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Vizhinjam Port: India’s Global Shipping Leap to Save $220 Million Annually

India opens a game-changing deepwater port to reclaim transshipment business and cut massive foreign shipping costs

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Vizhinjam Port is poised to reduce shipping costs and enhance global trade. X/@narendramodi

India’s maritime sector marked a major milestone as Prime Minister Narendra Modi launched the Rs 8,800-crore Vizhinjam International Deepwater Multipurpose Seaport in Kerala on May 2

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Developed under a public-private partnership with Adani Ports and Special Economic Zone Ltd (APSEZ), the port is strategically located just 10 nautical miles from key international shipping lanes and is set to redefine India’s global shipping footprint.

For decades, nearly 75% of India’s transshipped cargo was routed through ports overseas like Colombo and Singapore. This has caused an estimated $220 million annual revenue loss and businesses are bearing additional costs of $80–$100 per container.

Vizhinjam aims to change this, with natural depths of 20 meters enabling it to host the world’s largest container vessels—ships that previously bypassed Indian ports, reported Bloomberg.

Boosting India’s Shipping Self-Reliance

Prime Minister Modi emphasised the port’s transformative potential, stating its capacity will triple, ensuring India’s funds fuel domestic economic opportunities. “India’s money will now serve India,” he said while addressing the inaugural ceremony in Thiruvananthapuram, Kerala.

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Karan Adani, Managing Director of Adani Ports & Special Economic Zone Ltd., told Bloomberg that India is a strategic “sweet spot” in global trade despite global uncertainties. Bloomberg also revealed that the Vizhinjam port has already handled over 250 container ships. The project is expected to attract Rs 180 billion across all phases and generate Rs 95 billion ($1.1 billion) in additional investments.

Vizhinjam was recently included in the Jade service route of Mediterranean Shipping Co., linking India to China, South Korea, Singapore, Spain, and Italy, according to ET. The port’s rise also coincides with geopolitical trade disruptions, including Donald Trump-era tariffs that had strained global container flows.

Experts believe that Vizhinjam will play a vital role in reducing supply chain risks, boosting Adani’s port network, and shifting India’s maritime dependency away from Chinese-influenced ports like Colombo port.

“If full-fledged operations begin as planned by 2028–29, the facility could significantly boost cargo movement across Adani’s wider network of ports and terminals along the east and west coasts of India,” Afaq Hussain, Director at New Delhi-based consultancy Bureau of Research on Industry and Economic Fundamentals told Bloomberg.

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The launch of Vizhinjam Port could be India’s deepwater leap into maritime self-reliance.

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