The Kerala Maritime Board (KMB) has proposed developing the Vizhinjam minor port under a public-private partnership (PPP) model to integrate its facilities with the adjoining Vizhinjam International Seaport Ltd. This initiative aims to create a unified cargo logistics ecosystem, capitalizing on the rapid expansion of the international port. The proposal has been submitted to the state government and is awaiting approval.
Interim Arrangement for Warehousing
As the PPP project is expected to take nearly a year to materialize, the maritime board has initiated an interim arrangement by inviting private firms to lease its existing warehouse infrastructure near the minor port. The tender, issued by the chief executive officer of KMB on June 10, invites proposals from competent parties to operate the godown facility for warehousing, logistics, and other permitted commercial activities.
Lease Terms and Bidding Process
According to the tender notification, the warehouse will be leased to the successful bidder for a period of three years under a long-term lease arrangement. The facility will be used for cargo handling, storage, and value-added logistics services associated with the Vizhinjam international seaport. Interested bidders must submit their proposals through the state's e-tender portal by 4 pm on July 25. Bids will be evaluated based on eligibility criteria and conditions specified in the tender document.
Monetizing Idle Assets
KMB chairman N S Pillai stated that the tender was floated as an interim measure to monetize the board's assets, as the minor port has remained largely idle, generating no revenue. "We are set to utilize the business opportunity created by the success of the Adani-operated Vizhinjam port. A lot of inquiries are coming. So we decided to capitalize on that by giving our resources to investors on lease. Once it becomes operational, cargo can be ferried from the KMB port to the international port through barges or small ships," Pillai told TOI.
Private Sector Interest
Pillai revealed that several private companies have already approached the board expressing interest in operating the minor port. The PPP proposal submitted to the government is intended as a permanent solution, while the current tender serves as an interim arrangement until the larger project is implemented.
Vizhinjam International Port Growth
The move comes at a time when Vizhinjam international seaport is witnessing unprecedented growth. Within just 18 months of operations, the port has crossed the two-million TEU milestone, becoming the fastest Indian port to achieve both one million and two million TEUs. The port has handled more than 970 vessels, including several of the world's largest container ships. Expansion works aimed at increasing its annual handling capacity are progressing, and gateway cargo operations have commenced, complementing its existing transshipment business. This has created significant demand for warehousing, logistics, and multimodal transport infrastructure around the port.
