- The recent Red Sea drone attack prompts major cargo rerouting, impacting global trade.
- Delays in Vizhinjam hinder large cargo handling, compounded by the absence of a 20-meter-deep trans-shipment port.
- Adani Group’s port acquisitions, aiming for a 500-million-tonne company by 2025, significantly contribute to India’s strategy.
- India addresses China’s acquisitions, emphasizing port developments, as illustrated by the Adani Group.
Red Sea Turmoil and Shipping Impact
The recent drone attack by Houthi militants on an Israel-linked cargo vessel in the Red Sea has reverberated across global shipping. With major cargo shipping companies diverting routes via the Cape of Good Hope, international trade faces significant repercussions. The looming possibility of the Suez Canal closure poses threats to supply chains, contributing to heightened ocean freight costs and increased oil prices.
Vizhinjam Port’s Delayed Operations
India encounters challenges with the operationalization of Vizhinjam, its inaugural deep-water container terminal. The absence of a 20-meter-deep trans-shipment port impedes the efficient handling of large cargo containers and oil tankers. Existing infrastructure limitations and high tariffs deter container ships from choosing Indian ports as docking destinations.
Historical Perspectives on Port Development
The delayed initiation of India’s port development sector underscores the historical lack of foresight in strategic planning by successive governments. The prolonged development of Vizhinjam highlights the absence of a cohesive maritime policy or strategy. The Indian Navy’s longstanding projection for a deep-sea port dates back to the late 1980s.
Adani Group’s Strategic Port Acquisitions
The Adani Group emerges as a key player, having acquired six ports in the last decade, contributing to strategic considerations regarding seaports. With ambitions to become a 500-million-tonne port company by 2025, the group aims to elevate Vizhinjam port’s cargo capacity.
India’s Maritime Challenges Against China
India grapples with maritime challenges posed by China, which has strategically acquired numerous sea bases and ports in pivotal locations. India’s endeavours to secure foreign ports and military bases have encountered less success compared to its Chinese counterpart. Prime Minister Narendra Modi underscores the imperative of expanding ports to handle cargo and oil tankers as a crucial component of India’s economic growth.
Future Plans and Economic Ambitions
In response to the evolving landscape, India announces plans for a substantial trans-shipment hub in the Great Nicobar Island chain to activate the East Coast. With an estimated investment of approximately Rs 41 lakh crore, this mega project aligns with PM Modi’s vision of positioning India as the world’s third-largest economy during his third term, underscoring the pivotal role of port expansion in achieving ambitious economic goals.
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Source: Tribune India
