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Kerala inks Rs 2,000 cr PSU deals for Adani Vizhinjam port logistics hub

The Kerala government has signed Memoranda of Understanding worth Rs 2,000 crore with three Central PSUs to develop an integrated logistics ecosystem at the Adani Vizhinjam International Seaport. The agreements, formalized in the presence of the Chief Minister, involve Indian Oil Corporation, Container Corporation of India, and Central Warehousing Corporation. The investments are aimed at establishing bunkering facilities, rail-linked cargo depots, and a multi-modal logistics park to transform the port into a comprehensive maritime hub. The strategy embeds critical services within the public sector framework to ensure competitive pricing and reduce concentration risks.

Key Points: Kerala signs Rs 2,000 cr MoUs with PSUs for Vizhinjam port logistics

  • Rs 2,000 crore investment by 3 PSUs
  • IOCL to build Rs 700 cr bunkering facility
  • CONCOR to invest Rs 600 cr for rail-linked cargo
  • CWC to develop Rs 700 cr multi-modal logistics park
2 min read

Kerala govt signs Rs 2,000 crore MoUs with three PSUs for logistics ecosystem at Adani Vizhinjam International Seaport

Kerala govt partners with IOCL, CONCOR, and CWC to develop a Rs 2,000 crore integrated logistics ecosystem at the Adani Vizhinjam International Seaport.

"a structural intervention to transform Vizhinjam from a transshipment facility into a diversified logistics and maritime services hub - Official Statement"

Thiruvananthapuram, Feb 23

In a decisive move to consolidate public sector presence in strategic maritime infrastructure, the Kerala government on Monday signed Memoranda of Understanding worth Rs 2,000 crore with three Central Public Sector Undertakings to develop an integrated logistics ecosystem at the Adani Vizhinjam International Seaport.

The agreements were formalised in the presence of Chief Minister Pinarayi Vijayan at the Legislative Assembly complex, signalling a calibrated policy approach that seeks to retain core infrastructure under public oversight even as the port operates under a public-private partnership (PPP) model.

The initiative is positioned as a structural intervention to transform Vizhinjam from a transshipment facility into a diversified logistics and maritime services hub.

The partnership brings together state-owned Vizhinjam International Seaport Limited (VISL) and three Central entities -- Indian Oil Corporation Limited (IOCL), Container Corporation of India (CONCOR), and Central Warehousing Corporation (CWC).

The government's strategy is to embed critical services such as bunkering, rail-linked cargo movement and warehousing within the PSU framework, thereby preventing concentration risks in cargo handling and ensuring competitive pricing for trade stakeholders.

Of the total planned investment, Rs 700 crore will be deployed by IOCL to establish large-scale bunkering facilities capable of servicing mother vessels calling at the port.

The project is expected to position Vizhinjam as a key refuelling node along Indian Ocean trade routes, strengthening ancillary revenue streams.

CONCOR will invest Rs 600 crore to develop Inland Container Depots and Container Freight Stations, enhancing rail connectivity with the national hinterland and reducing cargo evacuation time.

The remaining Rs 700 crore out of the total MoUs will be invested by CWC to set up a multi-modal logistics park spanning nearly 50 acres, incorporating cold storage and export-oriented units, with officials indicating that the structure entails no direct financial liability for the state exchequer.

Senior ministers and PSU executives attended the signing ceremony.

With this integrated logistics blueprint, Kerala is seeking to build connectivity and strategic depth around Vizhinjam, reinforcing its ambition to emerge as a competitive maritime gateway in the region.

- IANS

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Reader Comments

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Priya S
Rs 2000 crore is a massive investment! The focus on bunkering and rail connectivity is crucial. Vizhinjam has the potential to really challenge Colombo and Singapore as a transshipment hub if the execution is good. Fingers crossed for timely completion.
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Arjun K
Good to see central PSUs partnering with the state. The multi-modal logistics park with cold storage is a game-changer for Kerala's agricultural and seafood exports. This can boost the entire economy of the southern region. Well thought out plan.
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Rohit P
While the intent is good, I hope there is transparency in these MoUs. "No direct financial liability for the state" sounds promising, but we've seen cost overruns in such projects before. The government must ensure regular audits and updates to the public.
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Michael C
Interesting model. Embedding PSUs for core services within a private port concession is a unique Indian solution to the public vs private infrastructure debate. If it works, it could be a template for other major ports in the country.
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Ananya R
As someone from Kerala, I'm really excited! This is not just about a port anymore, it's about building a whole new logistics ecosystem. The rail link by CONCOR will be a lifeline. Hope the local communities also benefit from the development.

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