Vizhinjam Port’s ₹10,000 Cr Phase 2 Expansion to Increase Container Capacity, Strengthen Port Ecosystem by 2028

The Vizhinjam seaport is expected to launch its Phase two expansion in September 2025. Expected to be completed by 2028, the Phase 2 will focus on increasing the port’s container capacity to some 4.5 million Twenty-foot Equivalent Units (TEUs), a year and will add a break-bulk berth, a tanker berth and a bunkering facility on an extended 4-km-long breakwater, reported The Hindu.

Vizhinjam port, which has handled nearly 1 million TEUs after starting commercial operations in December 2024, now has an 800-m long container ship jetty capable of handling one container mother ship and two feeder vessels at a time, reported The Hindu.

Phase 2 will increase the length of the container berth to 2000-m long and hold three mother ships and several feeder vessels at the same time.

While Phase 1, costing a little less than ₹9,000 crore, saw the financial participation of the Kerala and the Union governments including through viability gap funding for the project, the finance for Phase 2, costing ₹10,000 crore, will be entirely raised by the Adani Ports & SEZ Ltd (APSEZ), the ports and logistics company of the Adani Group, according to The Hindu.

Port Ecosystem Development

In 2015, the Kerala government had signed an agreement with Adani Ports & SEZ Ltd (APSEZ) to further expand the capacity of the Vizhinjam International Deepwater Seaport at Thiruvananthapuram. Adani has a 40-year concession to build, operate and transfer the port, with a provision for a 20-year extension. The port commenced trial operations in July 2024, receiving its first mothership, the San Fernando.

The Kerala government is accelerating port-related industrialisation to engage consultants to develop 200 acres near Vizhinjam for logistics, warehousing and manufacturing clusters, supported by NH-66 and a proposed ₹360 cr cloverleaf interchange.

Meanwhile, the Kerala Maritime Board has proposed transferring over five acres of its prime land adjacent to Vizhinjam Inspection Bungalow on Harbour Road to state government for development of container yards, freight station, oil storage facilities or warehouses. These moves aim to support the emerging port ecosystem to match infrastructure growth with the port’s capacity surge.