News / Feeder operators circle, eyeing the prospect of mainline calls at Vizhinjam

Photo: Vizhinjam port

With MSC to begin weekly calls at India’s new transhipment hub of Vizhinjam, feeder operators have begun talks with operator Adani to sign on for coastal connectivity operations.

As reported by The Loadstar this week, MSC has published an enhanced east-west network schedule and will begin offering weekly mainline calls out of Vizhinjam, India’s high-stakes container transhipment project, from February.

Vizhinjam in southern India is under a long-term concession with Adani Group, which continues to expand its port interests.

The new network shows MSC extending its Jade and Dragon loops, covering Asia-Europe trades, to Vizhinjam, redefining its hub interests in the region.

The move follows a series of pilot calls by the carrier – a development observers believe has the potential for Vizhinjam to attract subcontinental transhipment market share from Sri Lanka’s Colombo.

Adani Ports and MSC already have terminal partnerships in India – at Mundra on the west coast and Ennore on the east – and speculation has been rife that the liner giant would extend that collaboration to Vizhinjam.

With Vizhinjam operations eyeing a 1m teu capacity in the first phase, regular mainline services would provide an opportunity for feeder lines to run services connecting other ports in the subcontinent area.

Although MSC usually uses its own feeder tonnage, Mumbai-based Sima Marine is one operator showing firm interest and is believed to be close to setting up a network at Vizhinjam, sources say.

“We have received interest calls from many coastal shipping operators,” a source at Adani Group told The Loadstar. “Coastal networks are critical to transhipment cargo flows.”

Vizhinjam has had a powerful start, handling some 100,000 teu in the first four months of trial ship runs last month, according to available data. Sensing the potential, Phase 2 development has been advanced to 2028 and will push annual capacity to some 4m teu on completion.

Maersk was the first mainline carrier to trial a call at Vizhinjam – by the 8,714 teu San Fernando on 11 July, which saw some 6,900 teu exchanged.

But despite expectations, the Danish carrier is understood to be waiting for operations at Vizhinjam to “stabilise” after the terminal officially goes live next month, before making regular calls.

“The trial run made by the San Fernando wasn’t up to the mark, as things were just beginning to take shape then,” said a Maersk source. “Operations might have improved and streamlined by now, though.”

And the source was non-committal when asked if Vizhinjam could become a port of call for services run by the upcoming Gemini Cooperation and/or its secondary networks.

Meanwhile, Adani is rapidly consolidating its Indian terminal presence with its latest concession at Kolkata Port, a five-year contract for two berths scheduled to begin next month.

Despite the recent controversy sparked by an indictment by US prosecutors, the diversified conglomerate claims it continues to enjoy strong backing from its investor and partner networks, including Abu Dhabi’s International Holding Co. Adani also claims its container terminal development at Colombo – nearing completion – continues to be supported by the port authority.

And the latest outlook report by market research firm CRISIL today adds to those positive claims. The agency said:  “Adani Group has sufficient liquidity and operational cash flows to meet debt obligation and committed capex plans over the medium term.”