MEGAPROJECT: Vizhinjam Container Transshipment Terminal | Under Development

[jaleelmalik]

Originally Posted by Rajesh SM

Vizhinjam starts to make fascination among its neighbours and a cause of concern for them as well
See this latest report form a Srilankan newspaper

South Indian ports spending $2.5bn to compete with colombo
By S. Venkat Narayan Our Special Correspondent

August 8: Colombo port, which handles 70 per cent of total transshipment cargo from India, had better watch out! Competition from south Indian ports is round the corner.Ports in south India, both on the west and east coasts, are planning to invest up to $2.5 billion, or about 250 billion Sri Lankan rupees, in the next two to three years in a bid to become a hub for container traffic.
In short, they are gearing up to compete with Colombo.

While ports in Tamil Nadu such as those in Chennai, Ennore, Tuticorin and Colachel are adding new facilities, Kerala’s Vallarpadam and Vizhinjam ports too are not far behind.
Colombo is the dominant port in the region. It handled around 3 million TEUs (twenty-foot equivalent units) last year as against its capacity of 3.7 million TEUs. At the current growth rate, the port will reach its full capacity by 2010.
Indian shipping industry sources feel this is the right time for this country to have a transshipment port of its own. Since the country does not have any hub port like Colombo to accommodate bigger vessels, Indian shippers are incurring additional cost as transshipment fee, which is $150 in Colombo.
India not only can garner a substantial portion of this fee, but also save a lot of money if the ships are handled at the Indian ports. If a container is handled in Chennai, a shipper can save around $400. According to the National Maritime Development Programme of the federal government here, India’s container throughput will more than triple by 2011-12 from 5.5 million TEUs in 2006-07. With 27 container berths (about 300 m long each) available in the country, there is a need to develop huge additional capacity in its ports for handling containers.

Indian ports like Tuticorin, Colachel and Vizhinjam have natural advantages both in terms of depth and proximity to the international routes.

For instance, Colachel, situated in the southernmost tip of Tamil Nadu, has a natural port protected on all sides by rocks and has a depth of around 15 metre. The port appears like a bay and steamers of 10,000-15,000 tonnes can anchor here. Similarly, Vizhinjam is just 200 nautical miles and 10 hours of sailing from Colombo.
Depth and proximity to international sea route are the two most important criteria for transshipment hubs.

While Vizhinjam has a depth of 20 metres, being just 10 nautical miles away from international lines, it is also a better choice. Coupled with other advantages like low tidal variation and little littoral drift, Vizhinjam holds the maximum potential to be the next major transshipment hub.

"The government should seriously consider developing these ports to replace Colombo. The total transshipment cargo is expected to increase by 80 per cent," says an Indian shipping line official.
This apart, size of the container ships is getting bigger. While a container feeder vessel has an average capacity of 1,000 TEUs, the mother vessels can carry over 6,000 TEUs. To handle such vessels, the ports require a draft of over 15 metres, which they already have naturally.

http://www.island.lk/2008/08/09/business1.html

Rajesh,

I am reading this article with "Pride from the Bride of the Red Sea" (Jeddah).

Cheers

[jaleelmalik]

Originally Posted by nishanthnair

Kudos to M.Vijaya Kumar,M.VR,A.K Antony and last not the least Janapaksham

I think everybody forgot the role played by Janapaksham in marketing the project.They really played a huge role in promoting Vizhinjam.

A big cheers to them also

Read the article in Manorama here

Don't Forget Aliyas John and others at NTV.

It is the time.
It is just like an election.
When a party wins, even the media criticising that party would also support the Ministry by the same party.

Trivandrum has won now, atlast. So they media has to support TRV. Otherwise they know, that they will be in the waste box of the time.

Cheerrrrrrrrrrrrrs
Very proudly from the Bride of the Red Sea.

