Kerala Clears Two Multi-Modal Logistics Parks to Back Vizhinjam Transhipment Hub

By Admin

09 Feb, 2026

Introduction

Kerala has taken a major step to strengthen its maritime and logistics backbone by granting in-principle approval for two multi-modal logistics parks (MMLPs) linked to the fast-emerging Vizhinjam International Seaport. The move is aimed at building a robust hinterland logistics ecosystem that complements Vizhinjam’s role as a global transhipment hub.

Government Approval and Strategic Framework
The Kerala government has approved proposals from two central public sector undertakings Container Corporation of India (CONCOR) and Central Warehousing Corporation (CWC). Vizhinjam International Seaport Limited (VISL) has been authorised to negotiate long-term land lease terms with both entities and sign non-binding MoUs, subject to final government clearance. This framework ensures public-sector-led, long-term logistics development aligned with the port’s growth.

CONCOR’s Planned MMLP at Kottukal
CONCOR plans to develop a multi-modal logistics park on around 25 acres at Kottukal, close to the port. The land cost is estimated at ₹7–8 crore per acre, with a proposed lease rent of ₹1.5 lakh per acre per month. The lease includes a 5% annual escalation and a 2% revenue share on operational income. CONCOR will be responsible for infrastructure development and statutory approvals, with VISL facilitating land and coordination support.

CWC’s Logistics Park Proposal at Amaravila
CWC has sought up to 50 acres at Amaravila, strategically located along the railway line to enable efficient rail–port connectivity. The estimated land cost is ₹4–4.5 crore per acre, with lease terms of ₹1 lakh per acre per month, a 5% annual escalation, and a 2% revenue share. Under this model, VISL will acquire and lease the land, while CWC will develop the logistics facilities and secure the required clearances.

Strengthening Vizhinjam’s Logistics Ecosystem
Both MMLPs are designed to significantly deepen Vizhinjam’s logistics ecosystem by integrating port operations with rail, road, warehousing, and value-added services. This will reduce cargo dwell time, improve supply chain efficiency, and make Vizhinjam more attractive for mainline container services and regional transhipment traffic.

Port Performance and Capacity Expansion Outlook
As of December 31, 2025, Vizhinjam has handled 670 vessels and 1.34 million TEUs, reflecting rapid operational ramp-up. Ongoing capacity augmentation will increase the port’s annual handling capacity from 1.5 million TEUs to 5.7 million TEUs by December 2028. The expansion plan also includes two new multipurpose berths with a combined quay length of 1,220 metres, further reinforcing Vizhinjam’s long-term competitiveness.

Conclusion
The approval of MMLPs by CONCOR and CWC marks a critical milestone in Kerala’s strategy to position Vizhinjam as a leading transhipment hub in the Indian Ocean region. By pairing world-class port infrastructure with integrated logistics parks, Kerala is laying the foundation for sustained cargo growth, efficient hinterland connectivity, and long-term economic gains for the state and the wider maritime trade network.