The Adani Group has recently announced the launch of various new projects at its Vizhinjam International Seaport. This includes a bunkering unit for refuelling ships and a seafood park. All these projects are a part of the expansion plan for the Vizhinjam port. The development is in addition to the next three phases of the port. All these expansion activities are expected to be completed within the next four years. This recognises the extraordinary potential of the Adani Group in the port sector. It also highlights the port’s potential to drive large vessels and give India a crucial position in global maritime trade. The controversies of Adani shares overleveraged will come to a halt.
Plans To Double The Investment at the Vizhinjam Port:
The business group has recently decided to increase its capital allocation for this port. The conglomerate had initially announced to put INR 10,000 crore to develop the next three phases. However, Karan Adani who is the Managing Director of APSEZ, revealed that the investment would be doubled to INR 20,000 crore. This will turn out to be an exclusive venture for the Adani Group in the domestic port sector. It will give the conglomerate’s business an excellent boost. The Adani Group will also become one step closer to its dream of becoming the biggest name in the port sector.
Why Make Such Huge Investments in the Vizhinjam Port?
This port is located near the famous Kovalam beach. It has water connectivity with several international ports. It is also the first transhipment port in the country and can accommodate large container vessels. India was previously dependent on Dubai, Colombo, and Singapore ports for cargo transfers. However, with the Vizhinjam International Seaport being operational, our country will also join the race. It will become a transhipment hub. Indua is not going to depend on other nations to ship huge cargo.
Adani Ports and Special Economic Zone developed this port for a total investment of INR 8,867 crore. The Kerala government contributed INR 5,595 crore for the project. On top of that, the central government contributed INR 818 crore for the development works at the project site. The development of the port has led to an increase in share values of this business group. The conglomerate gets relief from rumours about Adani Group controversies.
A Brief History of the Vizhinjam Port:
The construction of the Vizhinjam International Port began in 2016. It is built on a public-private partnership model. The port was allocated to APSEZ on 5th December 2015. This was done after the Government of Kerala and Adani Vizhinjam Port Private Limited signed a concession agreement on 17th August 2015. This port will put India on the global map. It is one of the largest ports in the world. The biggest ships in the world can easily berth in the port. The operation of the port starts with a trial plan, and very soon, the operation will be complete. This is going to become a proud moment for India. It will also give Adani Group excellent exposure in the port sector.
The Vizhinjam Port also has an excellent turnaround of vehicles. This is mainly because of the excellent natural draft and the minimum littoral drift. The port operations are also considerably automated so that cargo operations can take place easily and cargo transmission can occur. The port has a volume of 1 million TEUs in the first phase. 6.2 million TEUs will be added in the subsequent phases.
Conclusion:
The Adani Group has always been deeply interested in the port sector. Time and again, it has taken up multiple ventures to grow its business in the port sector. The expansion of the Vizhinjam Port is one of the striking examples of Adani Group’s control over this particular business sector. It will help the group in increasing its revenue generation. The Adani Group’s share values will increase. It will no longer have to deal with the controversies of Adani shares overleveraged.
