Recently inaugurated Vizhinjam International Seaport (VIS) in Kerala, harbors not just massive motherships but also high hopes and expectations. Poised to have the potential to change the face of south India, VIS is India’s first international deepwater trans-shipment port. With a natural water depth of 20m, it is set to be the deepest port in India. Located just 10 nautical miles away from the international shipping route connecting Europe, the Persian Gulf and the far east, makes the port very accessible to the motherships carrying cargo in this route. Further, its proximity to the Trivandrum international airport along with its road connectivity via NH66 makes the port even more enticing. The port was built on a PPP (Private- Public Partnership) model with Adani group.VIS is set to be functional from December next year.
As you read this, about 75 percent of India’s shipment cargo is handled by ports abroad because of the lack of a mega port and the terminal infrastructure to deal with very large container ships or motherships. Most of the cargo destined for India, hence goes off to places like Colombo, Singapore or Dubai, from where it is then imported to India via smaller vessels. This creates the added cost of cargo transportation. With the advent of VIS, all such cargo can be directly imported to India. Additionally, due to its unique features like depth and minimal littoral drift, VIS could substantially reduce maintenance costs, which facilitates a lower port tariff compared to other competing ports. This could help attract a substantial proportion of the annual container traffic in the Indian Ocean.
Such an influx of cargo could potentially change the landscape of Kerala as well. The state is notoriously famous for the amount of revenue it gains from alcohol and lotteries. Opening up of new opportunities in export-import oriented business like cargo handling, warehouse management , logistics park etc could prompt Kerala to move away from its consumerist overbearing to an economy more centered around industrial activities. The inauguration of the port has also resulted in an almost instantaneous increase of land prices. It is obvious that increased job and business opportunities resulting from VIS are going to attract a large number of people as well, leading to an increase in population density. Such an increase, if not handled properly can lead to overcrowding and housing issues.
The cumulation of the above said factors opens up the possibility of Thiruvananthapuram (where VIS is located) growing as one of world’s major cities. As transportation links together the factors of production, it is apparent that most of the world’s important cities are port cities. Hence, if the state manages to support the infrastructure-intense development surrounding VIS with assets like management, skilled, unskilled labor and efficient information systems, then the possibilities are truly limitless.
If all goes well, India stands to benefit from increased forex savings, foreign direct investment, increase in revenue, employment generation and increased economic activity. VIS can prove to be a game changer for India’s ocean economy.
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