Adani Ports Share Price Inches Up On Reports Of Pumping ₹10,000 Cr To Draw Some Of The World's Biggest Ships

Shares of Adani Ports and Special Economic Zone opened higher on Friday as it reportedly plans to invest ₹10,000 crore to improve its Vizhinjam port in Kerala, aiming to attract the world's largest ships.

What Happened: This investment is part of the second phase of the project, expected to be completed by 2028. Adani is trying to draw major container lines like MSC Mediterranean Shipping Co, AP Moller – Maersk and Hapag-Lloyd to use the port, Bloomberg reported, citing sources.

Located near the southern tip of India, Vizhinjam is close to international shipping routes and features deep shipping channels. The port will welcome its first container vessel from Maersk on Friday for a trial run at the 800-meter container berth.

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Wading Into International Waters: Inaugurated in October, Vizhinjam is part of billionaire Gautam Adani's efforts to position the company and the country as a key player in global maritime trade, currently dominated by China. India's harbours have traditionally been too shallow for the largest container ships, which have instead docked at ports like Colombo, Dubai, and Singapore.

The investment will extend the existing berth and the port's breakwater, a rock barrier protecting the harbour from waves. Adani Ports plans to invest ₹6,000 crore annually to expand capacity, according to Chief Executive Director Karan Adani.

Transhipment involves transferring cargo from a smaller vessel to a larger one en route to its final destination. The Vizhinjam terminal will offer bunkering facilities for fuelling ships, additional cranes to boost capacity and a cruise terminal for large luxury liners.

Vizhinjam's proximity to international shipping routes, accounting for 30% of global cargo traffic, and its natural 24-meter-deep channel make it an ideal hub for the world's largest ships.

Price Action: Adani Ports’ share price edged up 0.34% to ₹1,488.85 in early trade on Friday.

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