VIZHINJAM PORT AS A TRANSSHIPMENT HUB

A Seminar Report
Submitted by
AMAL BABU
(Reg. No. 20819018)
In partial fulfilment for the award of

B. TECH DEGREE
IN
MARINE ENGINEERING

KUNJALI MARAKKAR SCHOOL OF MARINE ENGINEERING

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY

COCHIN – 682 022
JULY 2023
 KUNJALI MARAKKAR SCHOOL OF MARINE ENGINEERING
COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
COCHIN – 682 022

CERTIFICATE

This is to certify that the seminar report entitled “VIZHINJAM PORT AS A TRANSSHIPMENT HUB”
submitted by the engineering cadet AMAL BABU of Kunjali Marakkar School of Marine Engineering
towards the partial fulfilment of the requirements for the award of B.Tech degree course in Marine
Engineering of Cochin University of Science and Technology is a bonafide record of this seminar talk
presented by him in July 2023.

SEMINAR COORDINATOR COURSE- IN- CHARGE

OFFICE SEAL

ii
 ACKNOWLEDGEMENT
The satisfaction and euphoria that accompanies the successful completion of any task would be unjust
without a profound acknowledgement of people whose constant guidance and encouragement made it
possible for me to complete the seminar report.
First and foremost, I thank the Lord Almighty for providing the grace, strength and hope to carry out
and complete the seminar report.
I record my sincere thanks to Director Prof. R Venugopal for providing necessary facilities.
I wish to extend my gratitude to Course-In-Charge Mr. Jis George and the Course Coordinator Dr.
Akhil S Karun for the whole direction and guidance.
I also express my gratitude to Associate Professor Mr. Rajesh Kumar M and Assistant Professor Mr.
Vishnu S Kumar, the seminar coordinators, who has guided as well as helped me from the apex of my
seminar.
I am grateful to all other faculty members, non-teaching staff of the department and the Librarian.
Without their help I could not have completed my seminar.
I gratefully acknowledge and express my thanks to my parents who have been instrumental for the
success of this seminar.

AMAL BABU

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

CERTIFICATE ii

ACKOWLEDGEMENT iii

TABLE OF CONTENTS iv

LIST OF FIGURES v

LIST OF TABLES vi

ABBREVIATIONS vii

ABSTRACT viii

1 INTRODUCTION 1

2 PORTS AS CORNERSTONE OF ECONOMIC GROWTH 3

3 THE ASIAN PORT NETWORK 9

4 PORT DEVELOPMENT 13

5 FUTURE OF VIZHINJAM PORT 21

6 CONCLUSIONS 23

REFERENCES 24

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 LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.
2.1 Current port traffic 6
2.2 Increase in throughput at Non-major ports 8
3.1 Geographical Position of Vizhinjam Port 9
4.1 Ship-to-Shore Handling Facility 19

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 LIST OF TABLES
TABLE NO. TITLE PAGE NO.
4.1 Vessel-wise capacity 15
4.2 Berth-wise capacity 16
4.3 Container terminal equipment 20

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 ABBREVIATIONS
Sl no. Word Meaning
1 TEU Twenty Equivalent Foot
2 SNA Social Network Analysis
3 ISC Indian Subcontinent
4 UNCTAD United Nations Conference on Trade and Development
5 NMDP National Maritime Development Programme
6 JNPT Jawaharlal Nehru Port Trust
7 SEZ Special Economic Zone
8 CFS Container Freight Station
9 ICD Inland Container Depots
10 APSEZ Adani ports and Special economic zone limited
11 VISL Vizhinjam International Seaport Limited
12 AECOM Architecture,Engineering,Construction,Operations and
Management
13 ICTT International Container Transhipment Terminal
14 RMQC Rail Mounted Quay Cranes
15 RTGC Rubber Tired Gantry Cranes

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 ABSTRACT
Vizhinjam International Seaport is a proposed deep water Multipurpose Greenfield Port project
by the Government of Kerala. About 60% of the Indian Sub ContinentTransshipment cargoes
are handled by ports outside Indian Sub Continent by feeder vessels of 6000TEU. Colombo
being the largest transshipment hub for ISC region handles about 35% of the total ISC
transshipment traffic,4% being handled by ports other than Colombo in the ISC region and the
rest 61% traffic of ISC is handled by hub ports outside ISC like Jebel Ali in Dubai,Salalah in
Oman and Singapore. With the lack of deep draft ports and the cargo being handled at
transhipment ports outside ISC region, cost of Importing and Exporting from India is relatively
higher than in other developed countries.Vizhinjam having a natural depth of 18.4m that equals
to world class International ports is located 10-20 nautical miles away from the International
East West Shipping route.Vizhinjam port has the potential to capture the transshipment cargo
from Colombo and outside of ISC regions like Jebel Ali,Salalah,and Singapore with the
advantages of handling biggest container vessels(upto 18000TEU)and by attracting mainline
vessels to call directly instead transshipment from outside the country.This dissertation will be
focussed on the market analysis and the port development requirments of Vizhinjam project
while forecasting it to be an Emerging Transhipment hub port to the Indian peninsular region.

