Adani explores road logistics partnerships for cargo transport at Vizhinjam port

When EXIM (export-import) cargo operations start at Vizhinjam International Port before the end of the year, about ten companies are in talks with Adani Ports about moving their cargo by road. Many businesses that currently rely on feeder ships to handle their import and export containers through Colombo or Vizhinjam will now have a direct connection to Europe. The businesses operate in the automobile, retail, clothing, and other manufacturing industries.

Discussions are currently underway, driven by the port’s readiness for EXIM operations once road connectivity is established. Construction is in progress to link the port to the national highway, with completion expected in three to four months. Once operational, this link will enable trucks to transport containerized cargo from mother ships to various regions across the country.

This development saves time and cost for companies that import or export components, chemicals, and raw materials between India and Europe or China. It is estimated that importers can reduce the time taken to receive a consignment to 25 days or less compared to the 40-50 days if routed via Colombo or Vizhinjam to other ports along the eastern and western coasts using feeder ships. The consignments will then have to be moved by road from these ports to the factories.

The industrial clusters in the southern states are looking forward to EXIM cargo operations to begin. The road connectivity may be ready in three months. The port expects that 10 to 20% of its containers can be EXIM in three years. The rail connectivity will take three years, so it will take some time for EXIM to become full-fledged.

Vizhinjam Port, which completed a year since the first container ship San Fernando arrived on July 11, 2024, has so far handled 392 ships, including 23 ultra-large ships, and has handled 8.30 lakh containers. The port can handle 10 lakh containers in a year and will have the capacity to handle 62 lakh containers when subsequent phases are completed. The second phase expansion work is expected to start in the coming months.