Kerala’s Vizhinjam set to become latest gateway for India’s exports, imports
The Central Board of Indirect Taxes and Customs (CBIC) has granted final customs approval for Vizhinjam International Seaport in Kerala to begin full-scale export-import (EXIM) cargo operations from August 18.
Initial operations will be conditional: import cargo limited to Full Container Load (FCL) consignments eligible for Direct Port Delivery, with containers required to move from the terminal to the importer's premises within 48 hours; export cargo restricted to factory-stuffed, self-sealed FCL containers.
The conditions stem from the port not yet having a dedicated Container Freight Station (CFS) attached to it.
Customs regulation of EXIM cargo will be coordinated among the Commissioner of Customs (Preventive, Kochi), Vizhinjam International Seaport Ltd., and Adani Vizhinjam Port Private Ltd.
The port's first export container is scheduled to be flagged off on August 18, marking the formal start of the port's international trade role.
Transshipment Ports and India's Cargo Dependency on Foreign Hubs
A transshipment port handles cargo that is transferred from one vessel to another en route to its final destination, rather than being the cargo's origin or final port of call. India has historically lacked a deep-water transshipment hub of its own, routing a large share of container traffic through foreign ports.
Key Details
- Colombo Port in Sri Lanka has historically handled a large share of India's transshipment container traffic, along with hubs like Singapore, Jebel Ali (UAE), and Klang (Malaysia) — India loses freight revenue and time by depending on such foreign hubs.
- Vizhinjam has a natural draft/depth in the range of 20-24 metres, close to shore, allowing it to berth ultra-large container vessels without extensive dredging — a rare natural advantage among Indian ports, most of which require deep and costly dredging to accommodate large ships.
- The port is developed under a public-private partnership between the Government of Kerala and Adani Ports and Special Economic Zone Ltd. (APSEZ), with commercial operations having commenced in December 2024; the August 2026 customs notification marks the transition to full EXIM (as opposed to purely transshipment) cargo handling.
The customs notification enabling direct EXIM operations (not just ship-to-ship transshipment) allows Vizhinjam to also serve as a gateway port for Indian-origin export and import cargo, reducing India's reliance on Colombo and other foreign transshipment hubs for both transshipment and direct trade.
Major Ports vs. Minor/Non-Major Ports and Port Governance in India
Indian ports are classified into Major Ports (currently governed under the Major Port Authorities Act, 2021, administered by the Union Ministry of Ports, Shipping and Waterways) and Non-Major (minor/intermediate) Ports, which fall under State jurisdiction per Entry 31 of the State List (List II) read with the Union's residuary powers over shipping and navigation on the Union List.
Key Details
- Vizhinjam is a State-government-promoted port (Kerala), developed via a landlord-port PPP model in which the state retains ownership of port land/infrastructure while a private concessionaire (Adani Ports) builds and operates terminal facilities — distinct from wholly Union-government-run Major Ports such as Kochi (Cochin Port) or Chennai.
- The Sagarmala Programme (launched 2015, Ministry of Ports, Shipping and Waterways) provides the broader national framework for port-led development, including new port capacity, port connectivity, and coastal community development, under which projects like Vizhinjam draw policy support.
- Direct Port Delivery (DPD), the cargo-clearance mechanism cited in the customs notification, allows importers to take delivery of containers directly from the port/terminal rather than routing through a separate Container Freight Station, reducing dwell time and logistics cost — introduced nationally as an ease-of-doing-business/logistics reform measure by CBIC.
The phased, DPD-based conditions attached to Vizhinjam's EXIM notification reflect standard customs practice for a newly notified gateway port that lacks its own CFS, and illustrate the landlord-port governance model under which a state-promoted, privately operated port integrates into the national customs and EXIM framework.
- Full-scale EXIM cargo operations at Vizhinjam begin: August 18, 2026 (per CBIC customs notification).
- Natural draft/depth at Vizhinjam: approximately 20-24 metres, enabling accommodation of ultra-large container vessels with minimal dredging.
- Developer: Government of Kerala in partnership with Adani Ports and Special Economic Zone Ltd. (APSEZ); commercial (transshipment) operations began December 2024.
- Nodal customs authority: Commissioner of Customs (Preventive), Kochi, coordinating with Vizhinjam International Seaport Ltd. and Adani Vizhinjam Port Private Ltd.
- Initial EXIM cargo restricted to Full Container Load (FCL) consignments under Direct Port Delivery (imports) and factory-stuffed, self-sealed FCL containers (exports), pending a dedicated Container Freight Station.
- Location: Thiruvananthapuram district, Kerala — near major East-West shipping lanes through the Indian Ocean.