Vizhinjam port to start full EXIM operations from Aug 18
Vizhinjam International Seaport in Kerala is set to begin full-scale export-import (EXIM) operations from August 18, moving beyond its initial role as a pure transshipment hub.
The Kerala government will simultaneously launch "Mission Samudra," a long-term maritime development initiative aimed at integrating the state's ports, shipbuilding facilities, roads, railways, waterways, and industrial zones into a unified maritime economy.
The transition allows Vizhinjam to handle gateway cargo (goods actually bound for Indian markets) in addition to transshipment cargo (goods merely transiting through India between other countries).
Even after gateway operations begin, a large majority of the port's cargo is expected to remain transshipment traffic in the near term.
Transshipment vs Gateway Ports
A transshipment port handles cargo that is transferred between ships without entering the domestic economy — the goods are simply moving from one vessel to another en route to a final destination elsewhere. A gateway port, by contrast, handles cargo that is actually imported into or exported from the country where the port is located. India has historically lacked adequate deep-draft transshipment capacity, forcing its containers to be routed through foreign hub ports.
Key Details
- Vizhinjam is described as India's first dedicated deep-water container transshipment port, developed on a landlord-PPP (design-build-finance-operate-transfer) model, a first of its kind in India.
- It has a natural draft depth in the range of 18-20 metres close to shore, requiring minimal capital dredging, allowing it to host ultra-large container vessels needing 20-metre-plus drafts.
- Phase 1 capacity is about 1 million TEUs (twenty-foot equivalent units), with subsequent phases planned to add roughly 6.2 million TEUs.
- The port is operated by Adani Ports under a concession agreement (Adani Vizhinjam Port Private Limited), with construction having begun in December 2015.
The shift to full EXIM operations marks Vizhinjam's evolution from a pure transshipment facility into a combined gateway-and-transshipment hub, directly targeting the cargo India currently loses to foreign ports.
India's Transshipment Leakage and Comparison with Other Major Ports
India has historically transshipped a large share of its container trade through foreign hub ports because no domestic port previously offered sufficient draft and crane capacity for the largest container vessels.
Key Details
- Estimates suggest that roughly 61-75% of India's export-import containers have been transshipped via foreign ports such as Colombo (Sri Lanka), Singapore, Jebel Ali, Salalah, and Port Klang, adding an estimated cost burden of up to USD 200 per TEU.
- Among Indian ports, JNPT (Jawaharlal Nehru Port Trust, near Mumbai), Mundra, and Chennai together handle the majority of India's container traffic, with JNPT alone holding roughly half the market share; none of these previously had the natural draft to match dedicated transshipment hubs like Colombo or Singapore.
- Vizhinjam has since been added to major shipping alliance routes (e.g., as part of MSC's Jade Service connecting Singapore to Europe), signalling its integration into global container networks.
The move to full EXIM operations is intended to help India retain more value from its own container trade instead of paying transshipment fees to neighbouring hub ports.
Sagarmala Programme
Sagarmala is the Government of India's flagship port-led development programme, launched in 2015 under the Ministry of Ports, Shipping and Waterways, aimed at modernising ports, improving port connectivity, and promoting port-linked industrialisation and coastal community development.
Key Details
- The programme covers an estimated outlay of around Rs 5.8 lakh crore across several hundred identified projects nationwide.
- It works alongside the government's broader Maritime India Vision 2030, which targets increased port capacity, coastal shipping, and inland waterways use.
- State-level maritime initiatives, such as Kerala's Mission Samudra, are designed to align with and complement the national Sagarmala framework by integrating state port assets into the wider logistics network.
Mission Samudra represents a state-level maritime push that mirrors and feeds into the national Sagarmala vision, with Vizhinjam functioning as the flagship asset around which the state's maritime economy is being organised.
- Full EXIM operations at Vizhinjam Port begin August 18.
- Vizhinjam's natural draft depth is approximately 18-20 metres, requiring no significant capital dredging.
- Phase 1 capacity is about 1 million TEUs, expandable to roughly 7.2 million TEUs across later phases.
- An estimated 61-75% of India's container trade has historically been transshipped through foreign ports such as Colombo, Singapore, and Salalah.
- Sagarmala, launched in 2015, has an estimated outlay of about Rs 5.8 lakh crore across identified port-led development projects.