Cochin Port Launches Major Land-Leasing Plan to Unlock Commercial and Hospitality Development

The Cochin Port Authority has moved forward with a significant land monetisation strategy, opening nearly 140 acres of non-operational land for commercial and hospitality development. This marks one of the port’s largest asset-leasing initiatives in recent years, aimed at unlocking long-term value and attracting private sector participation in Kerala’s growing infrastructure and services ecosystem.

As part of the first phase, the port authority has issued a tender to lease 22.38 hectares, or 55.30 acres, situated on the southern side of NH-966B, the key road linking Willingdon Island to the NH-66 Kundannoor Junction. A second tender for an additional land parcel of around 85 acres is expected shortly, according to senior government officials familiar with the development.

The land will be leased for an initial period of 30 years, with an option to renew for another 30 years, allowing tenants to plan long-term commercial and hospitality projects. The tender specifies potential uses such as hotels, convention centres, commercial and office complexes, stadiums, educational institutions, hospitals and public spaces. This opens the door for diversified real estate development in Kochi, which continues to see rising demand from tourism, logistics and IT-backed sectors.

The port authority has fixed a reserve lease rent of ₹12.70 crore per hectare annually for the 55.30-acre parcel. Bidders must quote above this benchmark, and the highest quoted price will become the floor price for the subsequent e-auction. The land will be allotted to the highest bidder in either phase of the process.

Officials noted that the decision to monetise the land follows growing interest from multiple private players. Since port-related activities cannot be carried out on these parcels, leasing them is seen as a practical move to generate revenue while supporting the region’s commercial expansion.

However, traditional PPP-based monetisation has not progressed in Cochin Port due to its cargo profile. Nearly 60 percent of its traffic is oil cargo handled by state-run oil companies, making privatisation of those berths unviable. Despite this, the current land-leasing plan is expected to significantly strengthen the port’s financial position.