Kerala Signs ₹2000 Cr Logistics MoUs to Transform Vizhinjam Port into Multimodal Trade Hub

The Kerala Government has signed memoranda of understanding with three central public sector undertakings to implement a ₹2000 crore logistics master plan at the Vizhinjam International Seaport, marking a major step toward reshaping the state’s maritime ecosystem.

The agreements were formalised at the Legislative Assembly Complex in the presence of Pinarayi Vijayan, signalling a strategic push to develop Vizhinjam into a comprehensive economic hub while maintaining key infrastructure under public sector oversight, despite the port operating under a public-private partnership model.

The initiative brings together Vizhinjam International Seaport Limited and three central entities—Indian Oil Corporation Limited, Container Corporation of India, and Central Warehousing Corporation. By integrating these organisations, the government aims to prevent cargo concentration, ensure competitive pricing, and safeguard national maritime interests.

The ₹2000 crore investment has been structured across three key areas. Indian Oil Corporation will invest approximately ₹700 crore to develop large-scale bunkering facilities for refuelling mother vessels, positioning Vizhinjam as a strategic energy hub in the Indian Ocean region.

Container Corporation of India will allocate around ₹600 crore to build rail-linked logistics infrastructure, including inland container depots and container freight stations, enhancing cargo evacuation and hinterland connectivity.

Meanwhile, the Central Warehousing Corporation will invest about ₹700 crore to establish a multimodal logistics park spanning nearly 50 acres. The facility will include cold storage infrastructure and export-oriented units, with the state government confirming that the project will not burden the state exchequer.

The signing ceremony was also attended by Ports Minister V N Vasavan, Ports Secretary Dr A Kowsigan, and VISL Managing Director Dr Divya S Iyer, along with senior officials from the participating central public sector enterprises.

The initiative is expected to significantly boost supply chain efficiency, strengthen port-led development, and position Vizhinjam as a key logistics and trade gateway for India.