VIZHINJAM PORT - GEOGRAPHY
News: Tension
grips Vizhinjam as protesters, port supporters clash; AVPL to stop work
What's in the news?
● Protesters,
led by the Thiruvananthapuram
archdiocese of the Catholic Church (Latin rites), which spearheads the protest
against the Vizhinjam International Seaport project, on November 27 blocked the
way of the vehicles laden with construction materials to the project site and
clashed with pro-port activists in the area.
● The
protesters had earlier assured the High Court that they would not block the
entry of heavy vehicles carrying materials to the project site.
Vizhinjam Port:
● The
Vizhinjam International Transhipment Deepwater
Multipurpose Seaport is an ambitious project taken up by the Government of Kerala.
● It
is designed primarily to cater container trans-shipment besides multi-purpose
and break bulk cargo.
● The port is currently being developed in a landlord model with a Public Private Partnership component on a design, build, finance, operate and transfer (“DBFOT”) basis.
What is the landlord model?
● In
the landlord port model, the publicly
governed port authority acts as a regulatory body and as landlord while
private companies carry out port operations - mainly cargo-handling activities.
● Here,
the port authority maintains ownership
of the port while the infrastructure
is leased to private firms that provide and maintain their own
superstructure and install their own equipment to handle cargo.
● In
return, the landlord port gets a share of the revenue from the private entity.
● The
role of the landlord port authority would be to carry out all public sector services
and operations such as the award of bids for cargo terminals and dredging.
Significance of the port:
● The
port will be equipped with 30 berths and able to accommodate enormous
"megamax" container ships.
● The
ultramodern port, which is near important international shipping lanes, would
bolster India's economy.
● The
port is anticipated to compete for a portion of the trans-shipment business
with Colombo, Singapore, and Dubai.
Issues faced by ports in India:
1. High ship turnaround time: India's
ports experience high ship turnaround time. For instance, the typical ship
turnaround time at Singapore is under a day. However, it takes more than two
days in India.
2. Container traffic and congestion:
A lack of handling equipment, and ineffective operations all contribute to port
congestion, which is a serious issue. For instance, the port of Nhava Sheva.
3. Mixture of suboptimal transport modes:
Transport modal mix is not optimum since the necessary infrastructure for
evacuation from large and minor ports is lacking.
4. Limited Hinterland Linkages:
Due to limited hinterland connectivity by rail, road, motorways, coastal
shipping, and inland waterways, there is inefficiency. As a result, moving
goods and paying for transportation become more expensive.
5. Lengthy Custom Clearance Procedure:
Inspections and scrutiny continue to be drawn out for cargo and other shipping
operations, despite the fact that India's customs processes are quickly growing
paperless and becoming digital.
6. Inadequate infrastructural and technological
problems:
● This
involves lack of adequate depth, suitable length, berth count, and berthing
facilities for proper berthing of the vessels at the major as well as on
non-major ports.
● The
majority of non-major ports lack the necessary material handling tools that
would enable a speedy turnaround.
● Absence
of huge volume handling equipment, lack of suitable facilities, IT systems, and
navigational aids.
7. Regulatory issues:
● Major
and minor ports are governed by different authorities. The regulatory system is
also strict.
● Foreign-flagged
ships are not permitted to transport cargo between Indian ports because such
ports are still reserved for domestic shippers.
● Purchasing
land and obtaining environmental approvals.
8. Problems with the PPP Model:
● Private
operators are typically subject to stringent restrictions under the majority of
port PPPs, usually in the form of the kinds of goods they are permitted to
handle.
● Up
until recently, there were still issues with tariff control and the lack of a
dispute settlement process.
Other issues with Vizhinjam port:
● Vizhinjam
is financially not viable even with
a significant financial participation of the Kerala government.
● The
container trans-shipment terminal at Vizhinjam has high global competition.
● Colombo
which is situated just 202 nautical miles from Vizhinjam is now the 25th
largest container port in the world.
● By
the time Vizhinjam becomes operational, the Colombo port will be more developed because of the Chinese
investments.
● Vizhinjam
did not attract port investors mainly because of the heavy risks involved in
the trans-shipment business.