Adani Commits ₹16,000 Crore for Vizhinjam Port Phase 2 Expansion

Adani Ports and Special Economic Zone Ltd (APSEZ) has officially launched the next phase of growth for the Vizhinjam International Seaport with a committed investment of ₹16,000 crore. The inauguration ceremony for the Phase 2 development, attended by Kerala Chief Minister Pinarayi Vijayan and APSEZ Managing Director Karan Adani, marks a significant step towards establishing the port as the largest transshipment hub in the Indian subcontinent. This expansion builds upon the port's successful initial operations and represents the largest private investment in Kerala's history.

Building on a Strong Foundation

Since commencing commercial operations in December 2024, Vizhinjam Port has rapidly demonstrated its strategic value. In just 15 months, it became the fastest Indian port to handle one million TEUs (Twenty-foot Equivalent Units), a milestone that placed Kerala firmly on the global shipping map. In its first full year, the port managed 1.32 million TEUs and handled 615 vessels. Its natural deep draft, ranging from 18 to 20 meters, has enabled it to service over 50 Ultra Large Container Vessels (ULCVs), including the MSC IRINA, one of the world's largest container ships. This capability distinguishes Vizhinjam from many other ports in the region.

Technological and Operational Edge

Vizhinjam's early success is also attributed to its advanced infrastructure. As India's first semi-automated container port, it leverages technology to ensure efficient and safe operations. The port has also set social benchmarks by being the first in the country to deploy women as automated crane operators. A state-of-the-art Vessel Traffic Management System (VTMS) digitally monitors all vessel and yard movements, enhancing operational predictability and safety. These technological advancements, combined with its strategic location near major east-west shipping lanes, have made it a competitive alternative to established regional hubs like Colombo, Singapore, and Port Klang.

Phase 2: A Quantum Leap in Capacity

The ₹16,000 crore investment for Phase 2 is designed to scale up the port's infrastructure and capacity significantly. A core component of this plan, valued at approximately ₹10,000 crore, focuses on major construction and equipment upgrades. The expansion will extend the container berth length from 800 meters to 2,000 meters, allowing multiple large vessels to be serviced simultaneously. The breakwater will also be extended by 920 meters to a total length of about 3,900 meters, reaching a depth of 21 meters to provide enhanced protection and operational stability.

Key Expansion Metrics

The planned upgrades will transform the port's operational capabilities. The following table summarizes the key changes anticipated upon completion of Phase 2.

Advanced Automation and Green Initiatives

Phase 2 will introduce a new level of automation to maintain Vizhinjam's technological leadership. The project includes the installation of 21 automated ship-to-shore (STS) cranes and 45 automated Cantilever Rail-Mounted Gantry (CMRG) cranes. A new rail handling yard will also be constructed to improve inland connectivity. In line with sustainability goals, the expansion will feature green equipment, including electric vehicle charging stations, and critical facilities like a sewage treatment plant and an upgraded electrical substation.

Economic Impact and Cooperative Federalism

This project is a cornerstone of the Adani Group's cumulative ₹30,000 crore investment commitment in Kerala. Speaking at the inauguration, Karan Adani highlighted the project as a powerful example of cooperative federalism, acknowledging the consistent support from both the state government led by Chief Minister Pinarayi Vijayan and opposition leaders. The expansion is expected to act as a catalyst for port-led industrialization, creating significant employment opportunities and strengthening Kerala's position as a global logistics destination.

A New Hub on the Global Maritime Map

Chief Minister Pinarayi Vijayan stated that the expansion will elevate Vizhinjam from a national transshipment terminal to an international hub serving ports across the Middle East and Africa. By scaling its capacity to 5.7 million TEUs by 2029, Vizhinjam is poised to become India’s largest and most advanced transshipment port. This development is crucial for India's maritime strategy, as it aims to capture a larger share of the global transshipment traffic that is currently handled by foreign ports.

Conclusion

The ₹16,000 crore Phase 2 expansion of Vizhinjam Port is a landmark project that promises to reshape India's maritime infrastructure. By leveraging its natural advantages with cutting-edge technology and a massive increase in capacity, the port is on track to become a globally competitive transshipment hub. With a clear timeline for completion by 2029, the project signifies a major boost for the economy of Kerala and a strategic asset for India's growing role in international trade.