Vizhinjam EXIM operations begin: Why the new global trade route matters for Keralam’s MSMEs

Thiruvananthapuram: The commencement of export-import (EXIM) operations at Vizhinjam International Seaport is expected to provide exporters in Keralam with a faster and more direct route to global markets, while improving competitiveness and cash flows for micro, small and medium enterprises (MSMEs), Adani Ports and Special Economic Zone CEO and Whole Time Director Ashwini Gupta said on Tuesday.

Addressing the launch of EXIM operations, Gupta said the port's transition from a transshipment facility to handling export-import cargo would create a new gateway between India and global markets.

Faster route for exporters

Gupta said exporters of seafood, spices, cashew nuts and engineering goods would benefit from quicker access to international markets.

"For MSMEs, every day saved in transit improves competitiveness, cash flows and the growth potential," he said.

Importers, too, would gain from faster access to raw materials and more efficient supply chains, enabling quicker conversion into finished products for domestic consumption and exports.

The development would also help retain more cargo, value creation and economic activity within Keralam and India, Gupta said.

Port handled 2.3 million TEUs

Gupta said Vizhinjam had handled more than 2.3 million TEUs in its first full year of operations and captured nearly 30% of India's transshipment container market.

The port has also handled ultra-large container vessels measuring nearly 400 metres, he said.

He added that the next phase of development would depend partly on completing road and rail connectivity, which would allow Vizhinjam to serve businesses across Keralam as well as Andhra Pradesh, Karnataka and Tamil Nadu.

₹16,000 crore Phase 2 expansion

Adani Ports has committed an additional ₹16,000 crore for Phase 2 of the project. The expansion is expected to increase the port's capacity from 1.6 million TEUs to 5.7 million TEUs.

The next phase will include new infrastructure, bunkering facilities, a liquid jetty and an integrated logistics ecosystem.

Keralam Minister P K Kunhalikutty said the port could become a backbone for the state's traditional industries by providing access to better markets for products made in Keralam.

Meanwhile, Vijoy Kumar Singh, Director (International Marketing & Operations), Container Corporation of India, said the PSU was keen to associate with Vizhinjam in the future.

Geromic George, Managing Director of Vizhinjam International Seaport Limited, described the launch of EXIM operations as a "major milestone" and said it could help accelerate Keralam's industrialisation.

He said the aim was to develop a strong port ecosystem around Vizhinjam, supported by logistics, industries and economic clusters.