Adani Group to pump ₹13,000 crore into Vizhinjam Port expansion

Adani Ports and Special Economic Zone Ltd (APSEZ), a leading ports and logistics arm of the Adani Group, is set to invest approximately ₹13,000 crore to scale up the capabilities of the Vizhinjam International Deepwater Seaport in Thiruvananthapuram. The project, officially inaugurated by Prime Minister Narendra Modi on May 2, has been partially operational since the previous year. The new funding from the company of Gautam Adani will fuel the second phase of development, slated for completion by 2028.

The budget

The initial phase, backed by a ₹7,000 crore public-private partnership, saw APSEZ contribute ₹4,300 crore. “We will invest ₹12,000 crore to ₹13,000 crore in the second phase, and the entire money will be invested by APSEZ,” said Karan Adani, Managing Director of APSEZ, in response to a question.

This expansion aims to boost the port’s capacity from 1 million TEUs (twenty-foot equivalent units) to 5 million TEUs, positioning Vizhinjam as a major player in global maritime trade.

The objective

Located just 10 nautical miles from the east-west international shipping corridor, Vizhinjam is strategically placed to serve as a vital transhipment hub, reducing India’s dependence on foreign ports like Colombo, Singapore, and Dubai. Adani highlighted that the port could slash logistics costs for Indian manufacturers by 30-40%, bolstering the nation’s export competitiveness and strengthening its maritime infrastructure.

For the fiscal year 2026, APSEZ plans to allocate ₹12,000 crore across its port operations in India and overseas, with ambitions to explore opportunities in Southeast Asia and East Africa.

Vizhinjam Port expansion details

During the port’s dedication ceremony, Prime Minister Modi said its capacity was expected to triple in the coming years, enabling it to accommodate some of the world’s largest cargo vessels. He noted that 75% of India’s transhipment activities were previously handled by foreign ports, resulting in significant revenue losses for the country.

The project features India’s deepest breakwater, constructed at a cost of ₹1,387 crore, fully funded by the Kerala government. In 2015, the state signed a deal with APSEZ, granting the company a 40-year concession to develop, operate, and eventually transfer the port, with an option to extend for another 20 years. Trial operations kicked off in July 2024 with the arrival of the San Fernando, followed by ultra-large container vessels MSC Claude Girarde in September 2024 and MSC Türkiye in April 2025—the largest ships ever to dock at an Indian port. Since starting operations, Vizhinjam has managed over 280 vessels and 6 lakh TEUs.

With a natural draft of 18 meters near the shore and no need for capital dredging, Vizhinjam is well-equipped to handle next-generation container ships requiring drafts exceeding 20 meters, further cementing its role as a game-changer in India’s maritime landscape.