Vizhinjam Port: A Game-Changer for India’s Maritime Trade and Economic Growth
May 5, 2025

Why in the News?

Recently, PM Modi commissioned the ₹8,800 crore Vizhinjam International Deepwater Multipurpose Seaport in Kerala’s Thiruvananthapuram.

What’s in Today’s Article?

  • Vizhinjam International Port (Historical Background, Initial Development, Early Milestones, Future Phases, Challenges, etc.)

Introduction

  • The inauguration of Vizhinjam International Seaport marks a historic moment in India’s maritime landscape.
  • Located in Thiruvananthapuram district of Kerala, Vizhinjam is India’s first deep-water, semi-automated container transhipment port.
  • It is strategically positioned just 10 nautical miles from global shipping routes, making it a crucial asset for international trade.
  • With the first phase of development complete, the port is set to reshape India’s standing in global maritime logistics and provide an economic thrust to the southern region.

Historical and Strategic Significance

  • Vizhinjam’s maritime relevance dates back to ancient times, known during the Chola period as Rajendra Chola Pattinam.
  • Over the years, it lost prominence due to colonial preferences for ports like Madras and Cochin.
  • However, renewed interest began in the 1940s when Travancore commissioned a study on its potential. After nearly eight decades, Vizhinjam is now reborn as a modern transhipment hub.
  • Among all Indian ports, Vizhinjam is geographically closest to key international maritime lanes.
  • This proximity provides India an opportunity to reduce dependency on foreign ports like Colombo, Singapore, and Klang, which currently handle nearly 75% of India’s transhipped cargo.

First Phase Development and Features

  • The port was developed under a public-private partnership (PPP) model at a cost of ₹8,867 crore.
  • Contributions included ₹5,595 crore from the Kerala Government, ₹2,454 crore from Adani Ports (the concessionaire), and ₹817.8 crore Viability Gap Funding (VGF) from the Union Government.
  • Key features include:
    • Natural draft of 20 metres, allowing docking of Ultra Large Container Vessels.
    • Semi-automation, with women crane operators trained at the Community Skill Park.
    • India’s first greenfield deep-sea port, operational since July 2024 with full-scale commercial activity from December.
  • Within months, the port exceeded its projected target of handling 1 lakh TEUs annually by processing 6 lakh TEUs and hosting 280 vessels. In March 2025 alone, it handled 1.08 lakh TEUs.

Early Milestones and Global Interest

  • Global shipping giant Mediterranean Shipping Company (MSC) has included Vizhinjam in its Jade and Dragon shipping services. Notable events include:
    • Docking of MSC Claude Girardet, South Asia’s largest container ship (24,116 TEUs).
    • Handling of 10,330 containers from MSC Anna in a single visit, a record for any Indian port.
    • MSC Irina, the world’s largest container ship, is expected to dock in May 2025.

Fast-Tracking Future Phases

  • The Kerala Government, in partnership with Adani Ports, aims to complete remaining construction phases by 2028, significantly earlier than the initial 2045 target. These phases involve:
    • Increasing capacity from 1 million TEUs to 4.87 million TEUs.
    • Extending container berth length from 1,200 to 2,000 metres.
    • Investment of ₹20,000 crore.
    • Environmental clearance for phases two and three was granted in March 2025.
  • The port has been featured at global forums including WEF 2025 and the Invest Kerala Global Summit.

Infrastructure and Operational Challenges

  • Despite strong progress, several infrastructural gaps remain:
    • No Integrated Check Post (ICP), which is vital for import-export operations and crew change facilities. The application is pending with the Union Home Ministry.
    • Delays during high ship traffic (40 ships in February) due to inadequate support systems.
    • Customs office was only recently opened, and a permanent Port Health Office is still awaited.

Associated Industrial and Economic Initiatives

  • To promote local economic integration, the Kerala Government is pushing forward:
    • A Vizhinjam Development Zone, envisaging an industrial corridor.
    • State-specific business centres near the port.
    • A proposal to station a dedicated IAS officer for the Vizhinjam Economic Growth Corridor.
    • Allied businesses including shipbuilding, logistics, warehousing, and clean bunkering (hydrogen, ammonia).
    • The energy agency ANERT is exploring green hydrogen and wave energy projects.

Vision of a Port-Led Economic Hub

  • Echoing global models like China’s Shenzhen SEZ, there is a proposal to designate Vizhinjam as a Special Investment Region (SIR). The Kerala Government is expected to introduce an SIR Bill, focused on:
    • Creating a special economic zone (SEZ).
    • Ensuring compensation and rehabilitation for landowners.
    • Studying best global practices in port-led economies.
  • Concerns remain about the financial burden of Union Government’s VGF repayment, potentially ballooning from ₹817.8 crore to ₹10,000 crore.
  • There are also calls to halt nearby rival transhipment projects, like the one proposed in Colachel, to ensure Vizhinjam’s economic sustainability.

Conclusion

Vizhinjam International Seaport stands at the crossroads of opportunity and challenge. As India’s first deep-sea transhipment port with world-class capabilities, its success will depend on coordinated efforts among the State, Centre, businesses, and global shipping firms.

If fully realised, Vizhinjam could serve as a transformative maritime hub for South Asia, propelling Kerala and India into a new era of trade leadership.

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