Vizhinjam Port to be dedicated to nation today by PM Modi

By Admin

02 May, 2025

In a landmark moment for India's maritime infrastructure, Prime Minister Narendra Modi dedicated the Vizhinjam International Seaport to the nation today at 11 a.m., marking a historic leap for Kerala and India's coastal economy. The inaugural ceremony was attended by a distinguished gathering, including Governor Rajendra Vishwanath Arlekar, Chief Minister Pinarayi Vijayan, Union Shipping Minister Sarbananda Sonowal, Union Ministers George Kurien and Suresh Gopi, and several state dignitaries, including the Leader of the Opposition.

A Monumental Investment

The port’s development came at a significant cost of ₹8,867 crore, with Kerala’s State Government contributing ₹5,595 crore (63%), the Adani Group, which serves as the project’s concessionaire, investing ₹2,454 crore (28%), and the Central Government providing ₹818 crore (9%) under the Viability Gap Funding (VGF) agreement.

The construction of the breakwater alone cost the State ₹1,350 crore, while an additional ₹1,482.92 crore is allocated to establish rail connectivity to the port, further strengthening its logistical capabilities.

Political Milestone for Kerala

Describing the event as a “golden moment”, Kerala Port Minister V.N. Vasavan hailed the dedication as a proud milestone for the Pinarayi Vijayan-led government, which is celebrating its fourth anniversary. He emphasized that the handover of the port marks Kerala's entry into the global maritime economy and represents a strategic breakthrough.

However, Vasavan also criticized the Centre’s decision to treat the VGF amount as a loan instead of a grant, unlike the ₹1,411 crore provided to the Thoothukudi Port's Outer Harbour project without repayment obligations. He warned that Kerala might have to repay an estimated ₹10,000 to ₹12,000 crore due to this decision, which could significantly impact the State's finances.

Operational Excellence Ahead of Commissioning

Even before its formal inauguration, Vizhinjam Port had already proven its potential. Since the trial operations began on July 11, 2024, and commercial operations commenced on December 3, 2024, the port has welcomed 285 ships and handled a staggering 5,93,000 TEUs, reflecting 110% utilization of its current capacity.

The port also made headlines when MSC Türkiye, the largest vessel ever to arrive in India, berthed at Vizhinjam, showcasing its deep-draft capacity and state-of-the-art infrastructure. Moreover, MSC’s Jade Service, a weekly shipping service to Europe, was launched from this port.

In February and March 2025, Vizhinjam Port ranked first in cargo movements on the south and west coasts of India, handling over 1 lakh TEUs per month—a feat that reflects its operational prowess and global relevance.

Future Growth and Global Aspirations

Looking forward, the port's expansion is poised to make it a global player. By 2028, the port aims to reach a minimum installed capacity of 3 million TEUs per annum, with the Adani Group committing an additional ₹9,500 crore investment in the next phases.

Though Kerala has so far received ₹45 crore in GST from port operations, the Centre is expected to earn approximately ₹6,000 crore annually from customs duties alone, while the State may receive only 1 to 3 paise per rupee, as per Vasavan’s estimates.

Conclusion

The formal commissioning of Vizhinjam Port is more than a regional achievement—it is a national milestone that enhances India’s standing in global maritime trade. It reflects the collective efforts of public and private sectors, and despite political differences over funding models, the port stands as a symbol of infrastructure excellence and a gateway to global commerce. As Vizhinjam begins its full-fledged journey, it promises to transform not only Kerala’s economic landscape but also redefine India’s role in the international shipping and logistics arena.