PM Modi inaugurates Vizhinjam Port to boost India's global maritime trade power

Team Finance Saathi

    02/May/2025

What's covered under the Article:

  1. PM Modi inaugurates Vizhinjam Port in Kerala, India’s first deepwater container transhipment hub, enhancing trade potential.

  2. The ₹8,867 crore port aims to reduce foreign port dependency and strengthen India’s global maritime connectivity.

  3. Political tensions emerge as opposition leaders allege exclusion of key contributors from inauguration ceremony.

Prime Minister Narendra Modi inaugurated the Vizhinjam International Deepwater Multipurpose Seaport in Kerala on May 2, 2025, marking a transformative step in India's port infrastructure. The port is not just another terminal — it is India’s first dedicated container transhipment port, developed with the intent to position the country as a key global maritime player under the ‘Viksit Bharat’ vision.

Vizhinjam port’s inauguration signifies a major advancement in India’s logistics landscape, potentially disrupting long-standing trade dependencies on foreign ports like Colombo, Singapore, and Port Klang.

A Project Years in the Making

This mega infrastructure project was launched in December 2015, with development undertaken by Adani Ports and Special Economic Zone Ltd (APSEZ) in collaboration with the Kerala government, under a public-private partnership (PPP) model.

The port was commercially commissioned in December 2023, after rigorous trial operations. Built at a total cost of ₹8,867 crore, it is designed to accommodate ultra-large container ships, which many Indian ports currently cannot handle due to depth and logistical limitations.

A Game-Changer in Cargo Transhipment

India has long relied on international ports like Colombo and Singapore to handle a significant portion of its container transhipment cargo. Vizhinjam aims to change that. Its strategic location, merely 10 nautical miles from the international east-west shipping route, makes it ideally placed to capture transhipment traffic.

By localising this process, Indian exporters and importers stand to save heavily on logistics costs, turnaround time, and fuel, while improving efficiency and reducing trade bottlenecks.

Economic and Regional Rebalancing

The commissioning of the port rebalances India’s port ecosystem, which has historically been concentrated in Gujarat and Maharashtra. With Vizhinjam now operational, Kerala emerges as a significant logistics hub, likely to attract ancillary industries, generate employment, and enhance coastal shipping in the southern region.

This regional shift also diversifies India’s maritime dependence, making its trade routes and ports more resilient and geographically inclusive.

Infrastructure Features and Capabilities

The port is designed with cutting-edge technology and world-class specifications:

  • Natural depth of over 18 meters, making it suitable for large container vessels.

  • A breakwater of 3.1 km, protecting it from turbulent seas.

  • Smart port systems to enhance automation, customs integration, and tracking.

  • Eco-friendly practices, including erosion control and marine biodiversity protection.

Once fully operational, the port is expected to handle over 1 million TEUs (Twenty-foot Equivalent Units) in its initial phase and significantly more in the next development phases.

Viksit Bharat Vision in Action

The Vizhinjam port aligns with India’s larger developmental agenda under ‘Viksit Bharat @2047’, aiming to transform the country into a developed economy with modern infrastructure. It also ties into India’s Sagarmala Programme, which focuses on port-led development and maritime connectivity.

By cutting logistical costs and improving domestic trade efficiency, the port supports India’s efforts to become a global manufacturing and export powerhouse.

Political Undercurrents and Opposition Criticism

Despite its national importance, the inauguration has not been free of controversy. The Congress-led United Democratic Front (UDF) has criticised the central and state governments for not acknowledging key figures behind the project’s inception.

Former Chief Minister Oomen Chandy, who initiated the project and laid its foundation stone in 2015, was reportedly excluded from the official credits. Similarly, Leader of Opposition V D Satheesan was also absent from the guest list, raising accusations of political favouritism and selective recognition.

This political exclusion was highlighted by several news agencies including PTI, stating that major contributions to the project from non-ruling parties were overlooked.

A Grand Reception and Multi-State Tour

Prime Minister Modi’s arrival in Kerala on May 1 was met with official protocol. He was welcomed by Chief Minister Pinarayi Vijayan, Minister of State George Kurian, and Congress MP Shashi Tharoor.

Following the Vizhinjam event, PM Modi is scheduled to travel to Amaravati, Andhra Pradesh, to lay foundation stones and inaugurate projects worth over ₹58,000 crore, further underlining the central government’s development push across key sectors.

Economic and Trade Outlook

Experts believe that Vizhinjam will not just ease foreign dependency but also:

  • Increase India’s cargo-handling capacity

  • Make India a preferred docking point for global shipping lines

  • Attract foreign investment in logistics and warehousing

  • Strengthen India’s global trade competitiveness

The port is expected to bring down container handling costs by 25-30% and cut transhipment time by nearly 40% compared to current practices involving Colombo or Singapore.

Job Creation and Statewide Impact

Kerala, traditionally not known for its industrial base, will benefit from increased economic activity in logistics, ship repair, storage, customs handling, and transport. Thousands of direct and indirect jobs are expected to be created, and local businesses may see a spike in demand for support services.

Skill development initiatives may also receive a boost as more trained manpower will be needed to operate and manage port operations and associated supply chains.


Conclusion: India’s Gateway to Global Trade

With the inauguration of the Vizhinjam International Port, India takes a definitive step toward becoming a self-reliant and globally integrated maritime economy. While the event has stirred political controversy, the economic, strategic, and logistic implications are vast and undeniable.

As international shipping patterns evolve and India stakes its claim in global commerce, Vizhinjam may very well emerge as the southern sentinel of India's trade future, fulfilling both economic aspirations and the strategic vision of Viksit Bharat.

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