These 6 Logistics issues solved when Vizhinjam Port fully operational

India has added a new chapter in maritime history. The first cargo ship San Fernando has docked at Kerala Vizhinjam Port. This event is a big step towards bringing it on the global transshipment map. Vizhinjam Port is important for India because it is a deep-water transshipment port located between the Suez Canal and the Strait of Malacca.

First of all, let us know what is a transshipment port?

A transshipment port is a port where goods are transferred from one ship to another. This type of port is required so that shipping cost and time can be reduced.

What are the 6 problems that will be solved when Vizhinjam Port becomes operational?

 (1) Dependence on transshipment will be reduced

• At present, India needed foreign ports like Colombo, Singapore, Dubai for international trade. But now with the Vizhinjam Port becoming operational in India, there will be time saving and an annual saving of Rs 1000 crore in extra charges. Vizhinjam Port is located very close to the International East-West Shipping Line. As a result, cargo ships will not have to cover unnecessary distance.

(2) There will be a huge reduction in logistics cost

• Logistics cost in India is 14% of the total GDP, which is 5% more than the US and European countries. The logistics cost of these countries is 7% to 8%. With the Vizhinjam Port becoming operational, cargo ships will not have to cover long distances, resulting in
  

  Vizhinjam sea port Kerala

  savings of fuel and time. Traders will get high quality logistics services at a lower cost.

 (3) Maritime trade will get a boost

• Vizhinjam Port is located at the southernmost point of India and is very close to the international sea route. Anyone can easily travel from there. The depth of Vizhinjam Port is 24 meters which is deeper than New York, Dubai, Singapore and Colombo. Due to which there is no littoral drift. The importance of Vizhinjam Port can be assessed from the fact that it has the capacity to handle the largest cargo ships Panamax and Post-Panamax vessels.

(4) Congestion at the port will be reduced

• With the functioning of Vizhinjam Port, the delay in shipping due to excessive load at the ports of Mumbai, Kolkata, Chennai will be reduced because large ships can be diverted by operating Vizhinjam Port. As a result, congestion at the ports of Chennai, Mumbai and Kolkata will be reduced and exports will be boosted due to reduced shipping time.

 (5) Make in India and export will get a boost

• The Make in India and Atmanirbhar Bharat scheme being run by the Government of India will get a boost because the operation of Vizhinjam Port will reduce logistics costs, resulting in increased foreign investment and Indian products can be connected to the international market. Considering the importance of this port, Adani Ports and SEZ Limited have invested Rs 8867 crore.

 (6) Employment will be boosted

• The operation of Vizhinjam Port will create 2000 direct and indirect jobs. By 2028-29, when all four phases of Vizhinjam Port are
  

  Kerala port ship

  completed, 5500 jobs will be created at a growth rate of 65%. As a result, unemployment figures will decrease and per capita income will increase.

(7) Capacity and future of Vizhinjam Port

• The capacity of Vizhinjam Port is 4.10 million TEUs per year. But India is still 11 times behind China in terms of transshipment port capacity. But Adani Ports and SEZ Limited plan to invest Rs 1 lakh crore by 2028 to further increase the capacity of Vizhinjam Port.

 Conclusion:

The operation of Vizhinjam Port will reduce India’s dependence on transshipment. This will result in saving of time and fuel. The Indian economy will also grow faster because earlier 14% of GDP which was spent on transshipment will now be spent only up to 6%. The Indian government will be able to spend the saved money on other welfare schemes.