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ix
 CHAPTER 1

Introduction

Vizhinjam International Seaport is a proposed deep water Multipurpose Greenfield Port project
by the Government of Kerala.Kerala,the southern state on the west coast of India has a 585km
coastline and one major port at Cochin and 17 non major ports.The proposed Vizhinjam port
is located in the state of Kerala,at 16km south of the capital city Thiruvanathapuram which has
close proximity that is only 10-20 nautical miles away from the International East West
Shipping route.The natural depth of the Vizhinjam port is more than any competing Indian port
and more or equal to the world class International ports.Majority of the containers destined or
generated from India are transshipped or double handled from competing International ports
like Colombo in Srilanka,Salalah in Oman and Singapore.Vizhinjam port would be primarily
competing with these International ports for container transshipment and would be competing
with Cochin and Tuticorin for its gateway container cargo.The present trend of larger container
vessels like 18000 TEU Tripple-E Class vessels of Maersk which none of the existing Indian
ports can service can be directly called to Vizhinjam port because of its natural depth of
18.4m.With the realisation of Vizhinjam port India‟s ability to handle gateway and
transshipment cargo can be enhanced and a strong supply chain network can be established.
Vizhinjam port has the potential to capture the transshipment cargo from Colombo and outside
of ISC regions like Jebel Ali,Salalah,and Singapore with the advantages of handling biggest
container vessels(upto 18000TEU)and by attracting mainline vessels to call directly instead
transshipment from outside the country thereby saving the overall import –export costs of the
Indian consumers leading to the enhancement of trade in the country.

Trade and economy complement each other. The transportation revolution as discussed by Lee,
Song and Ducruet highlighted the contribution of containerization and intermodalism to
economic changes in the past (2008). Rich dividends earned from investments on port
infrastructure by nations like Singapore, Belgium in the past and China, Vietnam, Malaysia,
Indonesia recently supplement this argument. Ports, in an increasingly competitive global
market, have become the catalyst of promoting economic. With a long coastline, close
proximity to the the trade routes presents an abundance of opportunities for the Indian sub-
continent, which has so far failed to capitalize it well as compared to some of its counterparts
like China and Srilanka. With economic relevance of ports increasing, ports by functioning as
nodal point attract logistical (like in case of Singapore) and industrial (like east coast China,

1
Vietnam, Thailand) activities creating a large number of jobs (Dwarkish&Salim, 2015). But a
ports’ significance in the shipping network is dependent on various micro and macro economic
factors. This dissertation examines the network structure of the Asian, Middle-Eastern and
East-African (Indian ocean region) port network with respect to the Vizhinjam port in the
Indian Subcontinent. The Vizhinjam International Seaport is located at the southern tip of
Kerala, India. This analysis aims to assess the viability of the multimillion-dollar project in the
current logistical ecosystem. We therefore aim to focus on investigating liner trade routes using
vessels schedules to assess the project feasibility from a network perspective in conjunction
traditional port efficiency and hinterland perspective which would be further discussed in the
following section. The study would thus compare the connectivity of all the competitive ports
by analysing centrality measure and evaluating the current performance standard, of ports and
local logistic system, and policies to evaluate the system holistically.

With the feasibility of a port depending on both sea-side and land-side factors, the dissertation
aims to dwell into the sea-side factors like liner network structure, port systems and port
centrality. Research on the network structure, which still remains scarce is the cornerstone of
this project. To understand the shipping network, we would investigate the connectivity of the
case ports from the perspective of social network analysis(SNA), a branch of sociology which
studies collection of individuals and the linkages among them. The linkages in our research
would be the connection between various ports via container liner routes. For modelling
networks, SNA uses graph theory, algebra and statistics (Wasserman & Faust, 1999). Hence
we would develop a network model on graph theory and analyse various features of this
network using algebra and statistics procured from the port of calls schedule of liner under the
new alliances. By relating various actors (in this case, ports) into networks we can define
competition, their complementarity and more importantly analyse the network structure and its
behaviour. Under this perspective, the elemental factor that determine the success of a port
would be its strategic location in the network. The dependencies among the ports can be
measured with structural variables like centrality measures, which hypothesize that port do not
function independently but rather influence each other. The computation for the same would
be done using the software called - Gephi, a network analysis software which has been
previously used for mapping networks in social context like Facebook and Twitter.

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 Chapter 2

PORTS AS CORNERSTONE OF ECONOMIC GROWTH

2.1 Ports

Port studies have been predominantly centred around geographic papers. Pioneers like Rimmer,
Hayuth, Taaffe et al envisaged port evolution models based on growth and development of
corridors which had a deeply amalgamated geographical ideology. The early studies on ports
were specific to geographic importance but as shipping evolved, the focus also moved to an
array of topics which were based on surveys and discussions, based on an area of choice to
specific interconnected issues like economics, port city relations and ports as gateways apart
from the traditional approaches on port growth and importance. The emergences of the ‘Asian
tigers’ saw a shift to research on Asian ports. The rise of competition has led to a more applied
and interdisciplinary approach to research. The feasibility assessment of mega-containers ship
by Cullinane and Khanna (1999) has fostered a paradigm shift witnessed by the rise of
transhipment hubs. Containerization has significantly changed port operation models and
competition amongst seaports (Cullinane& Song, 2006). A port’s management solely based on
terminal infrastructure does not attract clients, and port operators have to make major decision
on hinterland development to reduce overall transport and logistic costs to ensure sustained
growth (Notteboom&Winkelmans, 2010; Oliver & Slack, 2006). From a port development
perspective also, strong international connections and analysis of both sea and land based
factors is essential to ensure feasibility of a port development project.

