Vizhinjam port challenges Colombo’s dominance in transshipment.

Vizhinjam Port, with its strategic location and deep draft, is emerging as a potential competitor to Colombo Port in the transshipment sector. Approved in April 2024 to operate as India’s first transshipment port, Vizhinjam is equipped with advanced automation and infrastructure to handle Megamax container ships. In its initial phase, it will handle one million TEUs, with plans for future expansion to 6.2 million TEUs. This development addresses a key gap in India’s port infrastructure, aiming to challenge Colombo’s dominance in the region.

While Colombo Port remains the leading transshipment hub in the Indian Ocean due to its position along key global shipping routes, recent performance indicators suggest a slight decline in its transshipment volumes and connectivity. These fluctuations are partly attributed to global economic factors and seasonal variations, which have impacted ports worldwide. However, data from 2024 indicates that both transshipment volumes and connectivity at Colombo Port have resumed an upward trend, demonstrating its resilience.

In contrast, Vizhinjam Port has the potential to capitalize on emerging shipping routes, particularly from the Southeast Asia region. Growing interest from international shipping lines, drawn by delays at Colombo Port, further strengthens Vizhinjam’s prospects. While Colombo Port remains a dominant player, Vizhinjam’s rapid development could shift regional transshipment dynamics, reducing Colombo’s market share in the future. The competition will depend on Vizhinjam’s ability to scale operations quickly and Colombo’s response to these competitive pressures.

source: Maritime Gateway