Business Kerala

Vizhinjam begins direct export-import: boost for Kerala MSME sector

Vizhinjam, Kerala’s deepwater port, moves beyond transshipment as direct export-import cargo operations begin, offering exporters faster routes, lower logistics costs and access to global shipping networks.

Dhanam News Desk

Vizhinjam International Seaport has taken a major step towards becoming a full-fledged gateway for international trade, with direct export-import (EXIM) cargo operations commencing on August 18.

Chief Minister VD Satheesan inaugurated the service and flagged off the first export container during a ceremony held at the port premises in Thiruvananthapuram.

The development marks a significant shift for Kerala’s maritime economy. Since commercial operations began in December 2024, Vizhinjam has primarily functioned as a transshipment hub, transferring containers between large mother vessels and feeder ships. With direct EXIM services now available, exporters and importers can use the port to move cargo directly to and from international markets.

The launch is expected to strengthen Kerala’s position in global trade, reduce logistics costs and improve the competitiveness of businesses in the state and neighbouring regions.

With direct connectivity to 107 countries across the globe, including the US and European markets, Kerala's products can now reach international markets at lower logistics costs.

Support for MSMEs and agriculture

  • Maiden shipment: The first dry container containing food products from Nilamel Exports (operating out of Kinfra and Sasthamangalam) set sail for Valencia, Spain, aboard Mediterranean Shipping Company's (MSC) Himalaya Express service.

  • Direct trade routes: Direct vessels will connect to European nations such as Portugal, Spain, and Italy, along with Southwest African destinations including Conakry, Abidjan, Tema, and Lomé via the India-Africa service.

  • Commodities boosted: Perishable goods like processed fish, vegetables, spices, honey, and fresh flowers—alongside Kudumbashree products, raw cashew, coir, and textiles—can now be exported without relying on intermediaries.

  • Raw material inflow: Direct imports of raw cashews from African ports will significantly benefit the cashew industry centered around Kollam.

Significant transit time reductions

Keralal exporters previously relied on transshipment via Colombo, Singapore, Dubai, Tuticorin, or Chennai. According to Babu Bhatt, pesident of the Seafood Exporters Association of India (Kerala Region), direct mother vessel calls eliminate intermediate transfers and cut transit times by approximately 30–35%:

  • Europe: Reduced from 45–50 days to 30–35 days (Spain reachable in 28 days).

  • United States: Dropped from 60–65 days to 37–44 days.

  • Canada: Slashed from 90 days down to 40–45 days.

₹400-crore 'Mission Samudra' announced

The chief minister also unveiled the ₹400-crore 'Mission Samudra' initiative, aimed at developing port-adjacent industrial clusters, warehousing zones, and logistics infrastructure to position Kerala as a premier global maritime hub. The expansion is projected to generate tens of thousands of jobs across customs clearance, warehousing, and transportation while curbing transshipment revenue leakage from India.

From transshipment hub to trade gateway

Vizhinjam’s biggest advantage is its location close to major international shipping routes. The port’s natural depth allows it to accommodate some of the world’s largest container vessels, while its growing connectivity is expected to make it an increasingly important gateway for southern India.

Until now, businesses seeking direct international cargo services have often had to depend on other ports or transshipment hubs. The availability of EXIM services at Vizhinjam could change that equation.

Kerala’s traditional export sectors — including seafood, spices, coir, cashew and other manufactured products — could benefit from more direct access to overseas markets. Exporters from Tamil Nadu and Karnataka may also find Vizhinjam an attractive alternative for international cargo movement.

Lower costs, faster movement

Direct EXIM operations are expected to eliminate some of the additional handling and transshipment involved when cargo is routed through other ports.

The Kerala government expects the move to reduce cargo transportation costs, improve supply-chain efficiency and enhance the competitiveness of Indian exporters. It could also encourage new investments in logistics, warehousing and manufacturing around the port.

The development comes at a time when Vizhinjam is rapidly increasing its container-handling capacity. The port handled two million TEUs within 18 months of starting commercial operations and has attracted some of the largest container ships in the world.

Customs rules for EXIM cargo

The initial EXIM operations will operate under specific Customs conditions.

As there is currently no designated Container Freight Station (CFS) at Vizhinjam, the port will initially handle only full-container-load cargo that can move directly between the terminal and the importer or exporter.

For imports:

  • Only eligible full-container-load (FCL) consignments will be permitted.

  • Containers must be moved directly from the port to the importer’s premises within 48 hours of landing.

  • Less-than-container-load (LCL) cargo and loose cargo will not be permitted.

  • Containers requiring de-stuffing or CFS examination will also be excluded until a designated CFS becomes operational.

For exports:

  • The port will accept factory-stuffed, self-sealed or Customs-sealed FCL containers.

  • Cargo requiring loose stuffing, examination or carting within the port yard will not be permitted initially.

Road transshipment between Vizhinjam and other notified Customs stations, including Inland Container Depots, CFSs, Special Economic Zones and Land Customs Stations, will also be allowed.

Boost for logistics and investment

The opening of direct EXIM services is likely to create demand for a wider ecosystem of logistics and support businesses around Vizhinjam.

Customs brokers, freight forwarders, transport operators, warehousing companies and other logistics service providers are already looking at opportunities around the port.

The Kerala government is also planning to develop additional land around Vizhinjam for logistics, warehousing and related industrial activities. Better road and rail connectivity will be crucial to ensuring that the port’s international shipping advantage translates into an economic advantage for Kerala.

A proposed rail link between Vizhinjam and Balaramapuram and improved road connectivity to NH-66 are expected to strengthen the port’s hinterland connectivity.

For Vizhinjam, the transition from a transshipment-only facility to a full export-import gateway could be the beginning of an even bigger transformation — from a port that handles global cargo to one that helps generate a larger share of Kerala’s own trade.

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