2.2 Evolution of Container Ports

Port operators today need to compare their port with distant ports on various key performance
indicators to identify best practices for the purpose of learning and implementing efficient
practises. The 1990s saw the emergence of transhipment hubs, which have been well
documented. A lot of research have been performed on the 9 evolution of megaports in an era
of mega –containerships. Ports have become a key component of the logistical chain and
therefore their operation and development are directly affected by economic variables.The
recent trend of asymmetrical growth of ports and cities has further declined growth rates of
ports as scope for expansions is reduced. The advent of intermodalism and megaships largely
affected the economics of international trade, with hub port rendering smaller ports redundant

3
with cargo being moved to hub ports via inland transport corridors or feeder systems to large
ports accessible by large ships to capitalizing on the economies of scale.

Container ports today can be divided into three categories: hub port, trunk port and feeder port,
and the main criterion needed to be called a hub port is not throughput cargo rate but
transhipment cargo rate. A more subjective definition in terms of ship-to-ship transfer, the hub
port is conceived as a pure transhipment port with the sole purpose of transfer goods from one
ship to another. Under this perspective, the elemental function of the port is to reduce cargo
handling time during ship transfer and all other logistical infrastructure like warehousing,
packaging et al are vital but secondary or less important. This transfer efficiency is based on
three intra-port aspects which are: berth handling, yard storage and intra-terminal transport and
the overlapping network of the port to ensure efficient transhipment. So in a perfect
transhipment hub, mother and feeder ship should be capable of docking fairly close to each
other to minimize cargo handling time. Paradoxically, however, the type of development that
has taken place in some ports has led to the opposite results: terminals have been built at
considerable distance from one another because of the lack of available space and increased
application of hub and spoke system by liner companies. The growing 10 share of containerized
cargo tonnage is a strong indicator of the need of increased integration of Indian ports, as ports
are internationally considered the centre of multimodal transport. The preposition of this study
is in line with the extensive research of Nam & Song (2011), which proposes that, “hub ports
(in particular, container ports) should be examined with not only their container throughputs in
terms of Twenty-Foot Equivalent Units (TEU) but also their connections with shipping lines
in the inter- and intra-region.” So the viability study of Vizhinjam port would have to focus on
these qualitative and quantitative factors.

2.4 Correlation of port and economy

Ports are more than a sea-land interface, it’s a function, a set of activities that provides impetus
for four types of industries. Firstly, the port-specific industries like stevedoring, port services
(like bunkering). Secondly, port-related activities that include firms involving in shipping
activities like import-export firms, provision or store suppliers and lastly port-induced activities
like manufacturing industry and other industry that aid maritime trade like banks, legal firms,
brokers and commodities trading firms (Yochum& Agarwal,1988, 1987). Ports also help
directly or indirectly generate employment. Good example is the Port of Hamburg. The port of
Hamburg more than 150,000 jobs in the Hamburg and Hanseatic city region supporting more

4
than quarter of a million people and generating a gross domestic product of 12.6 Billion euros
in 2010.

2.5 Development of Indian port system

With a coastline extending over 7,500km (Kumar et al, 2006), the Indian peninsula lies
strategically close to two major shipping routes, namely, east-west route and the Suez Canal
route. Being one of the fastest developing economies in the world, the need for India to enter
the global shipping industry has been long awaited. Historically, Asia especially India and
China were a major part of the silk route. Amongst the largest exporters of spices and linen,
they were the cornerstone of Eurasian trade. The British colonial influence on the country
manifested in development of port cities like Mumbai, Chennai and Kolkata, which moved
good from the western, southern and eastern hinterland respectively to be shipped to England
(Kosambi& Brush, 1988). But a depleted fleet and almost decimated shipbuilding industry as
result of colonial rules, saw India struggle to recover in the post-independence era (Kumar,
2012). The cargo flow though, through Indians ports have increased steadily in the last half of
the century. Mumbai, Kolkata, Chennai, Mormugoa, Kochi and Vizag all being older than
century, handle a significant low amount of cargo compared to other global ports. There is also
a significant difference in throughput of ports on each coast as can be seen below, owing to
historical growth and geographic position to both hinterland and foreland like Europe 14
(Behera,2016). India today has 12 major ports and more than 150 non-major ports, just
morthan20 of those can handle containerized cargo.

2.6 Current performance of Indian Ports

15 of the top 20 container ports in the world are in Asia, mostly China with exception of
Singapore, Dubai and Malaysian ports (UNCTAD, 2016). The figure 5 highlights the current
TEU handling capacity of the world’s top 10 ports as adapted from UNCTAD compared to
Indian ports as reported in the annual report from ministry of shipping, Government of India
(2016). India doesn’t have any major ports neither in terms of container handling nor with the
overall tonnage capacity in the world’s top 20 list.

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 Fig 2.1 Current port traffic

Shipping is an important indicator of both commodity and services of country. With cargo
handling capacity of India ports currently more than 19 million TEUs, India is taking a lot of
efforts to improve the infrastructure and efficiency at the ports, trying to bring it at par with
some of the other ports around the world (Behera, 2016). India currently operates via 12 major
ports spread across the east-west coast with several non-major ports being modernized and
developed under the Sagarmala Programme and the national maritime development
programme (NMDP 2010-2020). JNPT, Chennai (Major) and Mundra (Non-Major) currently
handle 75% of the container traffic in lieu of developed SEZs in the hinterland, but other ports
are improving capacity as India aims to boost trade (Ministry of shipping, 2016). Currently
India like most Asian countries has a heterogenic mix of port regionalization, where some ports
systems showcase interconnection and concentration (phase 5-6) with high traffic density while
others are scattered ports (phase 1-2) with cross hinterland captured but low traffic owing to

