Published: May 2, 2025 8:52 am
Author: RT
New Delhi hopes Vizhinjam will be a major facilitator for Asian logistics
Indian Prime Minister Narendra Modi has commissioned the Vizhinjam International Seaport in the southern state of Kerala. It is India’s first deepwater transshipment port and was built at a cost of $1.07 billion. It is expected to bring major benefits to the nation’s economy, according to industry watchers.
“On the one hand, there is this big sea with so many opportunities and on the other hand, there is the beauty of nature, in between there is this ‘Vizhinjam International Deepwater Multipurpose Seaport’, which is a symbol of new-age development,” Modi said at the inauguration. He was referring to the state of Kerala, a key tourist spot.
Currently, nearly 75% of India’s container cargo is handled by foreign ports such as Colombo, Singapore, and Dubai, resulting in longer shipping times and added costs, Modi said, adding that Indian ports “lost revenue due to transshipment happening in ports outside India.”
The foreign handling has led to India losing around $200-220 million every year, with each container rerouted through another country incurring extra charges of $80-100. However, with the commissioning of the Vizhinjam Port, this will change, Modi added.
READ MORE: India withdraws transshipment facility for Bangladesh amid tariff wars
This project has been developed under a public-private partnership by Adani Ports and Special Economic Zone Ltd, which belongs to billionaire business tycoon Gautam Adani. Adani Ports is India’s largest port developer.
The port’s natural sea depth of 18-20 meters close to the shore allows even the largest cargo ships in the world to dock without expensive dredging. Its proximity to the main east-west shipping route, just ten nautical miles away, eliminates the need for detours, industry watchers said.
The port already received the MSC Türkiye, one of the world’s largest container vessels, earlier this year, according to reports. India is taking steps to ensure that it can enable higher trade volumes with projects such as the transshipment facility, according to industry watchers.
