Can Vizhinjam Port become 'Vande Bharat' of shipping? EXIM ops to start from August 18, but bottlenecks loom

The Vizhinjam International Seaport will officially launch its export-import (EXIM) operations on August 18. Kerala Chief Minister V.D. Satheesan will flag off the first export container at a ceremony scheduled for tomorrow, with Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, as the chief guest.

The event will also mark the formal transition of the port from a transshipment hub into what the state government is positioning as one of India’s most important commercial gateways.

The ceremony will also see the announcement and official launch of the Satheesan government’s ambitious ‘Mission Samudra’, a port-led industrial and logistics development initiative built around the vision of a ‘Port City’. The project seeks to position Vizhinjam as the anchor of a wider Vizhinjam Maritime Economic Region, spanning eight industrial clusters, three new cities, and Kerala’s 600-km coastline.

The mission is backed by a ₹400-crore catalytic fund across three verticals—Ports and Connectivity, Logistics Development, and Clusters and Cities—along with a horizontal component for programme management and capacity building. The initiative comprises 14 sub-schemes in all.

The move to full-fledged EXIM operations follows the successful completion of a trial run involving the port’s first export container, which was shipped to Valencia, Spain.

Expectations vs reality

The Kerala government expects exporters who have so far shipped cargo to Western markets via Colombo, Singapore and Dubai to be able to send consignments directly from Vizhinjam.

Sreekumar K. Nair, CEO of Vizhinjam International Seaport Limited (VISL), the Kerala government’s implementing agency for the Vizhinjam International Seaport project, says EXIM operations will be demand-driven.

“If I am an exporter, I need to have either a cost advantage or a time advantage. Vizhinjam offers both. Compared with any other Indian port, the transit time from Vizhinjam to any part of the world will be just 50 per cent of that from any other Indian port,” he says.

“If you are shipping processed shrimp from Vallarpadam [in Kochi] to New York today, it takes more than two months. From Vizhinjam, it will take just less than a month.”

Nair describes Vizhinjam as the “Vande Bharat” of global maritime shipping, arguing that its location close to major international shipping routes gives it a significant advantage over other Indian ports.

The Kerala government expects small and medium enterprises in sectors such as agricultural produce, spices, cashew, marine products, handloom and textiles to gain access to new overseas markets once EXIM operations begin at the port.

The state also expects the commencement of EXIM services to spur the growth of warehousing, cold storage, container freight stations, and logistics parks in the region, generating thousands of direct and indirect jobs in Thiruvananthapuram and neighbouring districts.

However, the port’s EXIM ambitions face a classic chicken-and-egg problem: the growth of cargo volumes depends on the availability of a wider logistics ecosystem, while investment in that ecosystem is itself likely to depend on the growth of cargo volumes. Adding to the challenge are connectivity constraints.

Currently, the port is connected to National Highway 66 through a temporary approach road. A permanent cloverleaf interchange is planned at the junction where the port road meets NH66. However, that interchange is yet to be constructed.

“We haven't reached the stage of having that cloverleaf yet because the decision on the Outer Ring Road was delayed. The execution of the Trivandrum Outer Ring Road has been delayed indefinitely,” Nair says.

The Trivandrum Outer Ring Road (ORR), also known as the Vizhinjam-Navaikulam Outer Ring Road or NH866, is planned as a greenfield, access-controlled highway connecting Vizhinjam port to NH66 at Navaikulam. It is intended to provide a high-capacity link for port-related cargo and container traffic while reducing the movement of heavy vehicles through Thiruvananthapuram city.

The proposed corridor is also expected to serve as the backbone of the Outer Area Growth Corridor (OAGC) under the Capital Region Development Programme, opening up peripheral areas for industrial, logistics, commercial and other economic activity.

On August 12, CPI(M) MP John Brittas raised questions in Parliament about the current construction status of the Thiruvananthapuram Outer Ring Road project, its original completion timeframe, the revised target for completion, and the specific bottlenecks currently hindering its progress.

In response, the Union Ministry of Road Transport and Highways said that a revised Detailed Project Report (DPR) had been prepared for the greenfield National Highway connecting Vizhinjam and Navaikulam. The ministry said the final investment decision would depend on the project meeting standard criteria, traffic density, and its synergy with the PM Gati Shakti programme.

The government also stated that there were currently no bottlenecks affecting the project, while noting that statutory clearances—particularly environmental clearances—were still in the process of being obtained.

Notably, attracting exporters already accustomed to using established gateways will require a developed land-side logistics ecosystem before they can shift their cargo flows to Vizhinjam.

The government recognises that this shift cannot happen overnight and that the logistics ecosystem around the port will have to develop rapidly. 

Land availability and acquisition, however, remain significant challenges. Officials note that the high cost of land acquisition in Kerala makes it difficult to offer land to potential investors at commercially viable rates.

One immediate solution being explored is the use of government-owned land for logistics infrastructure. The first CFS is expected to come up on around 5.5 acres of land belonging to the Trivandrum Spinning Mills, with a facility under the Kerala State Industrial Enterprises (KSIE) likely to begin operations within the next three to four months.

The Kerala government sees the Vizhinjam port as the key to transforming the state from a “consumer state” into a major manufacturing and export hub in Asia. However, connectivity and logistics remain critical bottlenecks that must be addressed if the port is to emerge as a major gateway for Indian trade, with the state expecting a significant share of large-scale exports from India to eventually be routed through Vizhinjam.