Vizhinjam: The Port of Hope There
is one crying need of the fair city of Thiruvananthapuram
that has been hanging fire ever since I can recollect. Calls
for and moves to construct a port for the city have been going
on even longer I am sure. However, nothing has materialized
beyond grandiose plans and a few ambitious signboards announcing
various "projects" which I often glimpse as I make an occasional
trip to Kovalam. Now as the State Government is on the threshold
of another attempt at building the port, let us take a look
at what makes this project so significant not just to Thiruvananthapuram
or Kerala, but to our whole country.
A feature that almost every
port in India lacks is deep draft - the depth inside their
harbours that is essential if large ships are to dock. In
fact, there is no true deep-water port in India currently
if we assume a permissible draft of about 20 metres as the
qualification. Simple economics dictates that bigger ships
can carry cargo at much cheaper rates than smaller ones. This is especially true in case of crude oil
and containers. Giant supertankers can bring in crude at much
lower rates than currently possible in India while container
"mother ships" carry containers at rates that are cheaper
than the coastal carriers found in Indian ports today. However,
no Indian port can accommodate a supertanker. Some ports like
Mumbai and Kakinada can accommodate container carriers but
are hard pressed to dock the biggest of these. Currently,
containers bound for India are trans-shipped from big carriers
to smaller vessels mainly at Colombo, which handles more container
traffic than most of the major Indian ports combined. Efforts
are underway to improve the situation. Several harbours are
being deepened and new projects like the Vallarpadam Container
Trans-shipment Terminal in Kochi are taking shape.
But all these require massive
capital dredging as well as intensive maintenance dredging,
both of which are very expensive. Import of crude oil by supertankers
and subsequent trans-shipment to smaller ships is currently
taking place at locations like Sandheads, near Kolkata and
at Vishakhapatanam. However, most of these efforts are conducted
out at sea, and hence are vulnerable to the vagaries of the
weather, slow and clumsy. Thus, we see that the lack of deep
draft ports can turn out to be a major bottleneck in the economic
development of the nation.
However there is a solution
on the horizon. There is a location for a port at the southern
tip of the sub-continent which could be a solution to all
this. Near Thiruvananthapuram, is a sleepy fishing village
called Vizhinjam. It already possesses a rudimentary fishing
harbour. But, the significance of this site lies in the fact
that it possesses a natural harbour unrivalled in its draft.
Studies conducted at Vizhinjam
have shown that there is a natural depth of up to 23 metres
here. A port constructed here could easily accommodate ships
with displacements of up to 300,000 tons, with little or no
dredging. Compare this with the fact that most of the current
ports are hard pressed to accommodate ships of even 200,000
tons even after massive dredging. A comparatively scant 5-6
metres of dredging at Vizhinjam means that it could accommodate
even the biggest ship in the world, with a whopping displacement
of more than 564,000 tons! Basically this means that the Vizhinjam
port can handle supertankers and the biggest container mother
ships with ease. That is not all, this site is possibly closer
to the main international shipping lanes than any other current
port in India, which makes it all the more cheaper for ships
to call here. This also opens up avenues for bunkering
(re-fueling) of ships as well as ship-repair. Between three
and six container berths here could serve as a starting point
for an international trans-shipment hub. Consider that Colombo
alone currently handles over 1.5 million containers a year,
and it has actually run out of capacity! The container traffic
into and out of Indian ports has sharply increased to over
2.5 million units today. The trans-shipment market is clear
and wide open. On the crude transshipment front, a land based
transshipment facility with a storage complex and docking
piers, will reduce turn around time for ships as well result
in a significant fall in the import price of crude passing
through here. We also have to remember that crude oil is India's
single biggest import and that the Vizhinjam site lies very
close to the main Persian Gulf - Far East shipping lanes used
by most supertankers. Finally, Vizhinjam has yet another ace
up its sleeve in the fact that it requires very little maintenance
dredging, due to its sheltered location. Similarly, unlike
East coast ports or those in Gujarat, the Kerala coast suffers
comparatively little disruption from cyclone activity.
In addition to the obvious
benefits stated above, a slightly more farsighted approach
can envision the construction of a major dry dock facility
inside the harbour to construct deep draft ships as well as
to provide repair facilities to ships passing by on the shipping
lanes. The biggest Indian shipyard today has a maximum ship
building capacity of less than 150,000 tons. This cannot cater
to the need of the domestic shipping industry nor tap into
the huge international demand for ships. Most of the major domestic orders actually flow
to foreign shipbuilders, usually in Korea. The shipbuilding
industry can look forward to a solid future as shipping capacity
expands and old ships are replaced. A case in point would
be the fact that in the next few years, millions of tons of
shipping will have to be built as single hulled tankers are
replaced by double-hulled ones, in line with maritime regulations.
Additionally, a coal fired thermal power station with coal
import facilities can also be envisaged, as done in Ennore.
This would help solve Kerala's current power crisis.
Why all this hasn't happened
already, is a rather interesting question. Not that Vizhinjam
is unknown to the concerned authorities. The State Government
has been juggling around with the project for decades now.
It has been all talk and plans, but precious little action.
A few years ago, a Build-Operate-Transfer (BOT) agreement
was signed with a private company but nothing transpired.
However, recently interest seems to have been rekindled in
the project. A project study has been completed and the State
Government claims that global tenders will soon be called
for a BOT venture for the port. An investment of atleast Rs 3000 crores will
be required while overall project completion time will be
about 3 years. Such a venture will require a range of clearances
from the Central and State Governments but it seems both of
them are finally waking up to reality and throwing their weight
behind the project. The State Government has announced in
recent days that it plans to hold a Global Investor Meet to
rope in private developers for the project. However, it is
often claimed that powerful lobby groups often impede the
progress of the project, as they fear it would erode the revenue
of their own port operations. Let us hope at least this time,
the project takes off. It is one development which could make
a very significant contribution to India's economic progress
in the coming years.
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