News and information about the Rs 10,000 Crore Vizhinjam Deep Water and Container Transshipment Terminal project being developed on the southern outskirts of Trivandrum.
First, a quick recap of the project.
Lanco-led group bags Rs 8,000-cr project for Vizhinjam port
The consortium led by Hyderabad-based Lanco Kondapalli Power Pvt Ltd (LKPPL) has anchored the first phase contract for the Rs 5,348-crore Vizhinjam Deepwater Container Transhipment Terminal Project, India's first motherport. The first phase is for Rs 2,300-crore infrastructure development.
One may recall that Vizhinjam port project was thrown to retendering tables because Cabinet committee on security had vetoed clearance to the two Chinese partners in consortium-led by Mumbai-based Zoom Developers. This time the qualifying consortium led by the Indian firms Lanco Kondapalli Power and Lanco Infratech has a Malaysian partner Pembinan Redzai group in tow.
The qualifying group had quoted Rs 35 crore less in debt support, state port minister M Vijayakumar said. The Malaysian partner will also require security nod from the Cabinet. The bid selection committee chaired by Kerala chief secretary recommended the consortium headed by Lanco Power. The other consortia were DS Constructions, in association with Apollo Enterprises Ltd and KGL Ports International, Dubai; Nagarjuna Construction Company (Hyderabad), Maytas and OPM (Singapore); Videocon Industries Ltd (Mumbai), Gammon India, Gammon Infra and Sical Logistics; Lanco Infratech (Hyderabad), Lanco Power and Pembinan Redzai Sdn Bdh (Malaysia); and Zoom Developers (Mumbai), Portia Management Services and UK’s Peter Fraenkael and Partners.
Five consortia had been in the last round of the bidding race. The Phase I of the project is envisaged to be complete in three years, the minister said. Work on the first phase is envisaged to be underway within six months. As soon as the state cabinet clears the choice, the procedures will be set in motion for a special purpose vehicle for project implementation, he said.
About 40 companies had picked up RFQ papers for the Phase I of the project. Some of them include Denmark-based Maersk, Australia-based Alberg Ports, Japan-based Nissin Corporation, UK-based Beckett Rankine, Dubai Ports World, Netherlands-based Cyan Holdings BV, US-based Obocon Inc, Kuwait-based KGL Transport, Indonesia-based Astra International and Malaysia-based Pembinan Redzai group.
The Indian firms who took the plunge, in the early rounds, include RIL, ADAG, SCI, Gammon India, Mudra Port and Special Economic Zone, Ashok Leyland Project Services, Emaar MGF Land, Essar Constructions, Soma Enterprises, Zoom Developers and JM Baxi Group.
According to the developers, the ultimate capacity of the port will be about 6.5 million TEUs. This is about 25% of the capacity of the Port of Singapore, the world's busiest container port.
Vizhinjam has a number of inherent advantages which are strategic and nearly unbeatable in nature:
- A draft of 18 m, just 1 kilometer from the shore and which can be increased upto 25 m with minimal dredging.
- Located on the Southern tip of the sub-continent, it is just 10-12 nautical miles from the busy Persian Gulf - Malacca shipping lanes which carry almost a third of the world shipping traffic.
- Vizhinjam has minimal littoral drift which eliminates the need for major annual dredging, unlike estuarine ports like Cochin.
- It is located within the suburbs of a major city.
- The NH-47 passes just 2 Kms away from the site and the main rail line only 8 Kms away.
Vizhinjam is currently the only port in India capable of achieving a draught of over 18 m without major capital dredging. This makes it the only port in India capable of handling giant ships like today's super-container ships and supertankers.
The port will look to attract the largest container-ships of today for transshipment, like the 12,000 TEU capacity Emma Maersk, which cannot dock at any other Indian port.
As envisaged in the above concept view, Vizhinjam will have the following features:
- Breakwaters up to 6 Km long
- Six berths for motherships
- Up to ten berths for feeder vessels
- 400 acres of container yards and other areas, reclaimed from the sea
- Around 2 Sq.km of basin area
- A basin draft of 18-24 m
- Bunkering facilities
- Dedicated 110 KV sub-station and water treatment plant
- Elevated road and rail connections
Thiruvananthapuram, Aug 5 (IANS) With the defence ministry giving its clearance for the proposed Rs.53.48 billion port at Vizhinjam near the tourist destination of Kovalam, a major step forward has been taken for a project that has remained on paper for more than a decade. The clearance, however, has come with a rider: that Indian Navy ships be allowed to berth at the port whenever required and that an officer of the Kochi-based Southern Naval Command be inducted onto the port’s board to look after security-related issues.
