Why Transhipment Capacity Is Strategic for India
India handles a large share of its container transhipment traffic through foreign ports, increasing logistics costs and turnaround times for exporters and importers. As trade volumes rise, building deep-draft, automated transhipment hubs has become critical to strengthening India’s maritime competitiveness.
What Is Being Announced
Adani Ports and Special Economic Zone is set to undertake the second phase of development at the Vizhinjam International Seaport in Kerala, with an estimated investment of around ₹16,000 crore. The phase 2 development is expected to be announced during the inauguration ceremony on Saturday, to be led by Kerala Chief Minister Pinarayi Vijayan, according to sources.
What Phase 2 Will Add
The second phase will add 4.1 million TEUs of container handling capacity to the port, positioning Vizhinjam as the largest transhipment hub in the Indian subcontinent. While Vizhinjam is already India’s most advanced and fully automated transhipment port, phase 2 will deploy upgraded automation technologies and equipment.
Planned infrastructure includes 21 automated ship-to-shore cranes, 45 automated cantilever rail-mounted gantry cranes, a dedicated rail handling yard, and advanced electrical and automation systems. The phase will also involve berth expansion, dredging, and land reclamation.
Engineering and Sustainability Focus
Phase 2 includes construction of India’s deepest breakwater, extending 920 metres at a depth of 21 metres. Green infrastructure such as electric vehicle charging stations, along with critical facilities like electrical substations, sewage treatment plants, and ISPS-compliant security fencing, will also be developed.
Market Impact
With its deep draft and high automation, Vizhinjam is expected to attract mainline vessels that currently bypass Indian ports for transhipment. This could significantly reduce India’s dependence on overseas hubs and improve supply chain efficiency.
Evergreen Insight
Large-scale, automated port infrastructure is emerging as a key lever in India’s trade and logistics strategy, enabling the country to retain value within its maritime ecosystem.
Operator Takeaway
For logistics and export-focused businesses, Vizhinjam’s expansion signals a long-term shift toward faster, more cost-efficient container movement through Indian ports.
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