle 580 million tonnes (mt) of cargo per annum. In the FY23, the port operator handled 339.2 million tonnes of goods. By 2030, APSEZ aims to become the world’s largest port operator and handle one billion tons of cargo. “Vizhinjam will accelerate the growth of APSEZ and achieve our vision,” Adani said.

“The size of ships on the international trade route is increasing. Over the next 10 years, the average ship size will be 12-15,000 TEU (20-foot equivalent units) instead of the current 6,000-8,000 TEU. Vizhinjam can handle a better draft of 20,000 TEU ,” Adani said. Adani Ports has free cash flows of ₹7,000-8,000 crore and invests ₹5,000-6,000 crore in capital every year, he said.