EXIM operations at Kerala’s Vizhinjam seaport set to begin on August 18
Full-fledged EXIM (export-import) operations at Kerala's Vizhinjam International Seaport are set to commence on 18 August, according to an official statement.
Until now, the port has handled only transshipment cargo — containers relayed between other ports rather than India's own exports and imports.
The commencement of EXIM operations will be marked by the dispatch of the port's first export container, followed by a business summit bringing together shipping lines, logistics firms, exporters, and investors.
The transition is expected to lower cargo transportation costs, improve supply chain efficiency, and enhance competitiveness for exporters using the port.
Transshipment Ports vs. EXIM Gateways
A transshipment port is one where cargo arriving on a large "mother vessel" is transferred to smaller "feeder vessels" for onward delivery, without the cargo actually originating from or being destined for that country. An EXIM (export-import) port, by contrast, directly handles a country's own trade cargo. Vizhinjam's shift from the former to the latter role changes its function from a transit point to a genuine international trade gateway for India.
Key Details
- India has historically lost a large share of its container transshipment business to foreign hub ports — chiefly Colombo (Sri Lanka), Singapore, and Port Klang (Malaysia) — because no Indian port could handle ultra-large container vessels without dredging.
- Estimates suggest India loses roughly USD 200–220 million annually in transshipment-related revenue and forgone economic activity to these foreign hubs, with a large majority of India-linked transshipment cargo currently handled outside the country.
- Government policy documents describe reducing this "transshipment leakage" as a strategic objective of port-led development.
The move to EXIM operations converts Vizhinjam from a facility that primarily serves other countries' trade in transit to one that directly serves Indian exporters and importers, addressing the transshipment-leakage problem the sector has long flagged.
Vizhinjam's Geography — A Natural Deepwater Port Near the East-West Shipping Lane
Vizhinjam, located near Thiruvananthapuram in Kerala, sits close to one of the world's busiest container shipping routes connecting Europe, the Middle East, and East Asia — a factor that shaped the decision to develop it as a container transshipment and, now, EXIM hub.
Key Details
- The port has a natural draft depth of approximately 24 metres close to shore, among the deepest of any Indian port, allowing it to berth ultra-large container vessels without extensive dredging.
- Its proximity to the international East-West shipping corridor (used by vessels moving between Europe/the Gulf and Southeast Asia/the Far East) allows large vessels to call directly rather than route through Colombo, Singapore, or Port Klang.
- Commercial operations at the port began in December 2024, and it has since handled over 2 million TEUs (twenty-foot equivalent units) within about 18 months.
These same geographic and depth advantages that made Vizhinjam viable as a transshipment hub are now the basis for scaling it into a full EXIM gateway.
Sagarmala Programme and Port-Led Development
Vizhinjam's development fits within India's broader port-led development strategy, which seeks to reduce logistics costs and reliance on foreign transshipment hubs through targeted domestic port capacity.
Key Details
- The Sagarmala Programme (launched 2015) under the Ministry of Ports, Shipping and Waterways is the umbrella framework for port modernisation, port connectivity, port-led industrialisation, and coastal community development.
- Vizhinjam was developed under a Public-Private Partnership model between the Government of Kerala and Adani Ports and Special Economic Zone (APSEZ), which operates the terminal.
- APSEZ has announced investment plans of roughly Rs 20,000 crore by 2028 to expand the port, alongside a separate stake sale of 49% in the port entity to a global shipping line's terminal arm.
The EXIM launch is presented as a milestone within this larger national push to build domestic port capacity capable of directly competing with established regional transshipment hubs.
- EXIM operations at Vizhinjam Seaport scheduled to begin: 18 August.
- Location: near Thiruvananthapuram, Kerala.
- Natural draft depth: approximately 24 metres.
- Commercial (transshipment) operations began: December 2024.
- Container throughput: crossed 2 million TEUs within around 18 months of commissioning.
- Current capacity: approximately 1.6 million TEUs, with planned expansion to about 5.7 million TEUs by December 2028.
- Development model: Public-Private Partnership between the Government of Kerala and Adani Ports and Special Economic Zone (APSEZ).
- Estimated annual transshipment-revenue loss to foreign hub ports (Colombo, Singapore, Port Klang) prior to Vizhinjam: approximately USD 200–220 million.