PM Modi to inaugurate Vizhinjam port: significance of India’s first transshipment hub

In April, the Vizhinjam International Seaport, which began limited operations last year, received MSC Türkiye—one of the world’s largest cargo ships, with a capacity of over 24,000 containers—making it the first port in India to handle a vessel of that size. Alongside being the only transshipment hub in the Indian subcontinent, the port is close to the international shipping routes, and is strategically located on the Indian coastline. It has a natural draft of around 20 metres.

Strategic need for a transshipment hub in India

A transshipment port includes terminals, where cargo containers are shifted from one vessel to another before they reach their final destination. Countries with robust global trade networks tend to use such ports to efficiently process large amounts of international cargo.

Until now, India lacked a full-fledged deepwater container transshipment port. With no infrastructure to handle large vessels, nearly 75 per cent of its transshipment cargo has been routed through foreign ports such as Colombo, Singapore, and Jebel Ali in the UAE.

The reliance on foreign transshipment terminals not only results in longer transit times and potential delays, it also costs domestic traders an additional $80 to $100 per container. Additionally, India is estimated to be losing between $200-220 million a year in potential income from servicing its own cargo due to the transshipment issue.

Increasing self-reliance in maritime logistics is also expected to mitigate the impact of geopolitical shocks on India’s supply chains.

Advantages offered by Vizhinjam port

The Vizhinjam port in the Arabian Sea is India’s strategic response to over-reliance on foreign ports for transshipment cargo. With its commissioning, India will have a deepwater port near international shipping routes capable of receiving huge “mother vessels”, carrying as many as 20,000 containers (TEUs). Cargo from mother vessels can be offloaded onto smaller ships headed to other ports in India.

Its proximity to the congested east-west international shipping lane just 10 nautical miles away puts it in a prime location to become a major transshipment hub for the Indian subcontinent.

Vizhinjam’s biggest advantage is its natural depth of 18 to 20 metres only a kilometre away from the shore—deep enough for the world’s largest cargo vessels to dock without dredging, a costly and environmentally disruptive process used to deepen shallow ports.

Unlike most Indian ports, Vizhinjam experiences minimal sand movement along the coast (littoral drift), which reduces maintenance costs. The onshore connectivity is also a big advantage—it’s only 2 km from a national highway, 12 km from a main rail line, and 15 km from Trivandrum airport, so cargo can be moved very easily across India.

Lowering logistical costs

Currently equipped to handle 1 million containers per annum, Vizhinjam port is set to expand by an additional 6.4 million over two more phases. Operated by Adani Ports and SEZ Ltd, which holds a 28.9 per cent stake, the project will further cement the company’s position as India’s leading private player in maritime logistics. The Government of Kerala owns a majority 61.5 per cent stake, while the Union government holds 9.6 per cent.

Once fully operational, Vizhinjam is expected to help India capture a larger share of its own transshipment trade, lower logistics costs, and enhance shipping efficiency. Its natural advantages could also lead to long-term savings on maintenance and operations, while boosting India’s competitiveness in global trade.

India is also developing a deepwater port at Vadhvan in Maharashtra’s Palghar district, where construction began in August 2024. Another mega transshipment port is proposed on Great Nicobar Island in the Andaman and Nicobar Islands, currently awaiting regulatory clearances.

Currently, India has 13 major ports and 217 non-major ports, including private ports like Adani’s Mundra port and the Krishnapatnam port. Navi Mumbai’s Jawaharlal Nehru Port and the Mundra port are the largest container ports in the country, each handling upwards of 7 million containers per annum.