Source : INDIA TODAY NEWS
Vizhinjam International Seaport in Kerala has started full-fledged export-import (EXIM) operations, marking a major shift in its role from a transshipment hub to a direct gateway for Indian goods entering and leaving global markets.
The move is expected to give businesses in South India easier access to international shipping routes, reduce dependence on foreign transshipment ports and improve the efficiency of India’s supply chains.
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FROM TRANSSHIPMENT HUB TO TRADE GATEWAY
EXIM operations mean the port can now handle cargo that is directly exported from or imported into India, apart from moving containers between international shipping services.
Located around 10 nautical miles from major international shipping routes, Vizhinjam has a natural draft of 18-20 metres. This allows it to handle some of the world’s largest container ships, including Ultra Large Container Vessels (ULCVs).
The port is expected to benefit businesses in Kerala, Tamil Nadu and Karnataka by providing more direct access to global shipping networks.
WHY VIZHINJAM MATTERS FOR INDIA
India currently sends more than 75% of its container transshipment cargo through foreign ports. This adds to shipping costs and can increase transit time.
With EXIM operations now beginning at Vizhinjam, a larger share of this trade can potentially be handled closer to home. This could help Indian exporters and importers save time and make their supply chains more efficient.
The port could be particularly useful for manufacturing and commercial centres such as Bengaluru, Coimbatore and Tiruppur. Its growth is also expected to create demand for warehousing, freight forwarding, logistics and other related services.
Vizhinjam began commercial operations on December 3, 2024, and has already handled more than 2.28 million twenty-foot equivalent units (TEUs) and around 1,100 vessels. The port crossed the 1-million-TEU mark within 10 months and reached 2 million TEUs in 18 months.
It has also handled more than 80 Ultra Large Container Vessels. Among the biggest ships to call at the port was MSC Irina, a 399.99-metre-long vessel with a capacity of 24,346 TEUs.
These numbers have helped establish Vizhinjam as a port capable of handling large-scale global shipping operations.
Rs 16,000 CRORE EXPANSION PLANNED
The next big step is the port’s Phase 2 expansion, which involves an investment of Rs 16,000 crore.
The expansion will increase Vizhinjam’s annual capacity to 5.7 million TEUs. It will also add 1,200 metres of container berth and provide permanent rail connectivity.
The project will further include better road links, logistics parks, warehouses and other supporting infrastructure. The accelerated completion of the full phase is targeted for December 2028.
With this expansion, the cumulative investment by the Adani Group in the Vizhinjam project is expected to reach Rs 30,000 crore.
MORE JOBS AND A WIDER BUSINESS ECOSYSTEM
The development is expected to create more than 5,000 additional direct and indirect jobs.
The impact is likely to go beyond the port itself. As cargo volumes increase, businesses involved in transport, storage, freight forwarding, logistics and other support services could also see greater demand.
The Kerala government has also said that stronger road and rail connectivity will be important to make the most of Vizhinjam’s potential. It plans to allocate Rs 3,200 crore for land acquisition for the Ring Road, while discussions are under way to attract private investment.
A NEW LINK TO GLOBAL MARKETS
Kerala Chief Minister VD Satheesan described the start of EXIM operations as an important milestone for the state and said Vizhinjam can now serve as a gateway to the world.
For India, the significance of the port goes beyond increasing container-handling capacity. A successful direct EXIM gateway could help reduce reliance on overseas ports, improve trade links and allow Indian businesses to connect more efficiently with global markets.
With its strategic location, deep draft and planned expansion, Vizhinjam is now positioned to play a bigger role in India’s growing ambitions in global trade and maritime logistics.
– Ends
SOURCE :- TIMES OF INDIA
