Vizhinjam International Deepwater Mutipurpose Seaport project will take on peers by ‘pricing itself suitably in and providing the best infrastructure.’
“It will be a game of costs… how you are able to price yourself compared with Colombo, for instance,” said Karan Adani, Executive Director of Adani Ports and SEZ, project concessionaire.
As for the Adani Group, it has a string of ports across the Indian coast which enables it to give value to shipping lines in India.
“We’re not just restricted to one port. Most of the other players are restricted to one terminal or one port. So that’s the advantage that we bring to the shipping lines apart from infrastructure and price,” Adani said.
Asked about strategic tie-ups with shipping lines, he said it is too early to take a call on it.
Cost factor “We will, once we’re close to commissioning the terminal, depending on how the response has been from the industry and the level of excitement generated. Even transhipment has become a play on costs because if a terminal is offering $10 less, the lines will move lock stock and barrel to it. They won’t have love lost for Colombo, or any terminal for that matter,” he said.
Shipping lines will have a major role for setting the agenda, especially for Vizhinjam, since it is purely a transhipment terminal.
Cabotage question Local cargo here is very little. The hinterland is very small. So it will be purely a ‘lines-driven’ game. But there is no undue worry about another port, Colachel, likely coming up in the vicinity since there is enough cargo for everybody, Adani said.
On exemption from cabtoage rules, he said the State government is lobbying quite hard. It is the Centre’s decision.
“We’ve not received any positive signal. But I must say we haven’t received any negative signal either,” Karan added.