Kerala Government Greenlights Major Logistics Infrastructure Projects at Vizhinjam
In a significant move aimed at capitalizing on the industrial and logistics potential of the Vizhinjam port, the Kerala state government has granted in-principle approval for the establishment of multimodal logistics parks (MMLPs) by three central public sector undertakings. The projects will be undertaken by the Container Corporation of India (Concor), Indian Oil Corporation Limited (IOC), and the Central Warehousing Corporation (CWC).
Official Orders and Upcoming Agreements
The ports department issued formal orders for Concor and CWC last week, while the order for IOC was released on January 14. Memoranda of Understanding (MoUs) with all three central PSUs are anticipated to be signed later this month, with Chief Minister Pinarayi Vijayan expected to be present at the ceremony, according to official sources.
Land Allocation and Strategic Locations
The Vizhinjam International Seaport Limited (VISL), the state-owned entity managing the transshipment port project, has already pinpointed specific land parcels for these proposed facilities.
- Concor has been earmarked approximately 25 acres at Kottukal, situated close to the port, for developing a multimodal logistics park. Land costs in this area are estimated at Rs 7–8 crore per acre.
- CWC has been identified around 50 acres at Amaravila near Neyyattinkara. This location is strategically positioned along the Thiruvananthapuram–Nagercoil railway line, ideal for a large warehouse and logistics complex, with acquisition costs estimated at Rs 4–4.5 crore per acre.
- IOC is proposed to be allotted about 20 acres in the vicinity of the port, with an additional 20 acres expected to be made available within a year.
Project Details and Development Plans
According to the government order, the Managing Director of VISL has been authorized to negotiate the terms and conditions of long-term land lease agreements with Concor and to sign a non-binding MoU, pending final government approval. Concor, a PSU under the Ministry of Railways, had initially requested up to 100 acres near Vizhinjam for its MMLP. After discussions, VISL and Concor jointly selected a more compact 25-acre site at Kottukal.
The land will be acquired by VISL and leased to Concor, which will then develop the necessary infrastructure and secure statutory clearances, with facilitation from VISL.
Similarly, CWC, a statutory PSU under the Union government, proposed allocation of up to 50 acres near a railway line to enhance cargo-handling infrastructure linked to the transshipment hub. VISL identified around 50 acres along the existing railway corridor at Amaravila for this project.
IOC has expressed interest in establishing marine fuel bunkering facilities at Vizhinjam in accordance with international standards. The company sought 30–40 acres with access to designated bunker jetties. VISL has proposed to lease 20 acres on a long-term basis of 30–40 years in the initial phase. IOC will develop tank farms and related infrastructure and obtain the required clearances.
Strategic Impact and Future Prospects
A senior VISL official highlighted that these projects will serve as anchor investments, attracting more logistics, shipping, and industrial players to the Vizhinjam ecosystem. This initiative is expected to significantly boost the port-led industrial and logistics framework, fostering economic growth and development in the region.
The approval of these multimodal logistics parks marks a pivotal step in leveraging the Vizhinjam port's capabilities, positioning it as a key hub for maritime and logistics activities in South India.