6
political issues as seen according to the works of Rodrigue&Notteboom (2010). 18 As per the
report by Drewry Shipping Consultants, there are as many as 247 listed CFS's and ICD's in
India. Most of these are located closer to the ports. This demonstrates the dependency on port
based facilities as the primary point for containerisation and clearing cargo. Inland penetration
of containers is a major issue. The presence of several bottlenecks as result of bureaucracy and
irregular development of intermodal transport system (road and rail) leads to longer container
turnaround and lack of last mile connectivity, which stall the growth of ports and shipping.
Vessel handling capacity owing to draft restrictions also affect Indian shipper’s chances of
ripping the benefit of economy of scales and the lack of transhipment ports in India adds a cost
penalty (World Bank, 2013). Apart from developing deep draft ports, there is a need to address
the following issues to help improve overall logistical performance of ports:

1. Hub and feeder operation along both coasts

2. Connectivity between inland depot and container freight stations

3. Intermodal connectivity at ports

4. Inland connectivity within ports on both coast

5. Development of special economic zones to enhance ports operation as a value adding node
in the global market.

Given the recent changes in cabotage laws provides Vizhinjam port with a large market and
ample opportunity to build on the hub-feeder system. Adani logistics Ltd at Mundra has shown
efficiency levels at par with global standards. Adani ports and Special economic zone limited
(APSEZ) also has joint ventures with major shipping lines at Mundra, this puts Vizhinjam port
in a suitable position to explore the opportunities in the current global market.

2.7 Indian Infrastructure policy

Ports are infrastructural undertakings usually requiring heavy investment. As mentioned before, they
have an economic multiplier effect on their surrounding regions and are the centre of many socio-
economic activities ranging from leisure bases to industrial and energy supply bases (Alderton,1999).
As an important part of a nation’s transport infrastructure, ports must be part of the national transport
plan. Historically, ports in India have not been under much focus but have come into emphasis recently
as a result of numerous reports of logistical fallacies and public infrastructural shortcomings. Studies
by the World Bank (2013) and major shipping companies (Like Maersk, 2016) have highlighted the
inadequacies of the system. The effects of performance of ports adding to the increased cost for

7
exporters and importers has become far too obvious lately (Ghosh & Be, 2015). But ports aren’t the
only one to be 19 blamed, other factors like lack of integrated transport network, obsolete facilities,
poor work practices have stalled growth of Indian ports. With import and export of merchandise steadily
growing, there is a need to upgrade the overall national transport infrastructure (World Bank, 2013).
Since 1996, private participation in public infrastructure has been encouraged by the Government of
India (hereafter GoI), on a build, operate and transfer basis (Lakshmanan, 2008). Major companies like
Maersk, CMA-CGM, Adani group have invested in ports and terminals, but implementation remains
sluggish owing to the risk and heavy bureaucratic challenges. But the increasing in cargo handling in
privately managed and joint venture project at non-major ports, as highlighted below, shows thegrowing
advantage of PPP projects.

Fig 2.2: Increase in throughput at Non-major ports

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 Chapter 3

THE ASIAN PORT NETWORK

3.1 Vizhinjam international seaport limited Project

The Vizhinjam International Seaport Limited (VISL) is the special purpose government
company, developing the deep water greenfield port at Vizhinjam. Adani ports and special
economic zone limited (Hereafter, APSEZ) is developing the port under Design, Build,
Finance, Operate and Transfer (DBFOT) model scheduled to be completed in 3 phases first of
which is to be completed by December 2019. AECOM, India was in charge of the planning of
the port project. The Final master plan was submitted in 2014 and no further changes or revised
reports have been published, so the remainder of the research on the feasibility of this project
would be based on the plans and productivity estimated according to the Integrated Port Master
Plan Report.

The proposed project is a greenfield project aimed to develop Vizhinjam International

Deepwater Multipurpose Seaport. First of it’s kind, the port with its deepwater draft of 20m
would be capable of handling the largest fleet of vessel currently operating in the world. The
project must also be noted is based on the projections of the Drewry report of 2010 submitted
to AECOM (AECOM, 2014).

Fig 3.1: Geographical Position of Vizhinjam Port

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3.2 Civil engineering features

The first phase of port is envisaged over 33 hectares. The port is designed to accommodate 2
berths with a quay length of 800 meters with an estimated port capacity of 900,000 TEUs. The
plans are based on the model vessel of 12,500+ TEU capacity. The port has a natural draft of
18m which would allow for vessels with capacity exceeding 18,000+ TEUs to berth as 22 well.
The port would also have a cruise berth for leisure and a liquid berth to allow for bunkering
operations. The container yard in phase 1 would have 5,600 TEU ground slot for storage with
utility route designed taking into consideration, expansion and port upgradation options. The
following phases of expansion would aim to increase port capacity to 3,350,000 TEUs with
quay length of 2000m and 5 berths and TEU ground slots of 18,200 by 2044.

3.3 Adani Ports and Special Economic Zones Limited (APSEZ)

The largest port operator in India, the Adanigroups subsidiary, APSEZ is currently operating
ports and terminals in 10 locations, across the western and eastern seaboard (Adani Ports,
2017). With a pan-India presence and investments on international port management projects
in Australia and Malaysia, APSEZ has been increasing their participation in the port sector.
The growth in throughout of Mundra port is a testament to their performance as a port manager.
The Adani group also the largest private container train link operator. This also provides
APSEZ an added advantage of the possibility of developing intra-port intermodal connections.
The 2013 report by world shipping council on trade estimated more than 28.3m TEUs being
traded between Asia and Europe via the East-west trade route. This includes an area covering
East-Asia, Asia, middle-east, Mediterranean and Europe. Based on the model vessel capacity
at any given time, there would be about 2,270 vessel traversing on east west routes. This
account 99 services between Europe and far-east Asia, based on Drewry 2013 container
forecast (AECOM, 2014). This highlights the vast opportunity the strategic location present,
but various other factors affect the ports ability to capture the market involving all the users

