With China focusing on Hambantota Port, traders seek quick remedies at Vizhinjam

Hambantota International Ports Group has announced a significant investment for the installation of four quay cranes and 13 rubber tyred gantry cranes to expand the port’s capacity to handle 1 million TEUS. The upgraded facilities are likely to offer intense competition to Vizhinjam Port, said Binu K.S. of Kerala Steamer Agents Association.He pointed out that the containerised operations in Vizhinjam are facing operational hindrances due to limited space availability in the absence of an Immigration Check Post (ICP) as cited by the Container Shipping Lines Association. Shipping lines which have already commenced operations from Vizhinjam are finding difficulties to accommodate their Indian transhipment volumes due to limited space availability and lack of ICP status.

Vizhinjam Port has already handled more than 200 vessels in a short span of around 6 months with shipping majors MSC starting to call its JADE and Dragon vessel services. Capacity constraints coupled with procedural delays may compel lines to look for options in the region and the development of Hambantota would turn out to be their choice, Binu added.Considering this, the government’s initiative to woo more Indian transhipment to Vizhinjam may hit a roadblock if there is a delay in granting ICP status, he said.

MSC vessels have already started calling Hambantota where the Chinese authorities are setting up transhipment facilities including bunker supply. The on-going congestion at the Colombo terminal would also help the underutilised Hambantota Port to handle more cargoes.

SN Raghuchandran Nair, President of Trivandrum Chamber of Commerce and Industry said “trust deficit is high for Chinese operators worldwide and the Hambantota port is not a competitor for Vizhinjam as its future looks promising”.

Teething problems always occur when a greenfield project is coming up. However, the authorities have taken steps to resolve the issues faster especially when the Adani Group has announced ₹30,000 crore investment for the second phase of expansion of Vizhinjam port project to be completed in three years, he said.

Even after its commissioning in December 2024, the port has handled 3.34 lakh TEUS in a short span. They are now focussing on transhipment cargoes and there is a need to do gateway traffic as well for which requirements like customs, emigration are needed. Likewise, connectivity to national highway and railway lines has to be ensured. Things are progressing but would take some more time to materialise, considering the Kerala conditions that involve land acquisition, he added.