[Rajesh SM]

One more hurdle is there for the smooth traversing of the project- HC Division Bench's verdict on Zoom's appeal which is now under hearing

[jarsonline]

Lets hope for the best

[scorpiogenius]

More details about Vizhinjam in Mathrubhumi Dhanakaryam



2688 acres to be acquired for Industrial Zone, probably with SEZ status.
Breakwater extending 600m into the sea at 2.8 km length.
9 km rail link from Balaramapuram.
2km road link from Nettathani near the port to NH 47 Bypass.


http://www.mathrubhumi.com/2008_cust...1443_2bis1.pdf

[Ajaypp]

Vizhinjam port set to get into big league

It will be developed on a build-operate-transfer model

The port would be a greenfield one with flexibility in design and connectivity.


The Vizhinjam international deepwater seaport and container transhipment terminal inched one more step towards becoming a reality when it received the Defence Ministry’s security clearance last week. There were very few takers in Kerala’s bureaucratic and political landscape for a proposal of such magnitude and international dimension when it was proposed some 15 years ago. The best thing that could have happened to the project proposal over the 15-year hiberna tion period is the rare political consensus that has now evolved through a painful process. Except for a few minor hurdles, including clearances from the Home Ministry, there is nothing that would stop the Vizhinjam project on its predefined trajectory.

Vizhinjam is on the outskirts of Thiruvananthapuram, 16 km away from the City Centre and one km away from the city limits, but located within the Thiruvananthapuram Metropolitan City area. Vizhinjam is a natural port, which is located close to the international ship route.
Nodal agency

Vizhinjam has been designed as a greenfield international deepwater seaport and container transhipment terminal. It earlier ran into trouble when the Central Government denied permission on security grounds to the project proposal because the bid had been won by a Chinese company. In the new round of bidding that followed, the Government selected the consortium led by Lanco Kondapalli Power Pvt. Ltd. and the Malaysian Pembinaan Redzai Sdn Bhd. for developing the port on a build-operate-transfer (BOT) model with an initial concession period of 30 years.

The total cost of the project, to be implemented in three phases, is estimated at Rs. 5,350 core ($1.3 billion), establishing six million TEUs (twenty equivalent units) per annum container handling capacity. The first phase would witness an investment of Rs. 2,390 crore ($580 million) with a capacity of three million TEUs. The State Government would have a 24 per cent stake in the first phase through Vizhinjam International Seaport Ltd. (VISL), a wholly owned government company. VISL would be the nodal agency to facilitate implementation of the project.

The cost of external infrastructure for Phase-I is estimated at Rs. 800 crore. Work on the first phase is expected to start by April 2009 and will be commissioned by 2012.

Advantages

Vizhinjam, according to L. Radhakrishnan, Secretary for Power and Ports and Chief Executive Officer of VISL, has several advantages. It is only ten nautical miles from the major international sea route and the East-West shipping axis. The port would be a greenfield one with flexibility in design and connectivity.

What about the Sethusamudram project? “The Sethu project has not been factored into our projections. If it does become a reality, work on the next stages of the Vizhinjam project would be faster,” according to Mr. Radhakrishnan.

“Vizhinjam has a bright future, thanks to the investment climate in the country. With a huge demand for port facilities, investments should start flowing in soon,” says Jayakumar, former CEO of VISL, who was involved in the project proposal from the beginning.

The State Government proposes to ensure the development of the areas around the port, which could cater to several ancillaries.

The Link.

Coverage is building up on the project as it moves closer to implementation.

[Rajesh SM]

[IMG][/IMG]

[Rajesh SM]

Treatment plant at Vizhinjam
Monday August 18 2008 00:07 IST
ENS

THE Kerala Water Authority’s (KWA) treatment plant for supplying water to the proposed deepwater container transshipment hub at Vizhinjam will be set up at Vizhinjam itself, instead of Vellayani as planned earlier.

The original plan was to set up the plant near the Vellayani lake, from where the water is to be sourced. Now, the plan is to bring the water through pipelines to Vizhinjam, treat it there and provide it to the port and nearby areas.

The Harbour Engineering Department has agreed to hand over 50 cents of land for setting up the treatment plant at Vizhinjam. The KWA is finalising the details regarding the change in plan, sources said.

