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In a historic first, an Indian port takes centre stage in global trade!

Trivandrum Port is emerging as a key player in global trade. Despite challenges like limited wharf length, it holds huge potential to tap into $33 trillion in trade by 2024. John Elias and Prateesh Prasad analyse its progress and hurdles.
In a historic first, an Indian port takes centre stage in global trade!
MSC Claude Girardet at Trivandrum Port. Image courtesy of The Hindu.

Asia is the world's new "majority."

When Bloomberg made this observation, the Trivandrum Port hadn't yet begun operations. The port's capabilities are poised to further expand this majority. Bloomberg's article discussed trade growth between Asia and other regions. But for now at least, Asia is the world's new "majority". “The region accounts for more than half of global trade, middle class households, manufacturing value added, and GDP growth. This offers opportunities for economies that can further integrate into Asian and global value chains.” McKinsey described this Asian dominance in the coming years as follows: “Asia's share of global trade has been growing, and in 2021, it accounted for more than 50% of the value of global trade.”

As Trivandrum Port in India, which can play a crucial role in Asian trade, moves forward with successful trials, 68 ships had visited by the end of last November, it is receiving extremely encouraging news globally. Most notable are the announcements made by Mediterranean Shipping Company (MSC). In just the fifth month of operations, they included Trivandrum Port in their two major liner service schedules. Furthermore, they elevated Trivandrum Port as the sole terminal in South Asia for their most important liner service, Jade.

When operating via Suez, the Jade service ports included Qingdao, Busan, Ningbo, Shanghai, Yantian, Singapore, King Abdulla, Gioia Tauro, Valencia, Barcelona, Gioia Tauro, King Abdulla, Singapore, and Shanghai. With the route now changing to go around the Cape of Good Hope, MSC has announced a modified Jade service. On the Qingdao-Barcelona-Shanghai route, MSC has positioned Trivandrum Port as the only Asian port between Singapore and the newly added Portugal Sines. The reason needs no explanation - MSC has recognized Trivandrum Port's significance- "Our Jade service connecting Asia and Europe trade will now feature a call in Vizhinjam (Trivandrum) India before sailing to the Mediterranean". Jade is MSC's premium service with 16 ships (MSC Irina, Celestino Maresca, Mette, Gulsun, Leni, Mia, Febe, Ambra, Mina, Nela, Sixin, Apolline, Amelia, Diletta, Allegra, Arina), including Irina, one of the world's largest vessels. A round service in the Europe-Asia sector takes 112 days to complete. The world's largest shipping company deciding to bring their biggest fleet to Trivandrum is an excellent start for the port.

Additionally, they included Trivandrum Port in another Asia-Europe service called Dragon. This service, starting from Shanghai and circling through Europe before returning to Yantian (Shanghai, Ningbo, Yantian, Nansha, Singapore, Abu Qir, Gioia Tauro, Genoa, La Spezia, Fos-Ur-Mer, Valencia, Malaga, Abidjan, Lome, Mundra, Nhava Sheva, Vizhinjam, Yantian) is calculated to take 128 days. Previously in the Asia-Europe service, after Singapore, the next stop was King Abdulla Port in Saudi Arabia (Suez). The distinctive feature of this service, which comprises 18 ships (MSC Florentina, Maria Saveria, Irene, Valeria, Aurora, Deila, Virginia, Fatma, Kayley, Martina Maria, Azra, Rome, Simona, Palermo, Mariacristina), is that Trivandrum Port has replaced Colombo as the stop after Mundra and Nhava Sheva on the return journey.

Beyond securing two major weekly services, the Jade service silently indicates something significant. As the only port in the combined region of South Asia, the Middle East, and Africa that can accommodate massive ships carrying over 24,000 containers on a weekly basis, this service gives Trivandrum Port significant momentum. This means that cargo from this vast geographical region will flow through Trivandrum Port. Such services can instantly connect all the Indian Ocean rim nations as we had previously anticipated. Regular service to Djibouti is already established. Services like MSC Rosaria's from Trivandrum to Mombasa, Kenya, will strengthen African connections further. African nations, with a market potential nearly equal to India's, will primarily receive their Chinese imports through the Jade and Dragon services. This suggests we might see more feeder services to East African port cities in the coming days, especially increased connectivity to Dar Es Salaam port in Tanzania, which is operated by Adani Group.

In the past 5 months, Trivandrum Port has achieved several notable milestones. It gained global attention when the massive vessel Claude Girardet docked there, a first for South Asia. However, this period also exposed several limitations of the port. Even with MSC being the sole operator, many mother ships couldn't enter the harbor despite berth availability. Those studying this issue realized that the wharf's length limitation prevents two 366-meter ships from docking simultaneously, disappointing all those who aspire for the port's rapid growth. This situation arose from a flaw in fixing the initial wharf length at 800 meters. All ships in MSC's weekly Jade and Dragon services range between 366-400 meters in length. This means if two ships from these services arrive at the same time, one must wait in outer waters of Trivandrum. Every hour lost could prompt vessel planners to reconsider their strategies.

The current limitations facing Trivandrum Port highlight how flawed the planning was. Let's take the example of two ships at the time of writing: MSC Maria Clara arrived at anchorage on Dec 5 at 12:43 PM. Despite arriving earlier, the 294-meter Maria Clara didn't enter port - was this to accommodate the 366-meter Kayley following behind? Either way, with Maria Clara still at anchorage on Dec 8 morning, we can assume the wharf's insufficient length was the cause. The port currently can't accommodate the total length of 660 meters for both ships, plus the additional 100 meters needed for mooring rope and clearance. Even upon completion of the port's first phase 800-meter wharf target, it won't solve the inability to simultaneously accommodate Jade and Dragon service vessels, pointing fingers at the port's designers and consultants who received crores in fees.

Globally, port designers typically anticipate such challenges, as exemplified by the UK's Felixstowe Port. They proudly announce their foresight: "The state-of-the-art container handling facility comprises a total quay length of 920m and can accommodate two of the world's largest container vessels simultaneously." This isn't mere publicity but marketing efforts based on their ability to simultaneously handle two of the world's largest mother vessels, each potentially reaching 400 meters. Trivandrum Port's inability to make such bold claims reveals a major planning oversight. Just five months into operations, it's clear that those who prepared the port's project report have no understanding of global vessel and cargo growth trends!

Did Trivandrum port's consultants ever envision the global trade figure of $33 trillion? According to the latest Global Trade Update by UN Trade and Development (UNCTAD), "Global trade is set to reach a record $33 trillion in 2024." Trivandrum Port, positioned at the center of Indian Ocean rim nations comprising approximately 28 countries, should be capable of handling and channeling a crucial portion of this $33 trillion. The Kerala government cannot delay providing the necessary infrastructure for this. This shouldn't be based solely on the current year's import-export figures. UNCTAD provides an indication: "Stable global growth forecasts and easing inflation also present a chance to build resilience in 2025."

The strategic maritime trade sector has been largely ignored for decades by India and Trivandrum Port is a project capable of leading the country into this sector. However, the current limitations in the number and capabilities of terminals, berths and other port infrastructure raise legitimate doubts about whether Kerala ever had or still has people competent in envisioning things at this scale. We can only hope that these issues will be addressed by the time the project is completed in 2028. During this period, we must thoroughly study potential global changes and opportunities. UNCTAD notes that- "Stable global growth and easing inflation create a window for developing economies to strengthen their trade position amid rising geopolitical uncertainties."

Our goal shouldn't be limited to the growth achievable in just a few months. The shipping routes passing in front of us hold immense possibilities. The ships flowing through these routes give us the indication that trade remains a cornerstone of sustainable development.