₹10,000 Crore Adani Ports Deal Set for Phase 2 Launch on November 5

Adani Ports gears up to invest ₹10,000-15,000 crore in Vizhinjam International Port's next phases, with the inauguration of Phase 2 slated for November 5, aiming to transform it into India's premier transshipment hub.

Adani Ports Investment Vizhinjam International Port

Adani Ports and the Kerala government are transforming a sleepy fishing village into a global maritime powerhouse. The Vizhinjam International Port, an ambitious project, already making waves, is set for a monumental leap forward with the inauguration of its second phase on November 5. And it’s not just a small step; it’s a giant stride backed by a whopping ₹10,000–15,000 crore investment.

The Vizhinjam International Port, located near Thiruvananthapuram, is quickly becoming India’s first deep-water container transshipment hub. Its strategic location, just 10 nautical miles from the bustling international shipping route connecting Europe, the Persian Gulf, and the Far East, is a natural advantage. The port, developed under a Public-Private Partnership (PPP) model, commenced operations on July 11, 2024, and has since handled 1.15 million containers and welcomed 525 vessels, including some of the world’s largest mother ships.

Now, the real game-changer is about to unfold. On November 5, Kerala Chief Minister Pinarayi Vijayan will inaugurate the second phase of the project, which will be executed simultaneously with phases three and four. This accelerated development plan aims for completion by December 2028. Adani Ports is committing a substantial investment, estimated between ₹10,000 crore and ₹15,000 crore, making it the largest PPP investment in Kerala’s history, with the state government bearing no financial contribution for these upcoming rounds of development.

So, what exactly does this massive expansion entail? The upcoming phases are designed to significantly boost the port’s capacity and operational capabilities. Plans include constructing a 1,200-meter container berth, which will be equipped with advanced cranes. This extends the existing 800-meter berth. Additionally, a one-kilometer approach channel and a fully developed container yard with supporting infrastructure are on the cards. Not stopping there, the project will also see the addition of a 660-meter multipurpose berth, 250-meter liquid berths with expanded liquid cargo storage, and a substantial 77.17 hectares of reclaimed land. Once these phases are completed, the port’s annual handling capacity is projected to quadruple, rising to an impressive 4 million TEUs (Twenty-foot Equivalent Units), solidifying Vizhinjam’s position as the largest container-handling port in South India.

The economic ramifications for India, and particularly Kerala, are immense. Officials expect this expansion to provide a substantial boost to the state’s economy, establishing Vizhinjam as a crucial transshipment hub in South Asia. Currently, a significant portion of Indian cargo is transshipped through foreign ports like Colombo, Singapore, and Dubai, incurring additional costs. Vizhinjam aims to reverse this trend, potentially saving India an estimated $220 million in foreign exchange losses annually and reducing logistics costs by about 4-6%. The port’s deep-water capacity, which can host ultra-large container ships requiring 20m+ drafts, further enhances its competitive edge globally.

Beyond the direct port operations, the project is fostering a broader ecosystem. The construction of a new modern fishing harbour is set to commence simultaneously in November, addressing concerns of local fishing communities and ensuring integrated development. Furthermore, dedicated rail connectivity for cargo transport and upgraded road links are expected to be completed by 2028, ensuring seamless multimodal logistics. This robust infrastructure positions Vizhinjam not just as a port, but as a catalyst for India’s maritime trade network, enhancing export competitiveness and creating thousands of direct and indirect jobs.

The journey of Vizhinjam from a concept to a continental pivot is a testament to strategic vision and execution. With the November 5th inauguration, India’s ambition to become a dominant force in global maritime logistics takes another definitive step. It’s a grand plan, and the ripples will be felt far beyond Kerala’s shores.


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