KMB to develop minor port at Vizhinjam, invites bids

Thiruvananthapuram: Seeking to tap the growing business opportunities generated by the rapid expansion of the Vizhinjam International Seaport Ltd, 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 international port and create a unified cargo logistics ecosystem.The proposal has been submitted to the state govt and is awaiting approval. As the PPP project is expected to take nearly a year to materialise, the maritime board has initiated an interim arrangement by inviting private firms to lease its existing warehouse infrastructure near the minor port for cargo-related operations linked to the international port.The tender, issued by the chief executive officer of KMB on June 10, invites proposals from competent and eligible parties meeting the prescribed qualification criteria to operate the godown facility for warehousing, logistics and other permitted commercial activities.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 to facilitate cargo handling, storage and value-added logistics services associated with Vizhinjam international seaport. The initiative is expected to strengthen the logistics infrastructure around the port as export-import and transshipment cargo volumes continue to rise.

Interested bidders have been directed to submit their proposals through the state’s e-tender portal on or before 4pm on July 25. The bids will be evaluated in accordance with the eligibility criteria and conditions specified in the tender document.KMB chairman N S Pillai said 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 for either the board or the state govt.“We are set to utilise the business opportunity created by the success of the Adani-operated Vizhinjam port. A lot of inquiries are coming. So we decided to capitalise 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.He said several private companies had already approached the board expressing interest in operating the minor port.

“The PPP proposal submitted to the govt is intended as a permanent solution. The tender we have invited now is only an interim arrangement until the larger project is implemented,” he added.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, while expansion works aimed at increasing its annual handling capacity are progressing.Gateway cargo operations have also commenced, complementing its existing transshipment business and creating significant demand for warehousing, logistics and multimodal transport infrastructure around the port.