Vizhinjam port to generate Rs 2.15 lakh crore revenue in 40 years, expand capacity to 45 lakh containers

THIRUVANANTHAPURAM: The second, third and fourth phases of the Vizhinjam International Port will be completed by December 2028, significantly increasing the port's container-handling capacity to 45 lakh TEUs (Twenty-foot Equivalent Units) per year. The expanded operations are projected to generate total revenues of ₹2,15,000 crore over the 40-year concession period, with the Kerala government expected to receive ₹35,000 crore in revenue share and Rs 29,000 crore in GST collections.

Additional revenues through corporate and direct income taxes will bring the government’s total earnings to an estimated Rs 48,000 crore during the 36-year operational period. Vizhinjam is set to become South India’s largest container terminal by capacity, leveraging automated systems to enhance efficiency.

Ahead of the port’s commissioning, a supplementary concession agreement was signed between Adani Ports CEO Pranav Chaudhary and Port Secretary K S Srinivas, in the presence of Chief Minister Pinarayi Vijayan. The agreement includes revisions to financial terms and timelines:

• The government will begin receiving its revenue share from 2034.
• The port’s minimum installed capacity of 30 lakh TEUs will be increased to 45 lakh TEUs with the use of advanced automated systems.

Key officials, including Minister V N Vasavan, Vizhinjam Port Company CEO Pradeep Jayaraman and Managing Director Divya S. Iyer, attended the event.

The Rs30 crore compensation previously payable by the government for delays in land acquisition has been waived. The viability gap funding, initially set at Rs 408.90 crore, has been reduced to Rs 365.10 crore—a Rs 43.80 crore reduction. Of this, Rs 189.90 crore will be paid immediately, with Rs175.20 crore payable upon completion of all phases. Adani Ports will invest Rs 10,000 crore in the development of the second, third and fourth phases.

Phase-wise expenditure details

• First phase expense: Rs 8,867 crore
  • State government share: Rs 5,595 crore
  • Expenditure so far: Rs 2,159.39 crore
  • Adani’s contribution: Rs 2,454 crore
  • Pending central government share: Rs 817.80 crore