In a significant boost to India’s maritime sector, Prime Minister Narendra Modi announced on Friday that the capacity of the Vizhinjam deepwater port will triple in the next three years, positioning it as a key hub for some of the world’s largest cargo ships. The port’s expansion will help reduce India’s reliance on foreign transshipment hubs—primarily Colombo and Singapore, where 75% of India’s transshipments currently occur. This shift, Modi emphasized, would not only enhance India’s maritime capabilities but also boost revenue retention and create new economic opportunities in Kerala.
The Rs 8,800 crore Vizhinjam project is India’s first dedicated transshipment hub, benefiting from its natural depth of nearly 20 meters, which allows larger vessels to dock, unlike many smaller ports in the country.
Strategic Importance in India’s Maritime Vision
Modi connected the Vizhinjam port’s development to India’s broader maritime strategy, especially highlighting the Maritime Amrit Kaal Vision and the India-Middle East-Europe Economic Corridor, announced at the G20 summit. The prime minister noted that the port, while years in development, is primarily a result of private sector collaboration, with Adani Ports playing a key role in operating the terminal.
In a lighter moment, Modi humorously pointed out the role of private investment, stating:
“When the people of Gujarat learn that Adani built such a great port in Kerala, after working on a port in Gujarat for 30 years without building anything like this, they’ll be upset with him,”
This comment elicited laughter from the audience, adding a personal touch to the announcement.
Enhancements in India’s Maritime Sector
The PM also underscored the broader changes in India’s maritime landscape, noting the 30% reduction in the turnaround time for ships at the country’s major ports over the last 10 years. Additionally, he highlighted the growth in the number of Indian seafarers, which has surged from 1.2 lakh in 2014 to over 3.2 lakh today, following the government’s reformed regulations aimed at improving the seafaring profession.
Significance for Kerala’s Economic Growth
The event, which coincided with the birth anniversary of Adi Shankaracharya, a key figure in Kerala’s spiritual and cultural legacy, linked the opening of the Vizhinjam port to Kerala’s growing importance in India’s economic and maritime plans. Modi stated that Shankaracharya’s teachings laid the foundation for unity, reinforcing Kerala’s pivotal role in India’s future economic development.
Kerala’s Economic Context
While the port’s inauguration is a monumental step, Kerala is currently facing rising debt and limited fiscal space, with the state government seeking more central assistance. Despite these financial challenges, the PM highlighted several significant infrastructure projects supported by the Centre, including the long-delayed Kollam and Alappuzha bypasses and new initiatives like the Kochi shipbuilding and repair cluster.
The Vizhinjam deepwater port represents a cornerstone of India’s maritime future, with potential benefits that could transform both Kerala’s economy and India’s global trade competitiveness.
