Vizhinjam International Container Transhipment Terminal

The long cherished dream of Kerala, the Rs.53.48 billion Vizhinjam International Container Transhipment Terminal, is going to be materialised as the cabinet has approved the tender submitted by a consortium led by Hyderabad based Lanco Kontapalli Power Private Ltd.

A transhipment terminal requires deep draft and proximity to international shipping routes. Vizhinjam fits the bill on both counts, especially in the matter of draft. The natural depth available close to the shore is more than 18 metres and is going up to 21 metres at one nautical from the coast requiring hardly any maintenance in dredging.

The consultancy services consists of three phases viz.,

* Phase I: Traffic assessment and preliminary viability including traffic studies, surveys, port planning, master planning and financial viability
* Phase II: Detailed feasibility and project structuring including financial and economic analysis
* Phase III - Providing technical inputs to RFP preparation, Draft Licence Agreement, assistance during Technical and Financial Closure.


Proximity to the international shipping route and East-West shipping axis and to Thiruvananthapuram city that has an international airport, human resource and social
infrastructure also shores up the project. It is to be built on an area of 150 acres and there will be no displacement of local fishermen. The port will be able to handle 4.10 million containers annually.

The lack of an international transhipment terminal has been resulting in a revenue loss of Rs.1,000 crore for the country a year as per the Tenth Plan document as
almost 70 per cent of the transhipment business meant for India is being handled by ports such as Colombo and Dubai now. The availability of such a deep draft will
ensure passage of the largest of the container liners and those of the future also.

The first phase of the project would be completed in three years. The State government would have a 24 per cent share in the company to be formed for implementation of the project. The BOT contract would be for 30 years after which the terminal would become the State property.

Vizhinjam International Sea Port Limited CEO Dr Jayakumar says, "The Rs 4,300 crore project has been the state government's pet project and will be built on a Built-To-Transfer basis of 30 years."

Cost
The total cost of the project is Rs. 43 billion ($950 million) and it would come in three phases. The entire proposal is with the Central Government. A consortium of three companies (two Chinese and a Mumbai-based firm) have been selected to build it.