Kerala signs ₹2,000-crore public sector logistics pacts for Vizhinjam port

In a major move to transform Kerala’s maritime landscape, the State government on Monday signed a memorandum of understanding (MoUs) with three Central Public Sector Undertakings (PSUs) to launch a ₹2,000-crore logistics master plan at the Vizhinjam international seaport. The agreements were executed in the presence of Chief Minister Pinarayi Vijayan at the Legislative Assembly building.

This initiative marks a strategic shift to transform the port into a comprehensive economic development hub, ensuring that critical infrastructure remains under public sector oversight even as the port operates on a Public-Private Partnership (PPP) model.

The partnership involves the State-owned Vizhinjam International Seaport Limited (VISL) and three Central PSU giants: Indian Oil Corporation Limited (IOCL), Container Corporation of India (CONCOR), and Central Warehousing Corporation (CWC). By integrating these entities, the government aims to prevent monopolisation in cargo handling, guarantee fair pricing for traders, and safeguard national maritime interests.

As part of the agreement, the IOCL will establish large-scale bunkering facilities (maritime fueling) by investing around ₹700 crore. This infrastructure will provide fuel for the massive mother ships frequenting Vizhinjam, positioning the port as a primary energy hub in the Indian Ocean.

The CONCOR will develop a robust transport network, including Inland Container Depots (ICD) and Container Freight Stations (CFS), to ensure efficient cargo movement across India via the rail network. The agency will invest around ₹600 crore as part of the initiative.

The CWC will construct a state-of-the-art Multi-Modal Logistics Park (Logistics & Warehousing) at an investment of ₹700 crore. Spanning roughly 50 acres, this facility will feature cold storage and export-linked units, developed without any financial liability to the State government. The ceremony was attended by Minister for Ports V.N. Vasavan, Ports Secretary A. Kowsigan, and senior officials, alongside senior leadership from the central PSUs.