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Adani Ports to invest INR 13,000 crore in Vizhinjam Port Phase 2

#Infrastructure News#India#Kerala#Thiruvananthapuram
Last Updated : 8th May, 2025
Synopsis

Adani Ports will invest INR 13,000 crore in the second phase of the Vizhinjam International Seaport, expanding its capacity to 5 million TEUs by 2028. Located near Thiruvananthapuram, the port's development is expected to reduce reliance on foreign transshipment hubs and spur growth in logistics, warehousing, and real estate along Kerala's southern coast. The Kerala government is contributing INR 1,637 crore for infrastructure, including an extended breakwater. As Vizhinjam becomes a strategic trade gateway, experts anticipate a rise in industrial parks, port-linked housing, and commercial zones, mirroring growth seen around other major ports like Mundra and Krishnapatnam.

Adani Ports and SEZ Ltd (APSEZ) will invest INR 13,000 crore in the second phase of development at the Vizhinjam International Seaport in Kerala. This investment marks a major step in strengthening India's shipping infrastructure, with long-term implications for trade, logistics, and coastal development in South India.


Vizhinjam port, which began partial operations last year, is India's first deepwater transshipment port. It has been designed to handle large container ships with capacity beyond one million TEUs (twenty-foot equivalent units). With this new investment, the port's handling capacity will be expanded to 5 million TEUs.

Karan Adani, MD of APSEZ, confirmed that the INR 13,000 crore investment will cover breakwater extension and terminal expansion. The breakwater-already one of the deepest in India at 28 metres-will be extended from 3,100 to 3,900 metres, enabling safe access for even larger vessels. Construction is expected to finish by 2028.

This project is being executed under a public-private partnership, with the total estimated investment pegged at INR 7,000 crore. The Kerala government is contributing INR 1,637 crore to fund key infrastructure, including the breakwater.

The Vizhinjam port is poised to act as a trade gateway for southern India, reducing dependency on Colombo and Singapore ports. Its location, just 10 km from the Kerala capital Thiruvananthapuram, makes it a strategic hub. Experts believe the expansion could spur warehousing, logistics parks, and residential development around the port zone-similar to how Mundra port transformed Kutch's real estate profile.

With the rise of port-led development, real estate along the Vizhinjam corridor is expected to attract more private players. Builders may focus on industrial parks, housing for port workers, and commercial zones aimed at ancillary businesses such as shipping agencies, repair yards, and inland container depots.

In related developments, the Indian government is prioritizing coastal infrastructure under its Sagarmala programme, with other ports like Dhamra, Krishnapatnam, and Paradip also undergoing capacity upgrades.

As Vizhinjam moves into its next phase, the combination of world-class maritime infrastructure and policy support is expected to drive both logistics efficiency and regional real estate demand.

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