A. Harikumar
When the Gujarat based Adani Ports and Special Economic Zones ltd (APSEZ), India’s biggest private port operator began construction of the Vizhinjam deep sea international container transshipment port by the end of 2015, the expectations were sky-high. As the group entered into an agreement with the Kerala government the promise was to complete the first phase of the port in 1000 days from the day of signing.
It was claimed that Vizhinjam will rival major transshipment ports in South Asia and the Middle East like Colombo and Dubai’s Jebel Ali. However even after repeated extension of deadlines, Vizhinjam port’s first phase is yet to be completed.
Meanwhile On Sep 30, 2021, Adani Group signed a build-operate-transfer (BOT) with John Keells Holdings and Sri Lanka Ports Authority to jointly develop Colombo West International Container Terminal. Like Vizhinjam, As per the 35 year long BOT, Adani group will hold 51 per cent stake. It is reported that 70 percent of the transhipment business at the Colombo port is linked to India and Colombo is the first choice for Indian shippers and carriers. Now, with Vizhinjam’s rival port Colombo also in its kitty doubts are being raised which port will get the priority in development? Will it be Colombo or Vizhinjam?
The capacity of Colombo port at present is seven million TEUs annually and is one of the 25 busiest ports in the world. The dredged depth of the port is 15 metres. Vizhinjam deep sea water port, the only transshipment hub in the Indian subcontinent, closest to the international shipping routes has a Natural draft of 20-24 m & minimal littoral drift. But, the proposed container handling capacity of the Vizhinjam port after the completion of the first phase is just one million TEU and after the full expansion three million TEU according to media reports, which is no comparison to Colombo Port. So the initial claims of Vizhinjam as a major container transshipment port is clearly exaggerated.
According to Kerala media, as per the pact with Kerala, Adani group had to complete the work by 2019 December; an extension of three months was also allowed in case it couldn’t complete the work as per schedule. But, if the group fails, then they will have to pay a fine at the rate of Rs 12 lakh per day.
Media had quoted Adani group officials saying the shortage of construction aggregates, esp rock, was hampering works. But Kerala government says it has provided solutions to all the issues raised by the Adani group. The Adani group has been quoted by the media saying the first phase will be completed by the end 2023.
Former CM Oommen Chandy
Commenting on the delay in the completion of Vizhinjam port and the railway line planned to link the port with the Indian railways network former chief minister Oommen Chandy said the fact that the project was granted rescheduled deadlines several times, but is yet to be completed speaks volumes on the lackadaisical attitude and inefficiency of the present LDF government. Mr. Chandy added that it is pathetic that the state government could not even start land acquisition for building a 10.7 km rail network.
Though the Adani group was contacted by vikasmudra on the reasons of the delay in construction, they didn’t respond.