India's Vizhinjam Transhipment Hub Gaining Momentum with MSC

India’s new container transhipment hub at Vizhinjam is rapidly advancing, with Mediterranean Shipping Co. (MSC) emerging as a potential key long-term partner.

The Geneva-based shipping giant has already brought several vessels to Vizhinjam, a deep-water facility that is part of Adani Ports’ growing terminal network. Trial operations at the port began in early July with an initial Maersk call, followed by its largest visit so far, an ad-hoc stop by the 13,988-TEU MSC Deila on August 30.

Other MSC vessels that have docked include the MSC Kayley, MSC Suape VII, and MSC Adu V.

“Vizhinjam International Seaport is steadily becoming a major player in global maritime trade as trial operations continue to gather momentum,” the port authority stated.

The authority further noted: “With a total of five ships from MSC already having berthed at the port, Vizhinjam is well on its way to establishing itself as a key transhipment hub, positioning India on the global shipping map.”

Additionally, they commented: “This wave of arrivals reflects the port’s strategic potential and operational readiness for larger global trade activity.”

Officials from Adani Ports have hinted that more ship calls are expected at Vizhinjam soon.

Given its prime location and deep-water capabilities, Vizhinjam is poised to challenge the market dominance of Sri Lanka’s Colombo Port in handling regional transhipment volumes.

Colombo has recently experienced a decline in volumes, reversing the surge it saw earlier this year from Red Sea-related diversions. Despite this, the Sri Lanka Ports Authority (SLPA) has dismissed reports of a significant drop in transhipment activity, emphasizing the region's collaborative approach.

“The portrayal of regional ports as competitors overlooks the cooperative nature of the industry,” the SLPA remarked, adding that Colombo’s terminal operators welcome the growth of neighboring ports to collectively meet market demands.

SLPA also explained that the current decrease in transhipment volumes should be viewed within the broader context of global supply and demand shifts affecting ports worldwide.

Colombo’s transhipment volumes began to drop in May after a strong performance earlier in the year. Congestion issues caused carriers to divert vessels to Indian ports like Cochin, boosting volumes there.

“Seasonal variations, combined with global economic and social dynamics, have caused a temporary dip in cargo handling, not only at the Port of Colombo but across numerous international ports. This is not a consequence of competition but rather a common and recurring feature of the maritime industry,” SLPA clarified.