New Indian container facility could threaten Sri Lankan port
ECONOMYNEXT – Adani Group, the largest private port operator in India, plans to build a port in the southern state of Kerala that could divert container transhipment cargo from Colombo port, according to news reports.
Adani Ports and Special Economic Zone (APSEZ) earlier this week signed an agreement with the Kerala government to build and operate the Vizhinjam Port.
The proposed port will be located about 16 km south of Thiruvananthapuram, capital of Kerala, placing it close to the international shipping route.
Adani Group officials have told Indian media that the deepwater container port is aimed at attracting some of the Indian containerised cargo that now go to Colombo for transhipment.
India accounts for about two-thirds of the container cargo in Colombo, south Asia’s transhipment hub. (Colombo/August 20 2015)