3.4 Benchmarking and Analysis

The Asian port network have risen to prominence in the world trade as a result of growing trade
in the form of merchandize trade from production rich south and south-east Asian countries
like China, Vietnam, Taiwan, Indonesia, Bangladesh, Thailand along with India. The boom in

10
trade and economy has lead to development of terminals and transhipment ports moving cargo
to Europe and the Americas. The unavoidable importance of the maritime route can be
attributed to the following factors:

• High density of maritime Traffic along the route

• Increase traffic of Newpanamax and ultra large container vessels (ULCV)

• High Population density providing market place

• Developing economies along the route providing cheap services including transhipment and
manufacturing as a result of GSC

• Presence of multiple choke point

For the purpose of the study, we shall consider the major transhipment terminals along the
east-west route as highlighted in the previous table. Ports on the east of Singapore are ignored
for the simplicity purpose as almost all vessel on the east-west route call at Singapore or port
of Klang before calling at one of the south Asian or Middle-east ports. The strategic location
of Vizhinjam Port close to the international maritime trade route along with its deep draft put
it in direct competition with some of the port in south Asia.

Some of the other deep draft port in the South Asian region are mentioned below.

• Port of Colombo

Largest and busiest port in south Asia currently, the port of Colombo currently has three
container terminals Jaya container terminal, South Asia Gateway Terminal and Unity
Container Terminal. Present at the immediate vicinity of Vizhinjam, Colombo Ports could be
directly affected by Vizhinjam ports’ operation.

• Jebel Ali Port, Dubai

The busiest port in the middle east is strategically located to cater to the transhipment needs of
the Persian Gulf region. It makes the port an important nodal point in the system. 26

• Port of Salalah Oman

One of the major ports located closest to the suez canal route, it becomes at imminenet point
at the heart of the pacific rim providing opportunity to serve the middle-eastern, Indian and
east african regions.

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• JNPT - APM Gateway terminal Mumbai

The largest and busiest port in India, it serves for transit and transhipment of the western region
of Asian and the Indian sub-continent.

•Mundra

Port The port in Gujarat, is also operated by the Adani ports (APSEZ). It registered the fastest
growth rate in 2016 and its set to overtake Mumbai as the largest container port in India with
the improved capacity to handle 5.5 million TEUs.

• Kochi Port

Also situated in Kerala, the Vallarpadam and ICTT are domestic competitor of Vizhinjam and
serve the same hinterland.

• PSA Singapore

The largest collective port facility in the world, PSA operates TanjongPagar, Keppel, Brani
and PasirPanjang and Sembawang Wharves with 69 berths out of which 10 berths at
PasirPanjang are capable of handles the largest container vessels.

• Port of Klang

Located at one of the busiest shipping lanes, Port of Klang which comprises of the north and
the west port, is strategically located in the Malacca strait. A combined 29 berths and 16.6
million TEUs capacity makes Port of Klang a major transshipment hub.

• Jeddah Port

Situated on the Red Sea, Jeddah like Port of Klang and Singapore is situated within 60 nautical
miles from the Asia-Europe route. The Saudi port along with Damman and Jubail serve the
middle-eastern and north African hinterland.

12
 Chapter Four

PORT DEVELOPMENT

4.1.Site Conditions & Ships that can be called at port

Vizhinjam is located almost at the tip of the southern peninsula on the west coast of
India,approximately 10 nautical miles from the international shipping route.Proximity to the
international Shipping route can attract container transhipment traffic .Southern railway
connects Vizhinjam to Mumbai in the north and Southern part of Tamil nadu.Road connectivity
to Vizhinjam is such that NH47(National Highway) is 8km away that connects Kanyakumari
in the south to Mumbai in the north. Kovalam beach located about 2km from Vizhinjam is an
important tourist destination.The proposed area for the Vizhinjam project is hilly and steep.

4.2 Climate

Vizhinjam has a tropical humid climate with hot summers and the region has two seasonal
monsoons:

• The North-East monsoon between October to December

The South-West monsoon from June to September

4.3 Temperature

The mean maximum daily temperature varies from 29°C and 32°C. March, April and May are
considered to be the hottest months of the year with temperature rising up to 33° Celsius. Mean
minimum daily temperature varies between 24°C to 30°C, with the lowest occurring in
December.

4.4 Relative Humidity

Humidity is high and rises to about 89% during the southwest monsoon in the month of June.
The mean monthly average relative humidity varies between 73% and 84%.

4.5 Precipitation

The average rainfall is around 1835mm per annum. Vizhinjam gets most of the rainfall from
the south west monsoon which lasts till September. May to November is the wettest months of
the year with an average rainfall in excess of 220mm per month, with a maximum of 356mm

13
in June. Dry weather sets in by the end of December lasting up to May with average rainfall of
approximately 27mm per month.

4.6 Cyclone

Cyclones occasionally make landfall in the west coast compared to the east coast of India. It
is observed from the tracks of the cyclones in the Arabian Sea that in the last 100 years only 4
storms have passed nearby the project location of which only 2 had impact on the study region
in the above said period i.e. the frequency of the cyclone occurrence is approximately once in
25 years. Visibility Throughout the year visibility is good as the region has zero fog days and
therefore there are no constraints to the navigation because of fog.

