The Kerala government has approved (in principle) the establishment of two multi-modal logistics parks (MMLPs) at the Vizhinjam International Seaport in Thiruvananthapuram.
This comes after the Fisheries and Ports Department cleared proposals from the Container Corporation of India Ltd (CONCOR) and the Central Warehousing Corporation (CWC), two public sector undertakings.
As a result, the Managing Director of the Vizhinjam International Seaport Limited (VISL), Dr Divya S. Iyer, has been authorised to negotiate the terms of long-term land lease contracts with the CONCOR and the CWC.
Kerala Budget 2026: Thiruvananthapuram capital region gets state budget allocations in line with Centre’s maritime push, but loses out on new investments in city infrastructure
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The VISL will then sign non-binding Memoranda of Understanding (MoUs) with the public sector undertakings, subject to further approvals from the state government, as per an Onmanorama report.
The proposals
The CONCOR proposed that its MMLP be built on 25 acres of land at Kottukal (priced at about Rs 7-8 crore per acre) near the Vizhinjam port.
Its lease model includes a monthly rent of Rs 1.5 lakh per acre as well as 2 per cent revenue sharing from the total operational income. The rent is also set to increase by 5 per cent every year.
Infrastructure development and statutory clearances for the project will be undertaken by CONCOR, with support from the port authorities.
The CWC proposal had sought up to 50 acres of land at Amaravila (priced at about Rs 4-4.5 crore per acre)—alongside the existing railway line—for its logistics park.
Its lease model includes a monthly rent of Rs 1 lakh per acre as well as 2 per cent revenue sharing from the total operational income. The rent is also set to increase by 5 per cent every year.
The Vizhinjam port will acquire and lease out the land, while the CWC will handle infrastructure development and obtain statutory approvals.
The two MMLP projects are aimed at supplementing the Vizhinjam port's logistics ecosystem and boost long-term growth in cargo handling.
Adani Ports will launch Phase 2 of the Vizhinjam seaport project in Kerala with an investment of around ₹16,000 crore. The expansion aims to position Vizhinjam as a major transhipment hub in the Indian subcontinent.
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This is seen as an important part of the capacity augmentation works that are currently underway to increase the Vizhinjam port's annual handling capacity from 1.5 million TEUs in December 31, 2025 to 5.7 million TEUs by December 2028.