KWA’s plant will have the capacity to treat three million litres of water a day, sufficient for the port’s use well upto the third phase. The local populace also will benefit from the scheme.

A part of the supply will be meant for the nearby areas. Vizhinjam, one of the most thickly populated areas in the district, is also one which suffers from scarcity of quality drinking water the most.

A consortium led by the Hyderabad-based Lanco Kondappalli Power Pvt Ltd had bagged the contract for constructing the port. After getting the nod from the Defence and External Affairs Ministries, the State Government is now awaiting clearance from the Home Ministry and the Union Cabinet Secretariat to go ahead with the project.

http://www.newindpress.com/NewsItems...puram&Topic=0&

[Rajesh SM]

Lanco to fund equity participation with profit from construction unit
By the end of the first quarter, the company’s EPC division had orders on hand worth Rs12,611 crore

Hyderabad: In an unusual way to mobilize funds, Lanco Infratech Ltd, or LITL, plans to fund its equity participation for India’s first trans-shipment port in Kerala through profit earned from in-house engineering, procurement and construction,or EPC, operations, said a top official.
Revenue sources: Lanco Group chairman L.M. Rao. The company hopes its EPC division will earn up to Rs405 crore from the execution of the Rs2,700 crore first phase of the Kerala port project. (Photo: K Sudheer / Mint)The Hyderabad-based construction firm, whose consortium won a contract to develop the Vizhinjam International Container Transshipment Terminal, obtained the defence ministry’s security clearance early this month.

The company, which earned Rs3,337 crore in revenues and Rs354 crore profit in 2007-08, will be implementing the port project in four phases with an initial investment of Rs2,700 crore. The debt-equity ratio for the project will be roughly 70:30.
“Of the equity component of around Rs810 crore, the Kerala government plans to pick up 25%, our international partner Pembinan Radzai Sdn Bhd of Malaysia will hold 24% in the first phase, and we will have majority holding of 51%,” said Sanjay Divakar Joshi, LITL’s director of infrastructure.
By the final phase of the project, the international partner has the option to raise its equity to up to 26%, while Lanco will continue to hold majority stake of 51%, he said.
To maintain majority holding in the first phase, Lanco Infratech needs to pump in around Rs413 crore as its contribution. “We have the advantage of executing the project through our in-house EPC division. We will be mobilizing a large part of the equity through the EPC profit margins we earn while executing the project,” said Joshi.
According to him, the EPC margins in infrastructure projects will typically be in the range of 10-15%. “We will be executing the entire Rs2,700 crore of first phase project though our in-house EPC division, which will enable us to earn a minimum of around Rs270 crore and a maximum of around Rs405 crore,” he said.
For the first quarter of the current fiscal to June, Lanco’s EPC division reported earnings before interest, tax, depreciation and amortization, or Ebitda, margin of 16.79% at Rs87 crore. Compared with a similar period in the previous fiscal, the company suffered a fall of 228 basis points in Ebidta margins in its EPC division, though the division’s revenues improved two-and-a-half times at Rs518 crore from Rs148 crore in the same period of the previous year.
Analysts attribute the squeeze in the company’s EPC margins largely to the rise in steel prices and higher sub-contracting costs on some of the smaller elements of EPC contracts.
By the end of the first quarter, the company’s EPC division had orders on hand worth Rs12,611 crore. Of this, power projects alone contributed Rs10,802 crore of orders.
“We believe that the company is on track to achieve around Rs3,400 crore of EPC revenues during FY09. Post the sharp recovery from the earthquake-related setback by Dongfang, Lanco is confident of getting support from its equipment supplier, which will help it achieve its targets,” said analysts with the Mumbai-based equity research firm Edelweiss Securities Ltd in a report released on 31 July.
Joshi says the company will meet any balance equity contribution through other sources.
Financial closure of the project is expected to happen in the next two years. Meanwhile, it will prepare a detailed project report for environmental clearance, which takes 12-18 months. As of March, the company had reserves of Rs1,614 crore.
The first phase of the port project will have a capacity of 1.3 million twenty-foot equivalent units, or TEUs, to be ready by 2013, which will reach a capacity of 5.4 million TEUs by the end of final phase.

http://www.livemint.com/2008/08/1800...participa.html

[scorpiogenius]

So this is how such landmark projects will necessitate the infrastructural upliftment of a city. Vizhinjam Seaport Limited has requested for the NH Bypass to be converted into a 6 lane highway.

