Vizhinjam port eyes 40% EXIM share in total cargo volumes over 3-5 years

By Admin

14 Jul, 2025

India’s maritime infrastructure is witnessing a transformative shift, with Vizhinjam International Seaport the country’s first deepwater transshipment port leading the charge. Situated just 10 nautical miles off key international shipping routes in Kerala’s Thiruvananthapuram district, Vizhinjam is now gearing up for full-scale export-import (EXIM) operations, aiming for an ambitious 40:60 EXIM-to-transshipment cargo mix within the next three to five years.

Rising EXIM Ambitions

Originally, Adani Ports and Special Economic Zone (APSEZ), which operates the port under a public-private partnership with the Kerala government, had modest expectations for the EXIM share around 10% in the first year. However, the growing interest from Indian exporters and consignees has changed the game. According to a senior APSEZ official, EXIM cargo could now contribute 10–15% in the very first year of operations.

Key players in various industries such as textile exporters from Tiruppur and Coimbatore, automaker Volvo, and retail giant Marks & Spencer have shown keen interest in shipping directly to Europe, Singapore, and Far East countries via Vizhinjam. Currently, these cargoes are rerouted through Chennai or Tuticorin and then transshipped via Colombo, increasing both costs and transit time.

“What typically takes around 40 days can be reduced to 25–26 days via Vizhinjam,” the APSEZ official noted.

Infrastructure in Overdrive

While Vizhinjam has already made a splash in transshipment cargo handling 395 vessels, including 23 ultra-large container ships, since commercial operations began on December 3, 2024 EXIM operations were delayed due to inadequate last-mile connectivity.

To resolve this, several infrastructure projects are underway:

• New road connectivity to National Highway 66 (Mumbai-Kanyakumari highway) to facilitate container movement.
  
  

• A proposed 10.7-km largely underground railway line from the port to Balaramapuram, improving rail access by December 2028.
  
  

• A cloverleaf interchange to accommodate seamless daily movement of 1,000–2,000 trucks.
  
  

Massive Expansion on the Horizon

APSEZ is investing ₹10,000 crore in the second phase of expansion over the next three years. The scope includes:

• Extending the breakwater from 3 km to 4 km.
  
  

• Expanding the jetty from 800 metres to 2,000 metres by 2028.
  
  

• Increasing annual cargo capacity from 1.5 million TEUs to 4.5 million TEUs.
  
  

This aggressive growth plan aligns with India's broader ambition to cut reliance on foreign ports like Colombo, Dubai, and Singapore, which currently handle about 75% of India’s 5–6 million TEUs of transshipped cargo annually.

Economic and Strategic Significance

Vizhinjam's development is a cornerstone for India’s maritime trade. Beyond saving time and costs for Indian exporters, it will also boost domestic margins and reduce logistical dependencies on neighboring countries.

In terms of revenue sharing, the Kerala government will start receiving 1% of the port’s revenue from 2035, with a 1% annual increase, capped at 40%.

Conclusion

With its strategic location, modern infrastructure, and strong public-private collaboration, Vizhinjam International Seaport is poised to become a key EXIM and transshipment hub in South Asia. The port’s vision of capturing 40% of total cargo volumes as EXIM in just a few years reflects not only a shift in trade routes but a broader push towards self-reliance and efficiency in India’s shipping ecosystem.

As Vizhinjam scales new heights, it’s set to redefine India’s place in the global maritime trade map.