Back-to-back arrest of MSC vessels poses challenge to Vizhinjam port

The back-to-back arrest of around four vessels of Mediterranean Shipping Company (MSC) following the shipwreck of its vessel, MSC Elsa III, off the coast of Kerala after calling at Vizhinjam International Seaport, and the associated litigations have cast a shadow on the prospects of the newly commissioned deep-water and container transshipment port.

This comes at a time when the Vizhinjam port, where MSC is the anchor client, has been witnessing a decline in container discharge since May. The volume of containers handled dropped from 1.2 lakh TEU in May to 99,976 TEU in June, although there was a slight uptick in July with 1.05 lakh TEU. Only 24 ships called at the port until August 17, against a record number of 51 ships in March.

Speaking to The Hindu, a senior government source said multiple factors, including adverse weather conditions, affect cargo volume at the port. For instance, the world’s largest container ship, MSC IRINA, had to wait for nearly a week at outer anchorage to get a berthing slot at Vizhinjam port on July 9 as there were around five to six ships in the queue then. Now, there is hardly any queue of ships. Moreover, after the docking of MSC IRINA, no ultra-large vessels called at the port, said the officer.

Initially, Akiteta II, a sister ship of the MSC Elsa III that capsized off the coast of Kerala on May 25 causing widespread environmental damage, was arrested in the second week of July. Since then, the ship has been idling at the outer anchorage of the port after the shipping company challenged the admiralty suit filed by the Kerala government demanding ₹9,531 crore in compensation for the environmental and economic damage caused by the shipwreck.

In the latest incident, the High Court ordered the arrest of MV MSC Palermo, berthed at Vizhinjam port, until the claim amount is deposited as security, in response to a compensation suit filed by four fishing-boat owners. Earlier, MV MSC Manasa F and MSC Polo II were conditionally arrested following similar suits by cargo owners to secure their claims ranging to several crores.

‘Wrong signal’

According to Vizhinjam port sources, the arrest of MSC vessels specifically at the Vizhinjam port sends a wrong signal to the world regarding the port, even as there is scope for recording such arrest of vessels at other ports in the country, including the Cochin port, said the officials.

S.N. Raghuchandran Nair, president, Trivandrum Chamber of Commerce and Industry (TCCI), echoed the sentiment. “We invited companies to Kerala after holding Vizhinjam conclave. This pattern of arresting vessels following one accident will dissuade investors,” said Mr. Nair.

However, maritime law expert V.J. Mathew countered the argument, saying that the vessels can be arrested anywhere under the jurisdiction of the Kerala High Court. Since more vessels of the MSC call at Vizhinjam on a daily basis, it is the ideal destination to record the arrest and hold them responsible for the loss inflicted on the State, fishermen, and other stakeholders. There is no merit in the argument ‘why it is Vizhinjam’, he said.

On the other hand, the greens, including Greenpeace India, demanded that MSC be held responsible and made to pay for environmental damage and livelihood loss. Meanwhile, the Vizhinjam port authorities maintained that, irrespective of the setbacks, the port is poised to achieve 1 million TEU cargo target by August itself.