Vizhinjam International Transshipment Seaport notified as customs port, enabling direct export-import operations

Vizhinjam Customs Port Notification: How Deep‑Water Hub Boosts India’s Trade

The Central Board of Indirect Taxes and Customs has formally notified the Vizhinjam International Transshipment Seaport as a customs port, allowing direct export‑import (EXIM) cargo operations for the first time. The move follows the port’s rapid rise—handling 2 million TEUs within 18 months of commercial launch—and paves the way for a new gateway that could reshape India’s maritime logistics.

A transshipment port functions as an intermediate hub where containers are shifted from one vessel to another before reaching their final destination. This model streamlines global supply chains by reducing vessel turnaround time and consolidating cargo flows.

• ▸Vizhinjam has already accommodated some of the world’s largest container ships.
• ▸Within 18 months of opening, the port moved 2 million TEUs, underscoring its operational scale.
• ▸Transshipment hubs typically serve as cost‑effective alternatives to direct port calls for smaller carriers.

Geographical Advantage of Vizhinjam

Located on the southern tip of Kerala, Vizhinjam sits on a natural deep‑water basin that offers a draft of 16.5 metres—sufficient for ultra‑large container vessels. Its proximity to the busy east‑west shipping corridor, which links the Persian Gulf, the Malacca Strait and the South China Sea, gives it a strategic edge over regional competitors.

• ▸The port is India’s first Deep Water Port dedicated to container transshipment.
• ▸Being on the Indian Ocean’s western rim, it shortens sailing distances to the Gulf of Aden by up to 300 km compared with Colombo.
• ▸The site lies within the exclusive economic zone (EEZ) of India, reinforcing sovereign control over a key maritime chokepoint.

Legal and Policy Framework

Transport and shipping fall under the Union List of the Constitution, granting the centre exclusive legislative competence. The customs notification draws on the Customs Act 1962 and aligns with the broader policy direction set by the National Transport Development Policy Committee (NTDPC) in its 2019 report. The public‑private partnership (PPP) operates under the Design, Build, Finance, Operate and Transfer (DBFOT) model, a framework that allocates risk and investment between the state and private players.

• ▸Article 246 of the Constitution places shipping under Union jurisdiction.
• ▸The DBFOT contract obliges the private partner to finance, build, and operate the port for a stipulated concession period.
• ▸The NTDPC report recommends integrated multimodal connectivity to maximise port efficiency.
• ▸Customs clearance at Vizhinjam will be governed by the Customs Act’s provisions on import‑export procedures.

Infrastructure and Connectivity

Road links connecting the port to the national highway network have been completed, enabling swift movement of containers to inland destinations. A dedicated 10‑km rail corridor, featuring a 9‑km tunnel, will soon link Vizhinjam with the Balaramapuram line that runs between Thiruvananthapuram and Nagercoil, further integrating the port into the country’s freight rail system.

• ▸The rail line will reduce container drayage time to the hinterland by an estimated 30 percent.
• ▸A 9‑km tunnel, the longest in the region, mitigates terrain challenges posed by the Western Ghats.
• ▸Road connectivity includes a four‑lane expressway that links directly to NH 66.

Economic Implications

Opening Vizhinjam to EXIM cargo is expected to diversify India’s maritime trade routes, reducing reliance on traditional hubs such as Colombo and Singapore. By handling both transshipment and direct import‑export traffic, the port can generate higher customs revenue and create ancillary logistics jobs in Kerala’s coastal districts.

• ▸Direct export‑import operations could lift the port’s cargo handling capacity by an additional 1 million TEUs annually