Vizhinjam Port handles 1 million containers in 9 months, generates over ₹75 cr in tax revenue

Thiruvananthapuram: The government of Kerala has been buoyed by the arrival of 1 million containers at Vizhinjam port, which has already generated substantial tax revenue. As of July 31, the port had collected ₹69 crore in GST, with half going to the Centre and half to the State.

In the same period, Vizhinjam handled 9,08,040 containers and saw the arrival and departure of 419 ships. The Adani Group, which operates the port, collected ₹384 crore in user fees, from which 18 percent will be collected as GST, further adding to government revenues.

In August alone, over one lakh containers arrived on 40 ships, generating nearly ₹40 crore in income. Of this, around ₹7 crore will be collected as GST, pushing the port’s tax revenue beyond ₹75 crore. This figure only reflects GST on user fees; the Centre and State will also receive additional tax on port operations and cargo handling. The government will begin receiving its share of direct revenue from the port only in 2036.

Vizhinjam is set to become the first port in South Asia to handle 1 million containers within 9 months of commencing operations. Semi-automatic cranes have played a key role in speeding up container handling.

The introduction of the Mediterranean Shipping Company’s (MSC) Jade Service and African Service via Vizhinjam, along with its inclusion in MSC’s global shipping network, has boosted cargo movement. Additionally, the Adani Group’s global experience in port operations has played a key role in Vizhinjam’s rapid development.