Nod for logistics park, bunkering facility at Vizhinjam

The Kerala government has granted permission to establish a Multi-Modal Logistics Park (MMLP) near the Vizhinjam international seaport. The Container Corporation of India Ltd. (CONCOR), one of the largest public sector undertakings in the logistics sector with a pan-India presence across ports and Container Freight Station (CFS)/MMLP operations, will set up the facility at Vizhinjam. .

The State has also approved proposals for establishing a marine fuel bunkering facility of international standards at Vizhinjam by the Indian Oil Corporation Limited (IOC), as well as a warehouse and logistics complex by the Central Warehousing Corporation (CWC) near the seaport. Vizhinjam International Seaport Limited (VISL) has been entrusted with negotiating the terms and conditions of the long-term lease agreements with these companies and executing non-binding Memoranda of Understanding (MoUs) with them.

State government sources told The Hindu that CONCOR has sought up to 100 acres near the port for the MMLP. In the initial phase, however, VISL and CONCOR have identified approximately 25 acres at Kottukal for the project, where the estimated land cost ranges between ₹7 crore and ₹8 crore per acre. The State will lease the acquired land to CONCOR at a monthly rent of ₹1.5 lakh per acre, with an annual appreciation of 5%.

The land will be handed over to CONCOR after acquisition by VISL, with the condition that infrastructure development and statutory clearances will be undertaken by CONCOR, facilitated by VISL. The agreement will also stipulate that 2% of the total operational revenue generated by the MMLP will be paid to the State within 15 days of the end of each month.

In the case of CWC, the company requires around 50 acres to establish a large warehouse and logistics complex. Land has been identified at Amaravila near Neyyattinkara, close to the Thiruvananthapuram-Nagercoil railway line, where the estimated land cost is ₹4 crore to ₹5 crore per acre. The proposed facility is expected to strengthen cargo-handling infrastructure linked to the transshipment hub.

IOC has sought 40 acres with access to designated bunker jetties near the port. In the first phase, 20 acres will be allotted, where the company will develop tank farms and related infrastructure for bunkering operations.

Approximately 800 acres has been identified for developing a port-related industrial ecosystem in and around the seaport. However, State clearance is required, as the land must be acquired by State government agencies before being handed over to investors.

The Vizhinjam seaport has made significant strides in the transshipment sector, handling 670 vessels and transshipping 1.34 million TEUs as of December 31, 2025. Meanwhile, the port concessionaire, AVPPL, is undertaking capacity augmentation works scheduled for completion by December 2028. Upon completion, the port’s annual capacity will increase from the existing 1.50 million TEUs to 5.7 million TEUs. The expansion also includes the development of two multipurpose berths with a combined length of 1,220 m.