The proposal will now have to be cleared by the Intelligence Bureau and the Research and Analysis Wing but Kerala Ports Minister M. Vijayakumar Tuesday expressed confidence this would not take time.
“I personally called up (Defence Minister A.K.) Antony and thanked him for his efforts. Now the Intelligence Bureau and the Research and Analysis Wing have to give their security clearance too,” Vijaykumar told reporters here.
“With the defence ministry clearance obtained, we are confident the security clearance will only be a formality. Once we get that, then we will sign an MoU with the consortium that has been selected through a global tender for commencing work,” the minister added.
The government May 23 gave the nod to a consortium headed by Hyderabad-based Lanco Kondapalli Power Private Ltd, Malaysia-based Pembinaan Redzai Sdn. Bhd. and Lanco Infrastructure Limited to implement the project in two phases.
This is the second time the exercise to build the Vizhinjam port is being undertaken. During the previous Oommen Chandy government (2004-06) a consortium of two Chinese and a Mumbai firm had been selected through a global tender.
However, the central government in 2006 declined to approve the project on grounds of security as the Chinese companies had business interests in Pakistani ports.
A major advantage of Vizhinjam port will be that with a natural depth of 24 metres - among the deepest in the world - it would not require any dredging. Its other advantage is that it lies very close to a busy international shipping route.
Once fully operational, the port would create 5,000 direct and 150,000 indirect jobs.
Wow...looks like you folks have started pitching in even before I finished the first post. Great!
I omitted "Megaproject" accidentally, will request the Mods to add it to the title.
Here are some key news reports on Vizhinjam to give perspective to the thread:
Kerala Govt's dream project — Making Vizhinjam a world-class hub
N. K. Kurup
DOES Vizhinjam port have the potential to become an international transhipment hub? The Kerala Government believes so and is quite optimistic about its dream project: Developing Vizhinjam into a world-class port.
It has commissioned a feasibility study, expected to be ready by September, and is getting ready for an international road-show. If all goes well, a global tender will be floated early next year to build what is called a " deep-water international container terminal" on a BOT basis.
This is the right time for India to create a mega container transhipment terminal, and Vizhinjam seems the best choice.
AP Moller Maersk Group based in Denmark is the largest container shipping line in the world. Its giant container ship, Emma Maersk, entered service in mid-September. This vessel, which can carry 22 rows of boxes across its decks, will be deployed on Maersk's premier Asia-Europe service and its maiden voyage will cover the main European ports before transiting the Suez Canal and then heading to Singapore, Kobe, Nagoya, Yokohama, Yantian and finally Hong Kong. The ship will not be able to call at any of the South Asian ports.
The new transhipment terminal at Vallarpadam (near Kochi), when it becomes fully operational by about 2010, is unlikely to handle container ships above 6,000 TEU, drawing a draught of more than 14.5m. This is the most opportune time for India to create a mega container transhipment terminal, not only for the sub-continent but also for South Asia to accommodate very large container ships in the range of 6,000-15,000 TEUs, as a competitor to Colombo in the South, Singapore in the east and Dubai and Salalah in the west. In this context, development of Vizhinjam port near Thiruvananthapuram assumes great significance. Vizhinjam, which offers a depth of about 20-22 m and is favourably located close to the East-West sea route, could be an excellent choice for a mega container transhipment terminal.
Chinese consortium to partner Kerala in Vizhinjam port
Posted online: Thursday , January 19, 2006 at 01:39 hrs
Updated On: Thursday , January 19, 2006 at 01:39 hrs
A three-firm Chinese consortium - with Mumbai-based partner Zoom Developers in tow - has been picked by Kerala Government as partner for the construction of Rs 4,360-crore Vizhinjam port, slated to be world's deepest port. Kerala Cabinet, which met here on Wednesday, approved the consortium's tender.
However, the Central Govt. failed to clear the consortium citing security risks if Vizhinjam is handed over to Chinese developers.
Vizhinjam: State may go in for fresh bids
T. Nandakumar
If Indo-Chinese consortium fails to get clearance
Thiruvananthapuram: The Kerala Government is likely to invite fresh bids for the proposed international container transhipment terminal at Vizhinjam if the Indo-Chinese consortium that won the deal fails to gain security clearance from the Centre.
Minister for Ports M. Vijayakumar told The Hindu that the Government would have to exercise this option if the current bid was not cleared by the Cabinet Committee on Security.
The Hindu
The State Govt. canceled the tender eventually and invited fresh bids. The first step was a global investors' meet.
