Investment

Adani Group to Invest Rs 20,000 Crore in Vizhinjam Port’s Remaining Phases

• ByStartupStory     |    July 13, 2024

The Adani Group is set to invest an additional Rs 20,000 crore to complete the remaining three phases of the Vizhinjam International Seaport, India’s first transshipment port. This was announced by Karan Adani, Managing Director of Adani Ports and Special Economic Zone Ltd (APSEZ), during an official reception ceremony for ‘San Fernando’, the first mothership to dock at Vizhinjam.

Talking to PTI after the event, Karan Adani highlighted the transformative impact of the port on India’s manufacturing sector, emphasizing the significant reduction in logistics costs. “The port will be a game-changer for Indian manufacturers as it reduces logistics cost by 30 to 40%,” he said.

The ‘San Fernando’ docked on Thursday at the port, which is being developed by APSEZ, India’s largest port developer, under a public-private partnership model at a cost of around Rs 8,867 crore. Adani stated, “We are going to invest Rs 20,000 crore more from our balance sheet, and we can complete the remaining phases at one go.”

Adani further mentioned that the company’s primary focus is not on market share but on minimizing transit costs for cargo. “We are not really looking at market share but are keen on reducing the transit cost of cargo for manufacturers,” he explained.

Reflecting on the project’s journey, Adani acknowledged the initial challenges faced, particularly in sourcing the necessary stones for the breakwater construction. “Initially we faced the issue of getting the required number of stones for the breakwater construction. Now we have enough stones to complete our remaining phases, and the breakwater is almost done,” he said.

The Vizhinjam port, strategically located, is expected to play a pivotal role in India’s maritime sector. Adani remarked, “Vizhinjam port, with its prime location, will play a crucial role in India’s maritime sector as the first transshipment port in the country.”

The reception ceremony saw the participation of Kerala Chief Minister Pinarayi Vijayan, who formally welcomed the 300-metre-long ‘San Fernando’. The event was attended by Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal, Kerala Assembly Speaker A N Shamseer, several state ministers, UDF MLA M Vincent, and APSEZ Managing Director Karan Adani.

Addressing the gathering, Chief Minister Vijayan expressed optimism about the port’s future. He stated, “The Vizhinjam International Seaport Limited will become a full-fledged one by 2028, 17 years ahead of schedule.” He added that while the initial vision was to complete phases two, three, and four by 2045, the port would be fully equipped by 2028 with an investment of Rs 10,000 crore. “An agreement will be signed soon,” he assured.

Adani acknowledged the critical support received from the local community and political entities, which was instrumental in overcoming various hurdles. “After our public hearing, the locals supported us. All other political parties also gave us their support. Any project is not easy, not just in Kerala but in any part of the country. But now everyone supports us in this mission,” he concluded.

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