Lack of port-driven industrial ecosystem deprives Kerala from tapping Vizhinjam’s potential

Even as the Vizhinjam International Seaport here continues to raise its benchmark performance in terms of container throughput, the State is miserably lagging in setting up a Vizhinjam-driven industrial ecosystem, which is essential for tapping the potential of one of the largest global transshipment hubs.

According to the latest statistics, the seaport has once again emerged as the top-performing port on the east and south coasts of India, registering a container throughput of 1.21 lakh twenty-foot equivalent units (TEUs) in December 2025.

This marks the highest-ever monthly container handling volume achieved by Vizhinjam since the commencement of its commercial operations in December 2024. The port also handled around 686 container vessels, including 51 ultra-large container carriers in the world, handling a total cargo of 14.6 lakh TEUs.

The emergence of Vizhinjam as a major transshipment hub has started to attract big players to Kerala, although no major breakthrough has been achieved to date in terms of setting up an industrial ecosystem based in the State.

In a social media post, Sanjay Swarup, CMD, Container Corporation of India Ltd. (CONCOR), announced that CONCOR held a strategic meeting with the Adani Vizhinjam International Seaport authorities. The discussions focused on business development opportunities, synergising port-led infrastructure with CONCOR’s robust multimodal logistics network, and unlocking new value-driven supply chain solutions for EXIM and domestic cargo. The State, however, is lagging behind in terms of acquiring land from private owners and handing them over to the key players interested in investing in the State.

According to sources, the State government has received potential interest for 500 acres from potential investors, but no major breakthrough has been achieved so far in terms of providing land. A year after the commercial operation of the port, the State couldn’t find land to set up an empty container yard near the vicinity of the port, one of the main prerequisites of a transshipment hub.

A trailer truck terminal has yet to come up in the region, even as neighbouring States like Tamil Nadu and Karnataka continue to handle around 2 million TEUs of gateway cargo each annually. On the other hand, Kerala has been handling only close to 1.5 lakh TEUs due to the absence of industries and a port-driven industrial ecosystem, sources said.

While the Vizhinjam seaport can connect to around 107 leading transshipment hubs across the globe, a major advantage that no other port can claim, the absence of an industrial secosystem is depriving the State of its potential, according to government officials.