Why Adani Ports plans to build 100-acre container freight station for Vizhinjam Port

Adani Ports and Special Economic Zone (APSEZ) is planning to build a container freight station (CFS) on 100 acres of land near the Vizhinjam Port.

The construction of the CFS is based on another crucial development at the port: the start of full-scale export-import (EXIM) operations from August 18 onwards, as per an announcement from Kerala Chief Minister V.D. Satheesan.

This marks an important step in its two-year journey that will see it transform from India's first deep-water container transshipment port to a full-fledged international multi-purpose port.

“The port will build a CFS when EXIM operations pick up and stabilise. It is part of the future expansion plan,” an official told Times of India.

Why this matters

Usually located either within a port or at an inland location, a CFS is where goods are loaded into—or unloaded from—containers.

This is very important for EXIM operations, because they serve as a full-service warehouse that stages, sorts, and prepares cargo for last-mile logistics.

CFSs are also very different from container yards (CYs), which is typically where full container load (FCL) shipments—or containers with cargo used by only one shipper—are handled and empty containers are stored for a long-term period.

This is because CFSs can keep empty containers only for a temporary period, and because these can handle both FCL and Less Than Container Load (LCL) shipments (containers with cargo used by multiple shippers).

How is this linked to the port? This comes after the port authority, Vizhinjam International Seaport Limited (VISL), received final approval from the Central Board of Indirect Taxes and Customs (CBIC) to commence full-scale EXIM operations from August 18 onwards.

"Customs regulation of EXIM cargo will be carried out in coordination with various government and facilitating agencies, such as VISL, AVPPL, the Mercantile Marine Department, the Port Health Organisation, the Bureau of Immigration, the Coastal Police, authorised banks and port security agencies," the CBIC order dated July 24 had said.

However, the CBIC approval also came with conditions, because the Thiruvananthapuram-based port does not have a CFS.

As per the CBIC order, when EXIM operations begin at the port, it has only been allowed to handle inbound FCL shipments eligible for Direct Port Delivery, which must be delivered to the importer's premises within 48 hours of landing.

This means no inbound LCL shipments, loose cargo, or containers requiring de-stuffing/CFS examination until a CFS is built for the port. Similar conditions have been imposed on outbound shipments as well.

August 18 will also see the CM flag off the first export container from the Vizhinjam Port, officially starting EXIM operations. During this initial phase, 70 per cent of the port's cargo handled will still be transshipments, while the remainder will be gateway (EXIM) cargo.

In about four years, a railway line built to integrate the port with the state's main railway lines will also be completed, further boosting EXIM operations at the port. Such plans are a key part of the state government's ₹400 crore 'Mission Samudra' plan to transform Kerala into a port state.