Kerala Clears Multimodal Logistics Parks Near Vizhinjam Port, Concor, IOC and CWC Get In-Principle Nod

Thiruvananthapuram: In a significant move to capitalise on the Vizhinjam port-led industrial and logistics ecosystem, the Kerala government has granted in-principle approval for the development of multimodal logistics parks (MMLPs) by central public sector undertakings Container Corporation of India (Concor), Indian Oil Corporation Limited (IOC) and the Central Warehousing Corporation (CWC).

Government orders approving the proposals of Concor and CWC were issued by the ports department last week, while the order for IOC was cleared on January 14. Official sources said memoranda of understanding (MoUs) with the three central PSUs are expected to be signed later this month in the presence of chief minister Pinarayi Vijayan.

Vizhinjam International Seaport Limited (VISL), the state-owned entity implementing the transshipment port project, has already identified land parcels for the proposed facilities. Around 25 acres at Kottukal, located close to the port, has been earmarked for Concor to set up a multimodal logistics park. For CWC, approximately 50 acres has been identified at Amaravila near Neyyattinkara, strategically positioned along the Thiruvananthapuram–Nagercoil railway line, for establishing a large warehousing and logistics complex. IOC is proposed to be allotted about 20 acres in the vicinity of the port.

As per the government order, the managing director of VISL has been authorised to negotiate the terms and conditions of long-term land lease agreements with Concor and to execute a non-binding MoU, subject to final government approval.

Concor, a PSU under the ministry of railways, had initially sought up to 100 acres near Vizhinjam for developing an MMLP. Following discussions, VISL and Concor jointly identified a more compact 25-acre site at Kottukal. Land costs in the area are estimated at ₹7–8 crore per acre.

The land will be acquired by VISL and leased to Concor, which will be responsible for developing the infrastructure and securing statutory approvals, with facilitation support from VISL.

Similarly, CWC, a statutory PSU under the Union government, had proposed allocation of up to 50 acres near a railway line to strengthen cargo-handling infrastructure linked to the transshipment hub. VISL identified around 50 acres along the existing railway corridor at Amaravila for the project, with acquisition costs estimated at ₹4–4.5 crore per acre.

IOC has conveyed interest in establishing marine fuel bunkering facilities at Vizhinjam in line with international standards. The company had sought 30–40 acres with access to designated bunker jetties. VISL has proposed leasing 20 acres on a long-term basis of 30–40 years in the initial phase, with an additional 20 acres expected to be made available within a year. IOC will develop tank farms and associated infrastructure and obtain the necessary regulatory clearances.

A senior VISL official said these projects are expected to serve as anchor investments and draw additional logistics, shipping and industrial players to the emerging Vizhinjam ecosystem.