Kerala Clears Multimodal Logistics Parks Near Vizhinjam Port to Boost Port-Led Growth

The Kerala government has given its approval for the development of multimodal logistics parks near the Vizhinjam International Seaport, a move expected to significantly strengthen the state’s port-led industrial and logistics ecosystem. The decision is aimed at improving cargo handling efficiency, reducing logistics costs and positioning Vizhinjam as a key transshipment and logistics hub in southern India.

In-principle clearance has been granted for logistics parks to be developed by central public sector undertakings including Container Corporation of India, Indian Oil Corporation and the Central Warehousing Corporation. Official orders for projects proposed by Container Corporation of India and the Central Warehousing Corporation were issued last week, while approval for the Indian Oil Corporation project was issued earlier in January. Memorandums of understanding with these entities are expected to be signed later this month.

Vizhinjam International Seaport Limited, which is overseeing the transshipment port project, has already identified suitable land parcels for the proposed facilities. Container Corporation of India plans to set up a multimodal logistics park spread across about 25 acres at Kottukal, close to the port. The Central Warehousing Corporation will develop a large warehousing and logistics complex on nearly 50 acres at Amaravila, strategically located along the Thiruvananthapuram–Nagercoil railway line. Indian Oil Corporation is proposed to receive around 20 acres of land near the port for its logistics and storage facilities.

Industry experts say the projects will play a crucial role in creating an integrated logistics network around Vizhinjam, enabling seamless movement of cargo through road, rail and sea. The logistics parks are also expected to attract value-added services such as container freight stations, cold storage units and distribution centres, generating employment and supporting industrial growth in the region.

The Vizhinjam port, once fully operational, is expected to handle large volumes of transshipment cargo. The addition of multimodal logistics parks is seen as a timely intervention to ensure last-mile connectivity and efficient evacuation of cargo. The Kerala government believes these projects will enhance the competitiveness of the port, attract private investment and reinforce the state’s ambition to emerge as a major logistics gateway for India.