Vizhinjam (Kerala) [India], May 2 : Karan Adani, the Managing Director of Adani Group's ports business, on Friday said they aim to make the just-launched Vizhinjam International Deepwater Multipurpose Seaport the most efficient port and help traders reduce their logistics costs.
The Prime Minister dedicated to the nation on Friday the Vizhinjam International Deepwater Multipurpose Seaport, the country's first dedicated container transshipment port.
Talking to ANI, Karan Adani, MD, Adani Ports and SEZ, said they expect Phase 2 of the seaport in Kerala to be completed by 2028. The work for Phase 1 of the seaport is now complete.
Vizhinjam Port will reduce reliance on foreign ports for cargo transshipment. Its natural deep draft of nearly 20 meters and location near one of the world's busiest sea trade routes further strengthen India's position in global trade.
The seaport's current capacity is 1.2 million twenty-foot equivalent units (TEUs), and the aim is to increase it to 5 million TEUs by 2028.
"We have to make this (seaport) one of the most efficient ports, not just in the country, but globally, and help the Indian importers and exporters reduce their logistics costs," Karan Adani said.
Karan Adani said that Adani Ports' business targets at least a 25-30 per cent reduction in logistics costs.
On the launch of operations at their ambitious seaport, which has faced several challenges, "We are proud that we built a full-class asset that will help the country and that the country can be proud of. Most importantly, it was one of the most challenging projects for the group. And it's good to see it coming to life and coming into operation."
The execution of the Vizhinjam Port project was fraught with challenges - natural calamities, material shortages, agitations resulting from apprehension related to coastal erosion and livelihood loss, and the Covid pandemic that caused further delays.
"We faced two cyclones, we faced strikes, we had seven million tons of rocks to bring in, which was a big challenge. But I must appreciate that the team has been extremely dedicated and strong in their commitment, and most importantly, I must thank the government of Kerala and the people of Trivandrum for supporting the project even during the toughest times," Karan Adani said.
Amidst trade uncertainty emanating from US trade policy, he asserted that India is in a sweet spot.
"So I think globally, though there is uncertainty, there is still growth. And we do believe that the South Asia region is going to grow. And if the country (India) needs to grow, trade has to grow almost twice the country's growth. And we are very bullish that the marine infrastructure, the ports, will be the key enabler in driving that growth," Karan Adani said.
On the ambitious India-Middle East Corridor project, Karan Adani said their ports on the Indian western coast and in Israel's Haifa can play a key role.
"I think it is a critical project for the country because it gives an alternate route outside the Suez Canal. That doesn't mean that the Suez Canal will shut down, but it just gives you an alternate route available to hedge your bets and avoid any disruption, as we saw when the ships grounded in the Suez Canal and affected the whole supply chain. As a country, if we have to be self-reliant in manufacturing and supply chain, IMEC plays a very important role. And that is where, on the Indian side, our ports on the western coast and the exit at Haifa, where we would like to connect and see how we can help the end consumers and the Indian exporters and importers improve their cost," he weighed.
When asked about expansion plans for Adani Ports' business, without getting into specifics, he said that they always actively look for ports outside of India, predominantly in Southeast Asia.
"This is our region. And we want to play in the Bay of Bengal and the Arabian Sea network. That is what we are looking at," he added.