Vizhinjam Port Inaugurated: A Major Boost to India’s Maritime and Economic Future

03-05-2025

05:07 AM

1 min read

What’s in Today’s Article?

Prime Minister Narendra Modi commissioned the ₹8,800 crore Vizhinjam International Deepwater Multipurpose Seaport in Kerala’s capital.

India has officially entered the global container transhipment league with the inauguration of the Vizhinjam International Deepwater Multipurpose Seaport in Kerala.
Commissioned by Prime Minister Narendra Modi on May 2, 2025, the ₹8,800 crore project marks the culmination of decades-long efforts to establish India's first deepwater transhipment port, positioned strategically to serve as a vital logistics hub in the Indian Ocean region.

The Vizhinjam Port, located near Thiruvananthapuram in Kerala, has been developed under a Public-Private Partnership (PPP) model between the Adani Group and the Kerala government.
With a natural draft of nearly 20 metres, it can accommodate ultra-large container vessels, a key requirement for global cargo movement.
The port had been conceptualized as far back as 1991, but saw several delays due to environmental, legal, and logistical challenges. Its eventual operationalization in 2025 marks a major milestone in India’s maritime infrastructure ambitions.

Natural Depth & Strategic Location: The port’s depth and proximity to international shipping lanes make it ideal for large cargo vessels with over 20,000 container capacity.
Low Maintenance Advantage: Minimal coastal sand movement around the port ensures reduced dredging and maintenance costs.
Reduced Dependency on Foreign Ports: Vizhinjam aims to significantly reduce India’s reliance on transhipment hubs like Colombo, Singapore, and Jebel Ali, which currently handle 75% of India’s transhipped cargo.

According to government estimates, India will save approximately $220 million annually by managing its own transhipment cargo. Presently, the country pays an additional $80–$100 per container due to reliance on foreign ports. Bringing these operations in-house will:
- Improve logistics efficiency
- Reduce delivery delays
- Strengthen India’s economic resilience during geopolitical disruptions
This move is expected to transform the shipping landscape in the country by retaining foreign exchange and increasing internal job opportunities within the port and logistics sectors.

In his address, Prime Minister Modi emphasized that port cities and coastal states will play a critical role in realizing the vision of a developed India.
He noted that the government’s maritime policy over the last decade has focused on integrating modern infrastructure with ease of doing business. Over the last ten years, billions have been invested through PPP models to modernize Indian ports and bring them on par with global standards.
The Vizhinjam port also serves as a model of cooperative federalism, with a Left-led state government partnering with a major private enterprise, Adani Ports and SEZ Ltd, to realize a shared economic vision.

The inauguration of the Vizhinjam Port aligns with broader national strategies:
- Shipbuilding Promotion: The Union Budget has introduced policies to promote indigenous ship construction.
- Kochi Shipbuilding Cluster: A shipbuilding and repair hub is being developed in Kochi to enhance employment and manufacturing in the sector.
- Improved Global Rankings: India now has two ports in the world’s top 30 and ranks among the top 20 in the Logistics Performance Index.

The Vizhinjam International Deepwater Port is not just a logistical upgrade; it is a strategic economic pivot.
By reducing external dependencies, optimizing maritime routes, and creating local employment, the port symbolizes India’s growing stature in global trade.
As its capacity expands in the coming years, it is expected to become a cornerstone of India’s maritime policy and a major economic engine in the Indo-Pacific region.

Q1. What is the Vizhinjam Port?

Ans. It is India’s first dedicated deepwater container transshipment port located in Kerala.

Q2. How much has been invested in the Vizhinjam Port project?

Ans. The port has been built at an estimated cost of ₹8,800 crore under a public-private partnership.

Q3. What are the economic benefits of the Vizhinjam Port?

Ans. It is expected to save India $220 million annually by reducing reliance on foreign transshipment hubs.

Q4. Which companies and governments are involved in the project?

Ans. The port is operated by Adani Ports in partnership with the Kerala government.

Q5. How will Vizhinjam Port impact global trade for India?

Ans. It will allow India to directly handle large cargo ships, improve logistics, and boost trade efficiency.

Source: TH | HT