Big players at global investors' meet on Vizhinjam
Special Correspondent
The response to the meet is quite encouraging, says Achuthanandan
THIRUVANANTHAPURAM: Major foreign and Indian entities are among 43 companies that attended the Global Investors' Meet called by the State Government here on Tuesday to showcase the Deepwater Container Transhipment Terminal at Vizhinjam, preparatory to going in for global tenders for the project.
Foreign companies include Maersk, Denmark; Alberg Ports, Australia; NISSIN Corporation, Japan; Beckett Rankine, the United Kingdom; Dubai Ports World, Dubai; Cyan Holdings BV, the Netherlands and FIDATO, Ranhill Group of Companies, Malaysia. The meet was also attended by a consortium comprising Obocon Inc., the U.S.A; KGL Transport, Kuwait; Astra international, Indonesia and Unity Infrastructure, Mumbai.
Thiruvananthapuram, Jan. 31 In response to the global tender floated for identifying the promoter for the proposed international container trans-shipment terminal at Vizhinjam, near here, five consortia have submitted bids as the deadline expired on Thursday.
The Hindu Business Line
Once the bid was awarded to the Lanco-led consortium, there was a legal challenge by Zoom Developers which was quashed by the Kerala High Court.
HC quashes plea against Vizhinjam project contract
Our Bureau
Kochi July 3
The Kerala High Court on Thursday dismissed a writ petition filed by Zoom Developers against the State Government and Vizhinjam International Seaport Ltd for disqualifying the proposal submitted by the consortium for construction of the Vizhinjam Deepwater Seaport and International Transhipment Container Terminal.
Watch Asianet News on Vizhinjam receiving Security clearance. I was told that Indiavision reported the news most comprehensively. Asianet reported it as the main news item.
Watch Asianet News on Vizhinjam receiving Security clearance. I was told that Indiavision reported the news most comprehensively. Asianet reported it as the main news item.
THIRUVANANTHAPURAM: Vizhinjam, the nondescript fishing village south of the city, has moved one step closer to becoming a major port-of-call for the global container transshipment business with the Defence Ministry okaying the multi-crore container transshipment terminal project.
Defence has cleared the project on two conditions, that naval vessels can berth at the port and that a naval representative should be on the Vizhinjam port board. After awarding the contract to a consortium led by Hyderabad-based Lanco Kondappalli Power Pvt Ltd in May, the State Government had submitted the proposal for Central clearance in July.
“Clearance from the Union Home Ministry, External Affairs Ministry and the Union Cabinet Secretariat are pending,’’ Kerala Ports Secretary L. Radhakrishnan, who is also CEO of Vizhinjam International Seaport Ltd, told Express. RITES, entrusted with studying the alignments for the rail and road network, has submitted its report, Radhakrishnan said. However, he did not disclose the extent of land acquisition needed for the rail and road connectivity.
Sixteen kilometres south of Thiruvananthapuram city, Vizhinjam, once the domain of the Ay kings, is the proposed site for one of Asia’s largest deepwater seaports and container transshipment terminals.
On May 23 this year, a consortium of Hyderabad-based Lanco Kondappalli Power Pvt Ltd, Lanco Infratech and Pembinaan Redzai Sdg, Malaysia, bagged the contract for setting up the Rs 5,348-crore, greenfield port on BOT basis. The combine pipped heavyweights like Gammon India and Videocon to come out on top.
“We’re having a boom time for transshipment business in India and Kerala is right on the path. By providing road and rail connectivity to Vizhinjam, we can also ensure faster hinterland movement of cargo than ever before,’’ Radhakrishnan said.
Prising open a window of opportunity, Vizhinjam hopes to rip off a juicy chunk from the container transshipment pie nourishing the Big Three - the ports of Singapore, Colombo and Salalah in Oman.
Vizhinjam has the necessary vital stats to make it big. The site has a natural draft of 16 metres at berth (this will be increased to 18.7 in the final phase). It is also close - just ten nautical miles - to the east-west shipping axis linking Europe and the Persian Gulf to the Far East.
In the event of the Sethusamudram Canal being commissioned, a whole new world of possibilities will open for Vizhinjam, as ships won’t have to circumnavigate Sri Lanka anymore.
