The international shipping lines are increasingly considering using the newly opened Vizhinjam Transshipment terminal as they face delay from cargo congestion and other work disruptions in Colombo Port.
This is evident from the enquiries received by the terminal due to the congestion at Colombo, prompting shipping lines to skip that port.
“We are getting enquiries from shipping lines for berthing facilities, but it would take some more time to accommodate vessels”, an official source in Vizhinjam International Seaport Ltd said.
There are reports that ships calling at Colombo were forced to wait there for more than five days to berth due to congestion and reported strike by Customs authorities which delayed cargo clearing. There has been a drop in volumes in June due to the strike, resulting in the piling up of cargo, sources in the shipping fraternity said.
Binu K.S., president of Kerala Steamer Agents Association said bigger container vessels will prefer Vizhinjam which is going to be a real game changer. But Vizhinjam is not a Special Economic Zone and transshipment from the terminal needs more documentation from various authorities to move forward. Once that part is cleared, Vizhinjam port will surpass Cochin transshipment volumes, he said.
C.S.Kartha, managing committee member of Kerala Steamer Agents Association said the first vessel that berthed Vizhinjam on the inaugural day is part of a trial run. But the port requires a tariff structure to begin its operations. Around 5.5 million TEUS of Indian cargo was transshipped through Colombo Port and Vizhinjam can offer a competition once all the facilities are ready.
According to Binu, the opening of Vizhinjam will help mainlines to depend on one more alternate route to offload and tranship cargoes destined to various ports. Keeping window berthing is vital for shipping lines to maintain their schedules, but the ongoing congestion and traffic disruption affects all major lines and their window berthing systems. This in turn compels major carriers to skip some ports enroute to the US and Europe.
A highly placed source in the shipping circles said Vizhinjam Port can offer a viable alternative India’s Exim trade to reduce dependence on Colombo Port as they have taken advantage of the prospects of transshipment business. Along with Vizhinjam, Cochin can also offer a viable and cost effective alternative to Colombo Port.
Karan Adani, Managing Director Adani Ports and Special Economic Zone during the inaugural ceremony said the first phase of the Vizhinjam project would be completed much before December this year and is expected to handle one million TEUS per annum.