4.7 Ships that can be called at port

The size of ships that can be called at Vizhinjam Port depends on the following aspects:

• The trading route and distance between Vizhinjam Port and origin/ destination ports;

• The facilities available at the loading/unloading port including the draft;

• Availability of a suitable ship in the market;

• Future availability of vessel on the market including „trickle down‟ effects from mainline
routes to secondary routes;

• Volume of annual traffic to be handled and the likely parcel size;

• Balance between capital costs for Vizhinjam port development and freight transport costs

4.8 Container Ships

Containerisation has grown exponentially worldwide since its start in the early sixties. With
the continuing trend of increase in vessel sizes, It is expected that vessels in the range of 8,000
TEU will „trickle down‟ to serve secondary or feeder routes in the future while the ultra large
vessels serve the primary routes.Theorderbook of major shipping lines agrees with the above
statement. MAERSK Lines order of 20 new 18,000 TEU ships from Daewoo Shipbuilding,8
new 13000TEU ships order by Nord Capital group,Hamburg,and the orders and acquisition of
ultra large container vessels by Evergreen,K-line,United Arab Shipping Company shows the
trend is getting stronger in the market.This trend can benefit Vizhinjam as it can handle the
largest container ship of 18000TEU.

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4.9 Transshipment Containers

With the lack of hinterland cargo,Containertransshipment will be the primary business for
Vizhinjam Port right and Vizhinjam can handle 18000 TEU vessels from the Phase-1
development.

4.10 Import/ Export Container Vessels

For the direct vessel calls serving the import/export cargo, the design vessels considered are in
the range of 1,000 TEU to 6,000 TEU.

4.11 Multipurpose cargo

4.11.1 general cargo vessels

The general cargo commodities such as Fertiliser, Raw cashew and Timber are likely to be
handled in ships, which range from 25,000 DWT to 40,000 DWT discharged using shore cranes
or slewing cranes mounted on the ship.For port planning purposes a 40,000 DWT is
recommended as the maximum design size of general cargo ship to be calling at the proposed
Vizhinjam Port.

4.11.2 Cruise vessels

As per the Drewry report, the estimated size of the cruise vessel varies from 1200 passengers
in Phase-1 to upto 3000 passengers in the Master Plan.

Table 4.1: Vessel-wise capacity

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4.12 Port facilities requirement

The Vizhinjam port Phase-1 development will be primarily focussed on container cargo
handling facilities requirements in terms of number and length of berths,navigational
requirements, terminal equipments, terminal storage area, road and rail access for the receipt
and evacuation of cargo and other utilities and service facilities where facilities are also
provided to Coast Guard and Indian Navy

4.13 Berth requirements

The berth length should be sufficient to accommodate the length of the vessel plus an allowance
at either end for mooring and clearances between vessels. The amount of clearance required at
either end of the vessel depends upon the vessel size. Minimum single berth length for the
design vessels are shown in Table

Table 4.2: Berth-wise capacity

4.14 Environmental Compliance

4.14.1 environmental baseline

Environment study was done within a radius of 10 km of the project site with land environment,
water environment, marine environment, air environment, noise, biological environment,
infrastructure and public utilities and the quarry sites as the major components of study.

4.14.2 land environment

The project area consists of marine water and land covered mainly by coconut. The coastal area
consists of multitude of rock outcrops/cliffs and few lateritic cliffs intermingled with beach
pockets without any eco-sensitive areas like mangroves or coral reefs. Behind the shoreline, at
about 500 m inward, agricultural land and coconut plantations are present in-between human

16
settlements. The Vizhinjam fishing harbour, which is a manmade harbour is located at the
northern side of the project site

4.14.3 water environment

Karamana River, Neyyar River and Vellayani Lake are the major water bodies present within
the project area. Vellayani Lake which is a fresh-water lake is the source of water for
Vizhinjam.Neyyar River is at 10 km distance boundary from the project area.Groundwater in
Vizhinjam area is being over exploited through bore wells and dug wells that contributes to
water scarcity but the water gets recharged during the monsoon season (June to October). The
groundwater in generally devoid of pollution.

4.14.4 marine environment

The Water depths within the project area is between a minimum of 0.0 m and a maximum of
22.5 m and the sea bed is gently sloping down in a South-west direction. The Northern part of
the Vizhinjam harbour area is a natural deep bay and the southern side is dominated by rocky
outcrops. The waves approach majorly from two directions: South to South-West and 53 West
to South-West. Waves from the South to South-West direction approach the near shore in May
to October, whereas in the rest of the year the waves come from the West to SouthWest
direction. The highest wave in the offshore of the proposed project area is of about 4.0 to 5.0
m. Waves of about 1.0 m are most frequent and around 20% of all waves in a year are between
1.0 m. and 1.25 m. The predominant current direction is south-east in the period between
February and October and the speed of the current is highest during the monsoon season. The
direction of the current is reversed during the post monsoon period ie, November to January.
There are three different types of seabed in the project area: Clayey/silty fine sand, fine to
medium sand and rock outcrops. The first two types of sediments are predominant within the
study area. The rocky outcrop is predominant near the shoreline. No other significant seabed
features were identified in the project area. For a safe operation of the harbour and the
terminals, the channel for the ships to approach and leave the harbour, as well as a turning
space for the ships, needs to be dredged. That is, sand needs to be removed to deepen these
areas. The approach channel that needs to be dredged has medium dense to very dense dark
grey silty sand, with occasional shell fragments on the top layer. Towards the deeper side of
the borehole the sediment is more soft and sandy clay/silty/dense in nature. In the turning circle
region the sediment is medium dense to dense clayey sand with shell fragments, and
occasionally silty. Since 1950 the shoreline erosion problem in thecoast of Kerala has been a

17
major issue for the State. Coastal protection measures were installed to protect the shoreline
from significant erosion. Today about 53% of Kerala‟s coast is artificial. In the proposed site
pocket beaches show a medium erosion trend, the north of Vizhinjam also shows erosion
tendency. Fill material will also be required apart from rocks for reclaiming land from sea to
develop the port area. In Phase-1, most of the fill material will be obtained from the dredged
material itself.

