Kerala to upgrade Vizhinjam port for ₹2,000cr, inks MoUs
What's the story
The Kerala government has signed memoranda of understanding (MoUs) with three central public sector firms to develop a ₹2,000 crore logistics master plan at the Vizhinjam International Seaport. The agreements were signed in the Legislative Assembly Building in Thiruvananthapuram today. Chief Minister Pinarayi Vijayan had presided over the signing ceremony.
Transformation plan
Strategic shift for Vizhinjam port
The MoUs mark a strategic shift to turn the Vizhinjam port into an all-inclusive economic development hub. This is part of the government's plan to keep critical infrastructure under public sector control while operating on a Public-Private Partnership (PPP) model. The partnership includes state-owned Vizhinjam International Seaport Limited (VISL) and three central PSUs: Indian Oil Corporation Limited (IOCL), Container Corporation of India Ltd (CONCOR), and Central Warehousing Corporation (CWC).
Fair pricing
Investment split into 3 strategic sectors
The government hopes that by bringing these entities together, it can prevent cargo handling monopolization, ensure fair pricing for traders, and protect national maritime interests. The ₹2,000 crore investment is split into three strategic sectors. IOCL will invest around ₹700 crore to set up large-scale bunkering facilities at Vizhinjam port. This would make the port a major energy hub in the Indian Ocean region.
Infrastructure
Infrastructure for faster cargo movement
CONCOR will invest around ₹600 crore to develop rail-linked infrastructure such as Inland Container Depots (ICDs) and Container Freight Stations (CFSs). This is part of the government's plan for faster cargo movement across India. Meanwhile, CWC will invest around ₹700 crore to build a multi-modal logistics park on nearly 50 acres. The facility will include cold storage and export-oriented units, with no financial burden on the state government.