The Government of Kerala has granted permission to set up a Multi-Modal Logistics Park (MMLP) near the Vizhinjam International Seaport. Container Corporation of India Ltd. (CONCOR), one of the largest public sector undertakings in the logistics industry with a pan-India presence across ports and Container Freight Station (CFS)/MMLP operations, will set up a facility in Vizhinjam. .
The state has also approved proposals to set up an international standard marine fueling facility at Vizhinjam by Indian Oil Corporation Limited (IOC) as well as a warehouse and logistics complex by Central Warehousing Corporation (CWC) near the seaport. Vizhinjam International Seaport Limited (VISL) has been tasked with negotiating the terms of long-term lease agreements with these companies and concluding non-binding memoranda of understanding (MoU) with them.
State government sources told The Hindu that CONCOR was looking for up to 100 acres near the port for MMLP. However, in the initial phase, VISL and CONCOR have identified around 25 acres in Kottukal for the project, where the estimated land cost is between ₹ 7 crore and ₹ 8 crore per acre. The state will lease the acquired land to CONCOR at a monthly rent of ₹ 1.5 lakh per acre, with an annual appreciation of 5%.
The land will be handed over to CONCOR after VISL’s acquisition, with the condition that CONCOR, with VISL’s support, will provide infrastructure development and legal clearances. The agreement also stipulates that 2% of the total operating revenue generated by MMLP will be paid to the state within 15 days of the end of each month.
In the case of CWC, the company needs about 50 acres to build a large warehouse and logistics complex. The land has been identified at Amaravila near Neyyattinkara, near the Thiruvananthapuram-Nagercoil railway line, where the estimated cost of the land is between ₹4-5 million per acre. The proposed facility is expected to enhance the cargo handling infrastructure associated with the terminal.
The IOC was looking for 40 acres with access to designated bunker piers near the harbor. In the first phase, 20 acres will be allocated where the company will build tank farms and related infrastructure for refueling.
Approximately 800 acres have been identified for the development of a port-related industrial ecosystem in and around the port. However, state permission is required as the land must be acquired by state government agencies before being handed over to investors.
The Vizhinjam Seaport has made significant progress in the transshipment industry, handling 670 vessels and handling 1.34 million TEUs as of 31 December 2025. Meanwhile, the port’s concessionaire, AVPPL, is carrying out capacity expansion works to be completed by December 2028. Once completed, the port’s annual capacity will increase from 100.5 million TEUs per annum. million TEU. The expansion also includes the construction of two multi-purpose moorings with a total length of 1220 m.
Published – 12 Feb 2026 20:19 IST