This is what we have been demanding through this forum for many years. To be honest, a new road connecting the Vizhinjam Terminal circumnavigating the Trivandrum city and suburbs and joining somewhere after Attingal would be the best option to channelize Container Traffic. I dont think its a good idea to allow Container trucks and trailers to rule the NH 47 Bypass, deemed to become the new downtown of Trivandrum.

The excerts from the article:

NH Bypass needs to be converted to 6 lanes
A container truck will need 3.5 m carriageway.
Vizhinjam- Kattakkada- Amboori- Ambasamudram- Tirunelveli road corridor being considered.
Roads in the Pallichal, Vizhinjam and Balaramapuram areas to be developed.

The article also quotes that the Govt expects to sign the agreement with the Consortium by Onam, after the clearance from 2 more Central Govt depts are received.

[nishanthnair]

Shipping ministry is delaying Vizhinjam Project?

[nishanthnair]

More on Vizhinjam

Source-Kerala Kaumudi

[scorpiogenius]

Thats unfortunate... the bloody TN Ministers..velu, balu and co

[Kannan46]

Mallika Sherawat's 'hut' at Vizhinjam near Kovalam beach gets ready
Source: Sify.com

Bollywood's hot and happening actress Mallika Sherawat's dream hut is being built at Vizhinjam near the well-known Kovalam beach in Kerala.

G Shankar, the chief of Habitat Technology Group who is working on the hut, said that in two month's time it would be ready to move in.

"Mallika is expected to arrive here in the next few days and give the final approval to complete her home," said Shankar.

"This is a one hall and one bedroom hut and built with mud and overlooks the majestic Arabian sea near Vizhinjam. I'm sorry I can't reveal the exact location. The roof of the hut is yet to be decided and it would be finalised once she is here. Most probably it would be one with bamboo and tiles," added Shankar.

Reports indicate that the hut is coming up on a small hill top and one has to reach the place on foot. There is no road for cars.

The builders have taken abundant caution with the design because according to the coastal zone regulation rules, no permanent construction should take place within a prescribed distance from the sea.

Cheers!!!

[Anish Ambrose]

Great job

[Rajesh SM]

Yesterday GOK advertised notification for the acquisition of entire 1088 hectares of land for the vizhinjam project and industrial zone. Two page notification came on yesterday's Deshabhimani.

Villages(Area in hectares)

Vizhinjam (346)
Venganoore (273)
Pallichal (152)
Kottukal (172)
Kanjiramkulam (74)
Thirupuram (67)

[Rajesh SM]

Vizhinjam got Home Ministry's clearance
Now only two more clearances pending- shipping ministry and cabinet secretariat

[Rajesh SM]

Vizhinjam project's first phase will be ready on 2012

http://www.lancogroup.com/investor/a...o_August08.pdf

[Mahesh]

Vizhinjam got Home Ministry's clearance
Now only two more clearances pending- shipping ministry and cabinet secretariat

Hope it will get those 2 clearances ASAP...

cheers...

[karunakaranashok]

Originally Posted by Mahesh

Hope it will get those 2 clearances ASAP...

cheers...

Now that security clearances from concerned agencies like Defence and Home are in place, cabinet secretatriat clearance should not be much of a problem

But we have that stumbling block in the form of one Mr Balu whose best plan of action is thru inaction.He will just do nothing and in the process delay things. Our own Hon Minister Mr Vijayakumar said so in so many words recently.
GOK must find a way to navigate and circumvent the blocks in the shipping ministry. Whether we can manage that without losing time is the moot point.
Hope we can do it.