By Dr Jose Paul
Commissioned in July 2024 and beginning commercial operations in December 2024, Vizhinjam International Seaport has made a strong entry into the global container shipping sector.
By the end of July 2026, the port had handled 1,057 vessels and 2.24 million TEUs (Twenty-foot Equivalent Units) of containers. This means Vizhinjam has already surpassed its initially announced capacity of 1.6 million TEUs.
However, the port now faces a new phase — competing with some of the world’s most established transshipment hubs while building a sustainable cargo base.
Vizhinjam will compete with established transshipment ports such as Dubai, Salalah, Colombo, Singapore and Malaysia’s Port of Tanjung Pelepas.
Key competing ports:
Dubai handled 15.5 million TEUs, making it the ninth-largest container port globally. Around 60 per cent of its cargo is transshipment traffic.
Salalah in Oman handled 3.79 million TEUs and ranks among the world’s major container ports, with nearly 52 per cent of its volume coming from transshipment.
Colombo, located just about 200 nautical miles from Vizhinjam, handled 8.29 million TEUs and ranks among the top container ports globally. Around 81 per cent of its cargo is transshipment.
Singapore, the world’s second-largest container port, handled 44.66 million TEUs, with nearly 85 per cent of its traffic being transshipment cargo.
Malaysia’s Port of Tanjung Pelepas handled 12.2 million TEUs, with about 95 per cent of its cargo coming from transshipment operations.
These ports have gained global prominence due to their advanced technology, high productivity levels, quick vessel turnaround times and deep berths capable of handling large mother vessels with drafts of 18-20 metres.
Ports are broadly classified into two categories based on their operations — transshipment ports and gateway ports.
Transshipment ports handle large mother vessels that carry massive volumes of cargo. These vessels operate from a limited number of deep-water ports with advanced infrastructure. Containers are transferred between mother vessels and smaller feeder vessels, which transport cargo to and from smaller regional ports.
Gateway ports, on the other hand, primarily depend on cargo generated from their surrounding hinterlands. They collect export cargo from inland markets and distribute imported goods to regional destinations.
Gateway ports have a relatively stable business model as they rely on their own domestic markets. Transshipment ports, however, depend heavily on external cargo sources and shipping lines have the flexibility to shift their operations between ports depending on commercial advantages.
This makes competition among transshipment ports intense and creates uncertainty about long-term cargo retention.
Against this backdrop, Adani Ports’ decision to partner with Mediterranean Shipping Company (MSC), the world’s largest container shipping line, is considered strategically significant for Vizhinjam’s future growth.
MSC’s partnership and its reported 49 per cent stake in the port project could provide additional stability and support for future expansion plans.
The association is expected to help Adani Ports secure financial support for completing planned development projects and strengthening Vizhinjam’s position as a global transshipment hub.
Vizhinjam has ambitious expansion plans, with the second, third and fourth phases of development expected to be completed by 2028 at an estimated cost of around ₹10,000 crore.
Meanwhile, competing ports are also expected to expand their infrastructure over the next few years. Therefore, Vizhinjam will have to demonstrate not only geographical advantages but also clear economic and operational benefits for shipping lines to shift existing services or introduce new routes.
Key challenges:
Increasing physical capacity along with expanding the customer base.
Developing a stronger hinterland market.
Attracting export-import cargo to become a gateway port.
Improving road and rail connectivity.
The port expects export-import cargo to account for 30-40 per cent of its total cargo volume within the next four years. However, achieving this target will be challenging due to competition from nearby ports such as Kochi, New Mangalore, Tuticorin and Chennai, which already have established influence over regional cargo movements.
The absence of direct rail and road connectivity to Vizhinjam remains a major challenge in attracting gateway cargo.
Even after connectivity projects are completed, transportation costs could continue to influence exporters and importers when choosing ports.
Despite having around 25 years of operational experience, Port of Tanjung Pelepas and Salalah have managed to attract only around 5 per cent and 15 per cent gateway cargo respectively.
This highlights the difficulty of building a gateway cargo base in a transshipment-focused port.
For Vizhinjam, the most practical strategy would be to maximise transshipment volumes while steadily developing gateway cargo capabilities.
The port aims to increase its handling capacity to 5.71 million TEUs within the next four years. Achieving this target will require sustained efforts to attract more shipping services and strengthen its position among global transshipment hubs.
With its deep-water advantage, strategic location and growing infrastructure, Vizhinjam has emerged as a significant contender in the global container shipping map. However, maintaining this momentum will depend on its ability to compete effectively in an increasingly competitive market.
(Dr Jose Paul is former acting chairman of Mumbai Jawaharlal Nehru Port and former chairman of Mormugao Port Trust.)