Government of Kerala signed Memorandums of Understanding (MoUs) with three Central Public Sector Undertakings (CPSUs) to implement a ₹2,000 crore logistics master plan at the Vizhinjam International Seaport.
The initiative aims to transform Vizhinjam into a comprehensive maritime and logistics hub, while ensuring strategic infrastructure remains under public sector oversight, even though the port operates under a Public-Private Partnership (PPP) model.
Key Highlights
Participating Entities
The MoU involves:
- Vizhinjam International Seaport Limited (VISL)
- Indian Oil Corporation Ltd (IOCL)
- Container Corporation of India (CONCOR)
- Central Warehousing Corporation (CWC)
Strategic Objective
- Prevent monopolisation in cargo handling
- Ensure fair pricing for traders
- Safeguard national maritime interests
- Strengthen India’s logistics competitiveness
Land Allocation for Projects
- 25 acres at Kottukal (near Vizhinjam) allotted to CONCOR for a multimodal logistics park.
- 50 acres at Amaravila (near Neyyattinkara) earmarked for CWC for a large warehousing & logistics complex.
- ~20 acres near port area proposed for IOCL for bunkering infrastructure.
Division of ₹2,000 Crore Investment
1. Maritime Fueling – ₹700 crore (IOCL)
- Establish large-scale bunkering facilities
- Provide fuel to “mother ships” docking at Vizhinjam
- Position Vizhinjam as a major energy and refueling hub in the Indian Ocean region
2. Rail Connectivity – ₹600 crore (CONCOR)
- Develop rail-linked infrastructure
- Set up:
- Inland Container Depots (ICDs)
- Container Freight Stations (CFS)
- Enable seamless cargo movement across India
- Strengthen multimodal logistics integration
3. Logistics & Warehousing – ₹700 crore (CWC)
- Develop a multimodal logistics park over 50 acres
- Include:
- Cold storage facilities
- Export-oriented units
- No financial burden on Kerala government exchequer
Strategic Importance of Vizhinjam Port
- Located close to major international east–west shipping routes
- Deep-water natural harbour
- Potential to compete with transshipment hubs like Colombo
- Enhances India’s maritime self-reliance
Broader Significance
- Strengthens India’s maritime and logistics infrastructure
- Supports PM Gati Shakti and integrated multimodal connectivity
- Enhances India’s competitiveness in global trade
- Boosts Kerala’s role in India’s maritime economy
- Aligns with Atmanirbhar Bharat in shipping and logistics
Indian Oil Corporation Ltd (IOCL)
- Established: 1959
- Headquarters: New Delhi
- India’s largest commercial oil company
- Under: Ministry of Petroleum & Natural Gas
- Activities:
- Refining
- Pipeline transportation
- Marketing of petroleum products
- Petrochemicals
- Renewable energy
Significance:
- Controls a major share of India’s fuel supply chain
- Expanding into LNG, hydrogen, and green fuels
- Key player in India’s energy security
Container Corporation of India (CONCOR)
- Established: 1988
- Headquarters: New Delhi
- Under: Ministry of Railways
- India’s largest container transport company
Core Functions:
- Inland Container Depots (ICDs)
- Container Freight Stations (CFS)
- Rail-based logistics services
- Multimodal transportation
Importance:
- Backbone of India’s containerised rail logistics
- Critical for export-import cargo movement
- Supports Dedicated Freight Corridor (DFC) integration
Central Warehousing Corporation (CWC)
- Established: 1957
- Headquarters: New Delhi
- Under: Ministry of Consumer Affairs, Food & Public Distribution
Functions:
- Warehousing & logistics services
- Cold storage facilities
- Bonded warehouses
- Agri-warehousing
Role:
- Supports food security
- Facilitates agricultural and industrial supply chains
- Provides storage for customs-bonded goods