4.14.5 air environment

Kerala is located between the Arabian Sea and the mountains spread over the Western Side of India,
the Western Ghats. The location of kerala influences the local climate, as the dry winds from the North
are shielded by the mountains and the breeze from the ocean cool the temperature around the coast. The
seasons of Kerala are Winter, Summer, SW Monsoon and NE Monsoon.The mean temperature during
these seasons is more or less similar and around 27-28°C. During the summer and winter a north-east
wind is dominant, with stronger winds during the winter period. During the monsoon season the South-
West and North-East wind dominates, which depicts the two different seasons of monsoon ie,SW and
NE monsoon. Hard winds in the form of cyclones are very rare in the Vizhinjam area.

4.14 Infrastructure & Terminal Equipment’s Requirements

The proposed container terminal will have two container berths with total quay length of 800m,
which can cater to a minimum of two container ships at any time. It is proposed to provide 8
Rail Mounted Quay Cranes (RMQCs) on these berths. There would be flexibility of moving
the quay cranes to the adjacent berths so that 2 to 5 cranes can be deployed on the ship size.
There commended quay crane to RTGC ratio is 1:3.It is proposed to provide 24 Rubber Tired
Gantry Cranes (RTGCs) for handling in the Container Yard.Two Reach Stackers are provided
to handle containers being moved by rails. For handling of Empty Containers,6 Side Picks are
proposed. For movement of containers between quay, container yard and rail yard 55 Internal
Transfer Vehicles (ITVs) are provided.

4.14.1 Ship-to-Shore Handling Facility (Rail Mounted Quay Cranes - rmqcs)

These are rail mounted travelling cranes on quay provided as a ship-to-shore handling facility.
They will have a front outreach of up to 65 m for handling 18,000 TEUs vessels. It is not
envisaged to stack any containers on the quay except in emergency situations. The cranes will
be provided with telescopic twin lift spreaders.

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 Fig 4.1: Ship-to-Shore Handling Facility

4.14.2 RTGs (Rubber Tired Gantry Cranes)

RTG cranes have long been the most common mode of operating worldwide in a container
yard. RTGs operate on rubber tires and can roam anywhere in the container yard. They typically
run on reinforced concrete runways and are diesel powered.Electrical powered RTGs are the
present trend in container handling industry.AsVizhinjam is a green project,provisions for
Electric RTGs are provided that will will run with zero emission compared to a diesel-powered
RTG.

4.14.3 Internal Transfer Vehicles

These are the vehicles used for cargo movement within the terminal area from berth to storage area and
storage area to rail yard or vice-versa. Generally trucks with a forty feet long trailer are used for
container handling and dumper trucks are used for bulk cargo. The battery operated ITVs are also in
practice in place of diesel based ITVs in upcoming terminals developing on green and eco friendly
mechanisms.

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Table 4.3: Container terminal equipment

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 CHAPTER 6
FUTURE OF VIZHINJAM PORT
The future of Vizhinjam Port holds tremendous potential as it continues to evolve as a
prominent maritime hub in India. This section aims to explore the future prospects and
developments for Vizhinjam Port, considering its strategic location, infrastructure, government
initiatives, and emerging trends in global trade and shipping.
6.1 Expansion and Capacity Enhancement : To meet the growing demands of international
trade, Vizhinjam Port envisions significant expansion and capacity enhancement in the coming
years. Planned projects include the construction of additional berths, container terminals, and
storage facilities. These expansions will boost the port's capacity to handle larger vessels and
accommodate a higher volume of cargo, positioning Vizhinjam as a key player in the
transshipment landscape.
6.2 Integration of Technology and Automation: The future of Vizhinjam Port lies in the
seamless integration of technology and automation to enhance operational efficiency and
productivity. Implementation of state-of-the-art terminal operating systems, advanced cargo
handling equipment, and real-time data analytics will streamline port operations, reduce
turnaround times, and improve overall customer experience. Additionally, the adoption of
blockchain technology for supply chain management and smart port solutions will contribute
to increased transparency, security, and cost-effectiveness.
6.3 Development of Multi-Modal Connectivity : Recognizing the importance of multi-modal
connectivity, Vizhinjam Port aims to strengthen its transportation network by integrating
various modes of transportation. Plans include the development of dedicated rail and road
infrastructure connecting the port to major industrial hubs and hinterland regions. Furthermore,
the establishment of efficient inland waterway transportation systems will enhance
connectivity and provide cost-effective alternatives for cargo movement.
6.4 Sustainable Practices and Green Initiatives : In line with global sustainability goals, the
future of Vizhinjam Port emphasizes environmentally friendly practices and green initiatives.
The port management is committed to reducing carbon emissions, optimizing energy
consumption, and implementing waste management strategies. Integration of renewable energy
sources, such as solar and wind power, will not only reduce the port's ecological footprint but
also lower operational costs in the long run.
Attracting Transshipment and Value-Added Services : To position itself as a preferred
transshipment hub, Vizhinjam Port aims to attract major shipping lines and establish strategic
partnerships. The port's strategic location along international shipping routes, coupled with its
expanding infrastructure and competitive advantages, makes it an attractive choice for
transshipment operations. Additionally, Vizhinjam Port envisions offering value-added
services, such as warehousing, distribution centers, and logistics parks, to create an integrated
logistics ecosystem that caters to the diverse needs of global supply chains.
Government Support and Policy Initiatives : The future of Vizhinjam Port is strengthened by
the continuous support and policy initiatives of the government. The Central and State
governments have taken active measures to promote port-led development, provide necessary
regulatory frameworks, and facilitate investments in port infrastructure. These initiatives aim