Planned in three phases, the Vizhinjam transshipment hub is expected to become operational by 2011, when the initial stages of phase one will be completed. The terminal will be able to berth post-Panamax to Malacca-max class vessels (in layman’s terms, some of the biggest man-made leviathans plying earth’s oceans). To understand why Vizhinjam counts, a quick look-see at shipping stats can be illuminating. There’s the steady growth in container traffic in Indian ports for starters, and the fact that shippers have had to rely on far-off ports for transshipment. (For more, see infograph) The possibility of employment generation also gives Vizhinjam an added glow. The project will provide direct employment to 5,000 people and indirect employment to another 1.5 lakh people, according to Kerala Chief Minister V.S. Achuthanandan.
The website of lanco says 1st phase vizhinjam project to be completed only in 5 years against 3 years mentioned in many news reports. Which one is true?
The website of lanco says 1st phase vizhinjam project to be completed only in 5 years against 3 years mentioned in many news reports. Which one is true?
Kerala to acquire 1,088 hectare land for Vizhinjam Port: CM
Kerala Chief Minister V S Achuthanandan today said the government would expedite the process of acquiring 1,088 hectare land for developing infrastructure facilities for the proposed Vizhinjam Deep sea Transshipment Terminal , near here.
Briefing reporters after a Cabinet meeting, he said the land would be used for developing infrastructure facilities like Railways, roads, warehouses, parking area and other basic facilities. Mr Achuthanandan said the Defence Ministry had given the green signal for the project and expressed the hope that the construction of the project would start soon after getting the clearance from the Union Home Department. On the pre-condition put forward by the Defence Department for giving its approval, he said the terms would be discussed by the Cabinet.
Since the project was for the development of the whole country, the Centre would extend all possible help for materialising the project, he said.
The Defence Ministry had given its nod for the project yesterday on the conditions the Naval vessels should be berthed at the port and a Naval representative be on the Vizhinjam Port Board.
Kerala Chief Minister V S Achuthanandan today said the government would expedite the process of acquiring 1,088 hectare land for developing infrastructure facilities for the proposed Vizhinjam Deep sea Transshipment Terminal.
Breaking a seven-year jinx, Lanco Kondapalli's tender for Rs 8,000-crore Vizhinjam International Deep Seaport in Kerala has got a quick thumbs up from the ministry of defence on Tuesday. And where the Chinese consortium partners were turned down, the Malaysian partner Pembinaan Redzai Sdn Bdh in the new consortium has been let in with two caveats.
One, ships of Indian Navy should be given full access. Two, a nominee of Southern Naval Command should be on Vizhinjam Port Trust's board.
"Defence nod is a turning point in the project's fortunes, but two more clearances - one from CBI and another from RAW - are needed to get the act together," Kerala ports minister M Vijayakumar told FE.
The Vizhinjam Seaport calendar chalks out the first phase, costing Rs 5426 crore, to be through by 2011. The Kerala government enjoys 24% stakes in the 30-years BoT project.
Vizhinjam, near Thiruvananthapuram, is not only envisaged as India's first mother port, but also as the country's biggest port with a handling capacity of 4.1 million TEU per annum. A mother port is one which faciliates berthing of big vessels (which are the current shipping trend) to sail in with a depth of at least 14-15 meter. Unlike other ports that demand recurring costs in artificial dredging, Vizhinjam has a natural average depth of 25 meter. The way it is planned, the new port could cater to 12,000 big vessels at one go.
The second big advantage is that Vizhinjam lies in the International sea route. About 61% of Indian containers are transshipped through the ports of Colombo, Singapore and Salalah. This means that Indian exporters pay extra costs (freight costs at 11.4% of cost, insurance and freight-compared to the world average of 6.1%). A recent study by Container Shipment Economics say that Vizhinjam port could trim these costs. IL&FS and Hauer Associates, who associated in this study, estimate that as much as 1.35-1.60 million TEUs are likely to be diverted through Vizhinjam by 2016-17.
Union defence minister AK Antony, as former Kerala Chief Minister, is familiar with the Vizhinjam port's clearance blues. All the same, with Chiefs of Army, Navy and Air Force unanimously frowning at the Chinese partners of the consortium who got the tender, he was unwilling to give it the goahead.
Another 600 acres would be reclaimed from the sea
So Total Area required would be around 3300 acres
VizhinjamICTT is gonna be the Mother Of All Indian Ports!!!!!!!!
Another 600 acres would be reclaimed from the sea
So Total Area required would be around 3300 acres
VizhinjamICTT is gonna be the Mother Of All Indian Ports!!!!!!!!
Jomy, Not only India's mother port, but India's Shangai is in the making. Today's manorama reported that many industrial, logistical and trade powerhouses had already bought land in and around Vizhinjam zone. Gok also got evidences that some automobile giants are also looking at vizhinjam.
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