Vizhinjam International Seaport, India’s first deepwater transshipment hub, is rapidly emerging as a game changer in the maritime logistics sector. The port is now gearing up to handle direct export-import (EXIM) cargo, aiming for a 40:60 ratio between EXIM and transshipment volumes within the next 3–5 years.
“Initially, we expected only 10% EXIM share in the first year. But interest from exporters and consignees suggests we might hit 10–15% right away,” said a senior official from Adani Ports and SEZ (APSEZ).
Key Highlights:
- High Exporter Interest: Major players such as Volvo, Marks & Spencer, and textile exporters from Tiruppur and Coimbatore are lining up to ship directly from Vizhinjam to Europe, Singapore, and the Far East.
- Time & Cost Savings: Direct EXIM routes from Vizhinjam could cut transit time by 14–15 days, bypassing the traditional Chennai/Tuticorin-Colombo transshipment route.
- Strategic Location: Situated just 10 nautical miles off the busy East-West and Far East–Middle East shipping corridor.
- Direct EXIM Operations to commence by September 2025, pending last-mile infrastructure readiness.
Infrastructure Push:
- Road Access: A new road link to NH66 (Mumbai-Kanyakumari Highway) is under construction to enable smoother truck movement.
- Rail Connectivity: A 10.7 km underground railway line to Balaramapuram is planned for completion by December 2028.
- Truck Handling Capacity: Acloverleaf interchange is proposed to manage the entry of 1,000–2,000 trucks daily.
Growth Milestones:
- Operational Milestones:
- Trial run: July 11, 2024
- Commercial launch: December 3, 2024
- Vessels handled so far: 395, including 23 ultra-large container ships
- MSC Irina, the world’s largest container vessel, made its maiden India call at Vizhinjam
- Cargo handled: 8.4 lakh TEUs to date
Future Investments:
- ₹10,000 crore expansion planned by APSEZ
- Breakwater extension from 3 km to 4 km
- Jetty expansion from 800m to 2,000m
- Capacity boost: From 1.5 million to 4.5 million TEUs annually by 2028
Strategic Impact:
- Reduces India's dependence on foreign transshipment ports like Colombo, Dubai, and Singapore
- Potential savings for Indian exporters/importers on logistics time and costs
Public-Private Partnership:
Vizhinjam port is a PPP project between the Kerala government and APSEZ, India’s largest port operator.
Under the revenue-sharing model, the Kerala government will start receiving 1% of port revenue from 2035, increasing annually by 1%, capped at 40%.
