Shipping Corporation of India Ltd (SCI) is planning to buy stake in Vizhinjam International Seaport Ltd (VISL) for its deepwater seaport project Vizhinjam International Container Transshipment Terminal (VICTT).

VISL is an SPV of the Kerala government to attract private sector participation for the port's development and to set up the external infrastructure.

VISL on behalf of state government will provide the external support infrastructure like road, rail linkages, water and power supply required for the construction and operations of the port.

Transaction Reference: LiveMint

VICTT is a Rs.5,350 Cr deepwater seaport and container transshipment terminal at Vizhinjam, near Thiruvananthapuram is supposed to be 150 metres in width. The port would have two breakwaters of 1.5 km and 6 km each with harbour basin and wharfs. There would be about 30 berths, most of which would be capable of handling Mother Vessels.

The port will be developed on a landlord port-based model against the original plan of private and state enterprises making the complete investment.

Under the landlord port model, the government will invest in the superstructure for port and then invite companies to build and operate the terminal and transfer the infrastructure after 28 years. The superstructure includes infrastructure such as breakwaters, reclamation and quay (berth) walls.

The project is proposed to be implemented in three phases with a total capacity of 2.8 Mn TEUs (twenty-foot equivalent units).

First phase will involve mainly the construction of breakwater of 3.3 km in length and reclamation of land of up to 80 hectares with provision for further expansion for potential proposals related to cruise or ship building-repair.

The port will cater to main line vessels with capacity of up to 12,500 TEUs (twenty-foot equivalent units).

The Kerala government has already given “in-principle approval” to SCI to invest in superstructure and remain as a part-owner.

International Finance Corporation (IFC) is the project advisor to the Kerala government.

SCI is in the process of raising Rs.1,300 Cr through a follow-on public offer in which the majority shareholder, the government of India, will sell a 10% stake and issue another 10% fresh equity.

Another terminal operated in Kochi is DP World Ltd.

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