Adani Ports will invest ₹30,000 crore to fast-track Vizhinjam port expansion

Adani Ports and Special Economic Zone (APSEZ) has announced an investment of ₹30,000 crore to expand the Vizhinjam International Seaport. The announcement came as Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, inaugurated the capacity augmentation works for Phases II, III, and IV of the project on 24 January.

Karan Adani, Managing Director of APSEZ said during the inauguration of Phase 2, "Vizhinjam is no longer just a port, it is India’s next global maritime gateway".

The expansion is part of a fast-tracked integrated development program designed to position India as a dominant player in global transshipment. Alongside the cumulative commitment, specifically ₹16,000 crore is allocated under Phase 2.

The port's capacity is set to rise from the current 1 million TEUs (Twenty-foot Equivalent Units) to 5.7 million TEUs by 2029. The infrastructure project also includes creating a continuous 2-kilometer-long container berth, the longest in India, and extending the breakwater to 3.88 kilometers.

Once completed, the port will be capable of handling up to five mother vessels simultaneously and will be equipped with cranes to handle next-generation vessels carrying up to 28,000 TEUs.

The urgency of the expansion is driven by the port's immediate commercial success. Since commencing Phase I commercial operations on December 3, 2024, Vizhinjam has operated at over 130% capacity utilisation, handling over 1.43 million TEUs in a short period.

The capacity augmentation works are proceeding under a supplementary concession agreement signed in November 2024 between the Kerala Government and Adani Vizhinjam Port Private. This agreement has advanced the project timeline by nearly 17 years, with a completion target now set for December 2028.

Union Minister Sarbananda Sonowal highlighted the strategic intent behind the expansion, noting that it reflects India's focus on building world-class infrastructure.

"The capacity augmentation will play a critical role in reducing India’s dependence on foreign transshipment hubs, improving logistics efficiency, and supporting the growth of India’s external trade," Sonowal said.

Kerala Chief Minister Pinarayi Vijayan said, "Currently serving mainly Indian container ports, with the completion of Phase 2, Vizhinjam will become the transshipment hub of the whole world including continents of Asia, Europe, America, and Africa".

The port has already established direct connectivity with major global shipping routes across Europe, the Americas, Africa, and the Far East, reinforcing its trajectory to become a critical node in international trade.

The Vizhinjam port, a multi-purpose facility, was strategically selected for development under the Vizhinjam to Vision 2047 initiative, announced in May 2025. Its location near major international shipping routes is a key asset, dramatically reducing vessel transit times and positioning it as a critical hub for maritime trade.

The Vizhinjam port is distinguished by several key features and significant roles. Crucially, it stands out as one of India's rare natural deep-water ports, boasting a natural deep draft of nearly 20 meters.

This exceptional depth enables it to efficiently handle some of the world's largest cargo and container vessels. Furthermore, the port is poised to become India's first dedicated container trans-shipment port, strategically positioned close to one of the globe's busiest sea trade routes.

The port is expected to substantially reduce the nation's current 75% dependency on foreign ports for trans-shipment services. By retaining this revenue domestically, the port will generate new economic opportunities for the state of Kerala and its residents.

The Vizhinjam port development is fully aligned with the broader 'Maritime Amrit Kaal Vision, 2047.' This national vision outlines the development of six Mega Port clusters by 2047. The Cochin – Vizhinjam Port cluster, along with Galathea South Bay Port, Chennai – Kamarajar – Cuddalore Port cluster, and Paradip and other Non-Major Ports cluster, are all targeted for a capacity exceeding 300 Million Tonnes Per Annum (MTPA).

Meanwhile, the Deendayal and Tuna Tekra Port cluster, and the Jawaharlal Nehru – Vadhavan Port cluster, are aiming for an even higher capacity, surpassing 500 MTPA.

In support of this vision, major ports across India are actively undergoing infrastructure enhancement and capacity augmentation through a combination of Public Private Partnership (PPP) mode and the utilisation of internal resources. Shares of Adani Ports and Special Economic Zone were trading up by 3.09% at ₹1,348.80 per share on the National Stock Exchange as of 12:02 PM.