Will Vizhinjam Port Change The Economic Profile Of Thiruvananthapuram?

Vizhinjam International Seaport, the country’s first deep water transhipment port is Kerala’s gift to the nation. The first phase of 3,000 metre breakwater and 800 metre container berthing facility has been set up at a cost of Rs 8,867 crore. The Kerala government has pumped in Rs 5,595 crore, partner Adani invested Rs 2,454 crore while the Centre, a measly Rs 800 crore by way of viability gap funding. The loan is repayable from future dividends. It is learnt that Adani group will invest another Rs 2,000 crore during the second and third phase of the project. It is estimated that the nation loses $220 million per annum for want of a transhipment port. In another estimate, the loss can be pinpointed to $ 100 per container. While in the first phase, Vizhinjam Seaport will handle one million twenty foot equivalent units (TEUs), on completion in 2028, the capacity would be 5 million TEUs. For Kerala, the port could end up as a major employment generator. For starters, the port has employed 755 people so far. While 67% of the workforce is from Kerala, 57% are from Thiruvananthapuram district. Notably, 35% of those employed are residents from the immediate vicinity of the port, thereby keeping the government’s promise of local job generation. Indications are that once the port is at full stream, it is expected to create a ripple effect in Thiruvananthapuram where there will be a surge in employment opportunities for dock workers and logistics personnel to transport, warehousing and ancillary service providers. And also, local economics is expected to increase demand for goods, housing, retail etc.