Policy Shift to Steal Colombo Trade

[tested]

Yes i will still stick to my argument that Colombo, Singapore and Al Jabli (Dubai) are unmatched when it comes to logistics in the region and will be so for a foreseeable future.. Mere port infrastructure does get you traffic nor volume, Shippers need efficiency and every minute means money.. As in this article Indian shipping authoroties themselves admit Indian ports will find it very difficult to challenge trade volumes of Colombo and Singapore but will be more of a treat to Bangladeshi and Myanmar ports

The idea here is that even if Indian ports are unable to compete with Colombo or Singapore for international carriers, even if they are successful in getting Indian freight operations back to them(Indian ports) instead of Colombo, then it would be a big gain for them.

In that sense, Vizhingam port, awarded to Adani (established and made Mundra port the busiest private port in India in Gujarat) coupled with supportive Government policies(like cabotage, etc) will in all likelyhood will bring back the Indian business from Colombo. That in itself is massive money.

 

[kadamba-warrior]

The idea here is that even if Indian ports are unable to compete with Colombo or Singapore for international carriers, even if they are successful in getting Indian freight operations back to them(Indian ports) instead of Colombo, then it would be a big gain for them.

In that sense, Vizhingam port, awarded to Adani (established and made Mundra port the busiest private port in India in Gujarat) coupled with supportive Government policies(like cabotage, etc) will in all likelyhood will bring back the Indian business from Colombo. That in itself is massive money.

Exactly!

I don't care about the bluster from MD of the company in the OP or anybody who says India can right away compete for Colombo/S'pore's business, but as a late starter the best thing India can hope do is just to gain at least Indian business back.

In any case, Indian ports will never be competitive unless the Palk straits are dredged deep enough for movement of bigger ships. But then, the religious nutbags will never allow that.

Trans-shipment and competition with Colombo can wait, but I would be happy if Indian ports just start handling traffic bound for and out of India. And considering the size of India and volume of sea trade, that would be no mean feat either.

 

[Godman]

It will not be easy for Vizhinjam anyway

 

[tested]

It will not be easy for Vizhinjam anyway

You're right.
And no one believes it would be easy, but the fact that one of India's largest conglomerates is investing its money in Vizhinjam does show that GoI/Adani are putting their money where their mouth is - that Adani would at least be able to bring a good part of Indian business back to its port from Colombo.

 

[Josef K]

that is were vizhinjam port comes in.

You're right.
And no one believes it would be easy, but the fact that one of India's largest conglomerates is investing its money in Vizhinjam does show that GoI/Adani are putting their money where their mouth is - that Adani would at least be able to bring a good part of Indian business back to its port from Colombo.

We could have had one in Colachel, but the stupid politicians of my state screwed it up. Still there is noise about Colachel port. 'Study on Colachel Port to be Over in 2 Weeks' -The New Indian Express

If that ever materializes both the ports will give a huge competition to most others in the region.

 

[Gibbs]

The idea here is that even if Indian ports are unable to compete with Colombo or Singapore for international carriers, even if they are successful in getting Indian freight operations back to them(Indian ports) instead of Colombo, then it would be a big gain for them.

In that sense, Vizhingam port, awarded to Adani (established and made Mundra port the busiest private port in India in Gujarat) coupled with supportive Government policies(like cabotage, etc) will in all likelyhood will bring back the Indian business from Colombo. That in itself is massive money.

Exactly!

I don't care about the bluster from MD of the company in the OP or anybody who says India can right away compete for Colombo/S'pore's business, but as a late starter the best thing India can hope do is just to gain at least Indian business back.

In any case, Indian ports will never be competitive unless the Palk straits are dredged deep enough for movement of bigger ships. But then, the religious nutbags will never allow that.

Trans-shipment and competition with Colombo can wait, but I would be happy if Indian ports just start handling traffic bound for and out of India. And considering the size of India and volume of sea trade, that would be no mean feat either.

You're right.
And no one believes it would be easy, but the fact that one of India's largest conglomerates is investing its money in Vizhinjam does show that GoI/Adani are putting their money where their mouth is - that Adani would at least be able to bring a good part of Indian business back to its port from Colombo.

So as we're to believe Vizhinjam is quite a number of years away from full fruition... Yes it has massive potential as you well mentioned because large Indian conglomerates also back it.

My question is ? What extra incentive would it give even to Indian importers/Exporters over Singapore and Colombo ? In terms of logistics, red tape and efficiency ? Remember if we say Vizhijam will be done in 5 years time(Most optimistic) Colombo would be good six years in to operation with it's mega terminals that's already inline.. Remember 21st century business time matters more not location necessarily.. Given logistical advantages it will be actually cheaper for Indian trade to use Colombo or Hambantota than Indian ports, Unless something drastic changes

By the way almost all Indian transshipment go through Hambantota port further down south NOT Colombo.. Hambantota is in operation on it's first phase, It has three more phases to go in order to be one of the largest transshipent and bunkering ports in the world.. I'd say Hambantota would be in full capacity when Vizhijam come in to operation, So as far as the battle for Indian trade goes it will be between Hambantota and Vizhijam not Colombo

 

[tested]

So as we're to believe Vizhinjam is quite a number of years away from full fruition... Yes it has massive potential as you well mentioned because large Indian conglomerates also back it.

My question is ? What extra incentive would it give even to Indian importers/Exporters over Singapore and Colombo ? In terms of logistics, red tape and efficiency ? Remember if we say Vizhijam will be done in 5 years time(Most optimistic) Colombo would be good six years in to operation with it's mega terminals that's already inline.. Remember 21st century business time matters more not location necessarily.. Given logistical advantages it will be actually cheaper for Indian trade to use Colombo or Hambantota than Indian ports, Unless something drastic changes

By the way almost all Indian transshipment go through Hambantota port further down south NOT Colombo.. Hambantota is in operation on it's first phase, It has three more phases to go in order to be one of the largest transshipent and bunkering ports in the world.. I'd say Hambantota would be in full capacity when Vizhijam come in to operation, So as far as the battle for Indian trade goes it will be between Hambantota and Vizhijam not Colombo

You ask a good question, but the simple answer here is that I don't know the answer. I have not worked/working on this project from either GoI or Adani.

What I do know is that Adani is being given a free hand in the port as the port is being handed over in a different model, after which GoI/state Govt will have no say in its operations or pricing.... and GoI has committed to drastically cut down red tape and bring the entire operation online/paperless.

The committed investment already is over $1.1 billion just for the phase -1 of the project and separately GoI intends to bring everything from a highway to a national railhead directly to the port for fast cargo operations.

Adani is one of the shrewdest enterprises in India and their record in port development & management is probably the best there is in India. They built Mundra port from ground up and ran it so well that it has beaten all Govt ports (which are far older, established and with zillion times more businesses located around them).

Personally I believe unless someone is willing to walk the talk, there is no point in discussing pros and cons as those are mere castles in the air. In this case, neither Adani nor GoI would not be willing to invest massive amounts of money without doing their fair bit of homework.

Also an important fact here is that considering Adani is very very pro-BJP and one that the Opposition/Congress has targeted time and again in Parliament, is going ahead to invest in a Congress ruled state(Kerala) should give you an idea that the returns that Adani sees/calculates must be well worth the effort he is making.