The Vizhinjam International Deepwater Multipurpose Port, India’s first transhipment hub, is expected to reduce India’s dependence on Colombo, Dubai and Singapore, thereby driving down logistical costs for Indian manufacturers by 30-40%, Adani Ports and Special Economic Zone (APSEZ) has said in a statement shared with Sputnik India.
The reduction in logistical costs would directly boost India’s “export competitiveness”, Adani Ports said.
The operator noted that being located just 10 nautical miles from the ‘International East-West Shipping Route’ in the Arabian Sea/Indian Ocean Region (IOR), the port is expected to become a “pivotal transhipment hub” in coming years.
The tender for developing the Arabian Sea port was awarded to Adani Ports by the Kerala state government on a 40-year build, operate and transfer (BOT) agreement in 2015. The BOT pact, signed between Adani Ports and the Kerala government, is subject to a 20-year extension.
Developed at an estimated cost of $1.05 billion, the port has been majorly funded by the Kerala state government. The Adani group has already invested close to $500 million in the project, with plans to invest an additional $2.3 billion for future expansion, according to the operator.
In terms of infrastructure, the port has a natural deep draft of 18 metres, doing away with the need for capital dredging.
“Vizhinjam can leverage its natural depth to host even ultra-large next-gen container ships requiring drafts of over 20 metres. It features India’s tallest ship-to-shore cranes and is equipped with Artificial Intelligence (AI)-powered vessel traffic management systems,” the company statement said.
The company said that the port’s capacity would be increased to 5 million Twenty-foot Equivalent Units (TEUs) by 2028.
The port officially commenced trial operations in July 2024, when it received its first mothership called San Fernando.
The Indian port has already hosted world’s biggest Ultra Large Crude Carriers (ULCC)—MSC Claude Girard (September 2024) and MSC Türkiye (April 2025), which are also among the largest vessels to pay a call on any Indian port.
The company said that the port has already handled more than 280 vessels and over 600,000 TEUs of cargo till date, generating significant Goods and Services Tax (GST) revenue for the governments of the state and India.