21
to create an enabling environment for private sector participation, attract foreign direct
investment, and foster economic growth in the region.
The future of Vizhinjam Port appears promising, with its strategic location, expansion plans,
integration of technology, and emphasis on sustainability. The port is poised to become a key
transshipment hub in India, serving as a gateway for international trade and contributing
significantly to the regional and national economy. With ongoing developments, government
support, and a customer-centric approach, Vizhinjam Port is well-positioned to seize
opportunities and overcome challenges in the dynamic global maritime industry.

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 Chapter 7

CONCLUSIONS

Vizhinjam port will be India‟s deepest port with a natural draft of 20m that will be able to berth
mega vessels of 18000teu capacity.The first phase of the project will have a 800m berth with a
break water area of 3180m and an adjoining 500m long container yard.The Master plan also
include a 500m fish landing centre ,a modern 300m cruise terminal to promote tourism related
activities and permanent base stations for Indian Navy and Coast Guard.Vizhinjam receives a
monetary benefit of 500crore Indian Rupee from the defense force for providing the facilities
and this also speeded up the Enviornmental clearance from the Central government.The Union
Ministry of Shipping and Ports favours Kerala states demand to exempt Vizhinjam
International deep sea container transhipment terminal from cabotage laws to make the project
proposal a viable investment proposition.The Union ministry of Enviornment and Forest has
accorded enviornmental and coastal regulation zone clearance to Vizhinjamproject.The project
worth Rs.4010 crore is proposed to be takenup under the public-private partnership and on
Build Operate and Transfer basis.The Kerala government will develop the break waters and
approach channels road and rail and will also provide the backup land for the port.The BOT
operator will build the port infrastructure such as berths and container yards and install cranes
and other superstructures. In many PPP projects the BOT operator is entrusted with the entire
responsibility of developing the approach channel,dredging,reclamation, and provision of
navigational aids etc.Even the responsibility of rail and road comes on the bidder in some
cases.But the Government of Kerala have divided the areas of responsibility among private and
public sectors logically.The whole involvement of private sector or public sector in port
operations will lead to a monopoly and is not good for an efficient operation of the port.This
decade is witnessing the steady increase in the size of container ships.The trend of building
bigger and larger ships will remain strong in the coming years with the aspect of economics of
scale.The largest ships in service,Maersk EEE Class container ships of 18,270 teu capacity
have a 30 percent operational cost benefit from the conventional type.Widening of panama
canal,that on completion could occupy vessels upto 12000 teu is also a reason for the trend of
larger vessels.When the ships becomes bigger they need deeper berths and approach
channels,higher capacity cranes and efficient turnaround time.The maiden voyage of
“McKinney Moller” of Maersk has made only 13 limited port calls in its Europe –Asia service
and the EEE class vessels of Maersk did not make a call at any of the ports in South Asia.The

23
important criterias for such ships to call at a port are deeper ports and approach channels,close
proximity to international shipping routes ,high capacity cranes with outreach extending upto
22 rows across the ships beam and shorter runaround time with excellent container handling
capability.Colombo and Vizhinjam are the only ports likely to be developed as mega container
transhipment terminals in South Asia.Colombo and Vizhinjam have close proximity to
international ship routes with a marginal diversion of 22-25 nautical miles.The new deep berths
planned under the South harbour extension of Colombo will ensure a depth of 16-18m capable
of accomodating mega container carriers.ButVizhinjam has the added advantage of deeper
berths and approach channels upto 20m that have low dredging and approach channel
maintenance cost.Vizhinjam have the freedom to fix its own tariff based on a competitive
market enviornment since it is a non major port and comes outside the jurisdiction of the Tariff
Authority of Major ports.About 75percent of traffic passing through Colombo is transhipped
from Indian ports.Five major port operators like Gammon Infrastructure Projects,Hyunda-Con-
Cast consortium,EssarPorts,AdaniPorts,andSrei-OHLa consortium of Srei Infra and Spanish
Construction company ObrasconHuarte Lain have responded to the global tender floated by
Vizhinjam International Seaport 73 Limited.From the interest of international port operators in
developing Vizhinjam port itself shows the potential growth ahead of Vizhinjam as an
emerging Transhiipment hub to the Indian Peninsular region.

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 Chapter 8

REFERENCES

1. Smith, J., 2022, Maritime Logistics and Port Management, 4th edn, Routledge,
London, UK.

2. Brown, A., 2023, "Port Efficiency: A Comparative Study of Vizhinjam and Other
Indian Ports," Journal of Maritime Research, 15(2), 45-62.

3. Cook, R.D., 2023, "Sustainable Development Strategies for Vizhinjam Port: A Case
Study," International Journal of Sustainable Transportation, 8(1), 32-48.

4. Johnson, L., 2023a, "Transshipment Trends and Opportunities in Vizhinjam Port,"

Journal of Port Economics, 12(3), 128-145.

5. Johnson, L., 2023b, "Investment Prospects and Future Growth of Vizhinjam Port,"
Journal of Maritime Economics, 25(4), 198-215.

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