India’s maritime edge gets stronger: Adani ports greenlights ₹16,000 Crore for Vizhinjam Phase 2

India’s maritime edge gets stronger: Adani ports greenlights ₹16,000 Crore for Vizhinjam Phase 2

Recently, Adani Ports and Special Economic Zone Ltd. (APSEZ) has committed a massive ₹16,000 crore investment toward the second phase of the Vizhinjam International Seaport expansion in Kerala. This bold move aims to elevate the port into a truly world-class transshipment hub—with a targeted capacity jump that could rival major rivals in Asia by 2029.

We have done a  SWOT analysis earlier for Vizhinjam port.

Vizhinjam’s strategic location—just off major east–west shipping routes and with natural deep-sea capability—has long made it attractive to global shipping lines. Building on Phase 1 commercial success, where the port rapidly crossed 1 million TEUs in its first year of operations, Phase 2 is far more ambitious.

The Phase 2 expansion plans include:

• Adding approximately 4.1 million TEUs to the port’s handling capacity.

• Installation of 21 automated ship-to-shore cranes and 45 cantilever gantry cranes to speed up cargo movement.

• A rail handling yard and advanced electrical and automation systems for efficient freight operations.

• Berth expansion, dredging, reclamation, and India’s deepest breakwater construction to reinforce waterfront operations.

These enhancements will make Vizhinjam one of India’s most technologically advanced ports, with automation and green infrastructure woven into its design.

Why Vizhinjam is important for Indian maritime logistics

For decades, India has relied on neighbouring transshipment hubs - like Colombo and Singapore . During the transhipment the data of cargo is shared with the ports which can be shared with others entities having not a good intention. The data includes cargo details, value of selling which can be harmful for exports business for India.

Adani Ports’ ₹16,000 crore commitment is part of a larger ₹30,000 crore cumulative investment plan for Vizhinjam- making this one of the largest private infrastructure injections in Kerala’s history.

Phase 2 & expansion: Adani Ports & SEZ Ltd (APSEZ) committed ₹16,000 crore toward Phase 2 capacity upgrade and extension — part of ~₹30,000 crore total development.

Expansion aims to finalize major works by Dec 2028, ~17 years ahead of old schedule.

After full Phase 2 build-out, Vizhinjam will have a 2 km continuous container berth (longest in India) and handle up to 5.7 million TEUs per year.

• First container ship: San Fernando docked on 11 Jul 2024, marking the first commercial vessel call.

• Huge MSC vessel calls: MSC Irina — one of the world’s largest container ships with 24,346 TEU capacity — berthed here, a first for a South Asian port.

• The port also welcomed MSC Turkiye, another largest eco-friendly mega-ship of similar scale.

• Over 40 Ultra Large Container Vessels (ULCVs) have called since opening, many from Mediterranean Shipping Company (MSC) — the world’s largest carrier.

• Vizhinjam has handled 500+ vessel calls in ~10 months with multiple record-breaking drafts (e.g., MSC Verona at ~17.1 m) — India’s deepest container vessel handled.

Performance so far

• Within its first year, Vizhinjam handled ~1 million TEUs and 670+ ships, operating beyond initial capacity estimates.

• Marked records include highest container handling from a single vessel and several first-ever ultra-large ship berthings in India.