THIRUVANANTHAPURAM (February 23, 2026) — The Kerala government on Monday formalised agreements with three central public sector undertakings (PSUs) to implement a 2,000 crore rupee logistics master plan at the Vizhinjam International Seaport. The memoranda of understanding (MoUs), executed in the presence of Chief Minister Pinarayi Vijayan, are designed to transform the deep-water transshipment port into a comprehensive economic hub. The initiative ensures that while port operations remain under a Public-Private Partnership (PPP) framework, critical backend infrastructure will be maintained under public sector oversight.
Strategic Investment and Infrastructure Development
The master plan involves the state-owned Vizhinjam International Seaport Limited (VISL) and three major central entities: Indian Oil Corporation Limited (IOCL), the Container Corporation of India (CONCOR), and the Central Warehousing Corporation (CWC). According to a release from the Chief Minister’s Office (CMO), this partnership aims to safeguard national maritime interests and prevent the monopolisation of cargo handling.
The 2,000 crore rupee investment is allocated across three distinct strategic sectors:
- Energy and Bunkering: Indian Oil Corporation Ltd will invest approximately 700 crore rupees to establish large-scale bunkering facilities. This infrastructure is intended to fuel mother ships calling at the port, positioning Vizhinjam as a primary energy hub in the Indian Ocean.
- Multimodal Connectivity: CONCOR will commit roughly 600 crore rupees to develop rail-linked infrastructure. This includes the creation of inland container depots and container freight stations to facilitate the efficient movement of cargo across the national network.
- Warehousing and Cold Chain: The Central Warehousing Corporation will invest about 700 crore rupees to develop a 50-acre multimodal logistics park. The facility will feature cold storage and export-oriented units, providing a critical link for the region’s agricultural and industrial exports.
Public Sector Oversight and Economic Impact
By integrating these central PSUs, the state government intends to guarantee fair pricing for traders and ensure that the logistics ecosystem remains competitive. The CMO noted that these projects will be fully funded by the respective PSUs, ensuring the development of world-class infrastructure without placing a financial burden on the state exchequer.
The ceremony was attended by the Minister for Ports, V. N. Vasavan, and VISL Managing Director, Dr Divya S. Iyer, alongside senior leadership from the participating central companies. The move marks a shift from focusing exclusively on port construction to building a broader, port-led industrial ecosystem.
Sources
- The Hindu: “Kerala signs ₹2,000-crore public sector logistics pacts for Vizhinjam port” (February 23, 2026)
- Business Standard: “Kerala signs MoUs with central PSUs for ₹2,000 cr Vizhinjam logistics plan” (February 23, 2026)
- United News of India (UNI): “Kerala to unveil Rs 2,000 crore public sector logistics masterplan” (February 23, 2026)
- Press Information Bureau (PIB): “Port Development and Inland Waterways in Kerala” (February 13, 2026)
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