2. The customs notification also lays down conditions for export and import operations. At present, no container freight station (CFS) has been attached to or designated for Vizhinjam.
3. Accordingly, the notification says the port will handle only the direct movement of full containers. Loose cargo or containers requiring de-stuffing or CFS examination will not be allowed. Imported containers must be moved directly from the terminal to the importer’s premises within 48 hours of landing. For exports, the port will accept only fully loaded containers that are ready for shipment.
4. Since commencing operations in July 2024, Vizhinjam, situated on Kerala coast, has functioned solely as a transshipment hub, handling container ships and transferring containers from one vessel to another.
5. Built at a cost of around Rs 8,900 crore under public-private partnership (PPP) mode, the transshipment port is operated by Adani Ports and SEZ Ltd, which holds a 28.9 per cent stake. The Government of Kerala owns a majority 61.5 per cent stake, while the Union government holds 9.6 per cent.
What does Vizhinjam offer to India’s maritime trade?
6. The Vizhinjam port in the Arabian Sea is India’s strategic response to over-reliance on foreign ports for transshipment cargo. India now has 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.
7. 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.
8. 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. Its natural advantages could lead to long-term savings on maintenance and operations, while boosting India’s competitiveness in global trade.
9. 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.
Vizhinjam port location with respect to International East-West shipping route. (Map Source: Feasibility report/Vizhinjam International seaport Ltd)
10. Owing to these advantages, Vizhinjam port has emerged as one of the world’s fastest-growing container ports. Within 18 months of commencing commercial operations, it handled 2 million TEUs (twenty-foot equivalent units) of container traffic. Currently equipped to handle 1 million containers per annum, the port is set to expand by an additional 6.4 million over two more phases.
11. The opening of the seaport for direct export and import marks another milestone for Vizhinjam, which has already handled some of the world’s largest container ships. With the recent announcement, its gradual transformation into a full-fledged export-import gateway is expected to reduce logistics costs, improve supply chain efficiency, enhance exporters’ competitiveness, attract investment and generate employment.
While a customs port facilitates a country’s exports and imports, a transshipment port connects global shipping routes. Vizhinjam is now positioned to do both. (Infographic source: AI generated)
Why is there a strategic need for a transshipment hub in India?
12. 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.
13. Until recently, India lacked a full-fledged deepwater container transshipment port. As a result, nearly 75 per cent of the country’s transshipment cargo was routed through foreign hubs such as Colombo (Sri Lanka), Singapore, and Jebel Ali (UAE).
14. 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.
15. Increasing self-reliance in maritime logistics is also expected to mitigate the impact of geopolitical shocks on India’s supply chains.
BEYOND THE NUGGET: India’s big push for port-led growth and shipping industry
1.India’s development trajectory has increasingly recognised port-led growth and maritime infrastructure as catalysts for economic expansion. The Sagarmala Programme seeks to modernise ports, enhance connectivity and promote coastal and inland waterways through 839 projects with an estimated outlay of ₹5.79 lakh crore.
2. This was followed by Maritime India Vision 2030, proposing 150 initiatives involving investments of ₹3–3.5 lakh crore, with potential to generate nearly 20 lakh jobs and annual revenues of approximately ₹20,000 crore.
3. Building upon these initiatives, the Maritime Amrit Kaal Vision 2047 outlines more than 300 initiatives across 11 thematic areas, envisaging investments of ₹7–8.5 lakh crore and employment generation for 3.5–4 crore individuals. Taken together, these programmes reflect a projected investment of nearly US$0.9 trillion in India’s maritime sector.
4. Recognising shipbuilding as a strategic industry, the Government approved a comprehensive ₹69,725 crore package in September 2025 focusing on the Shipbuilding Financial Assistance Scheme, Maritime Development Fund, and Shipbuilding Development Scheme to revitalise the shipbuilding ecosystem.
5. The initiative adopts a four-pillar strategy – strengthening domestic shipbuilding capacity, facilitating long-term financing mechanisms, promoting both greenfield and brownfield shipyard development, and enhancing technical skills alongside legal and policy reforms. These measures aim to expand India’s shipbuilding capacity to approximately 4.5 million gross tonnes.
6. 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.
Post Read Question
In what way(s) does the Vizhinjam International Seaport represent a structural shift in India’s maritime trade and logistics policy? (UPSC CSE, 2026)
1. By functioning exclusively as a domestic cargo hub to reduce reliance on coastal shipping and eliminate the need for foreign collaborations.
2. By focusing primarily on passenger cruise tourism and heritage shipping to increase Kerala’s profile as a maritime heritage destination.
3. By leveraging its natural deep draft and strategic location to reduce dependence on foreign trans shipment ports, enhance revenue retention, and reposition India in regional maritime trade.
Select the answer using the code given below:
(a) 1 only
(b) 1 and 2
(c) 2 and 3
(d) 3 only
Answer Key
(d)
(Sources: Kerala’s Vizhinjam set to become latest gateway for India’s exports, imports, PM Modi to inaugurate Vizhinjam port: significance of India’s first transshipment hub)
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Vizhinjam Port's deep natural draft and strategic location position it as a key node in India's maritime ambitions and a gateway to global container trade. (Image source: AI generated) 
Vizhinjam port location with respect to International East-West shipping route. (Map Source: Feasibility report/Vizhinjam International seaport Ltd)
While a customs port facilitates a country’s exports and imports, a transshipment port connects global shipping routes. Vizhinjam is now positioned to do both. (Infographic source: AI generated)
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