Adani Ports and Special Economic Zone has accelerated the Phase II expansion of the Vizhinjam International Seaport after the port operated at full capacity during the peak of the West Asia crisis, with several vessels reportedly waiting offshore due to heavy transshipment demand.
The move underscores Vizhinjam’s growing strategic importance on global maritime trade routes as disruptions in the Gulf region and congestion at major West Asian ports continue to reshape shipping patterns and drive carriers toward alternative transshipment hubs.
Speaking during the company’s Q4 FY26 earnings call, APSEZ CEO Ashwani Gupta said the company had decided to advance the expansion timeline after witnessing a sharp increase in cargo diversion and vessel traffic.
“We are at 100% capacity at Vizhinjam already,” Gupta said. “In the West Asia crisis, we had many vessels waiting outside. So we are not waiting for phase 2, and we have kicked it off.”
He added that the port benefited from “transshipment overflow” during the regional crisis as operational disruptions impacted some competing facilities in the region. According to Gupta, APSEZ is now accelerating infrastructure development while also preparing to handle export-import (EXIM) cargo from the hinterland.
Located just 10 nautical miles from the busy international East-West shipping corridor connecting Europe, the Gulf and Asia, Vizhinjam has emerged as a key beneficiary of changing trade dynamics due to its proximity to global shipping lanes.
Under the Phase II expansion, the port’s annual handling capacity is expected to rise significantly from the current 1.6 million TEUs to nearly 5.7 million TEUs. The project includes extending the existing container berth into a continuous 2-km-long quay, which would become the longest container berth in India.
The expansion will also involve extending the breakwater to 3.88 km, creating additional container yards through sea reclamation, and deploying more ship-to-shore and yard cranes to handle next-generation mega container vessels of up to 28,000 TEU capacity.
Once completed, the terminal will be capable of simultaneously handling five mother vessels, strengthening its position as a major transshipment hub in the Indian Ocean region.
During the company’s earlier Q3 FY26 earnings call, Gupta had revealed that APSEZ plans to invest around Rs 16,000 crore in the Phase II development. He noted that operational efficiencies at the port were already enabling throughput levels 20-30% higher than the designed nameplate capacity.
In a parallel strategic initiative, APSEZ has signed an MoU with Bharat Petroleum Corporation Limited to establish India’s first ship-to-ship LNG bunkering facility at Vizhinjam.
Gupta had earlier pointed out that LNG bunkering infrastructure remains limited along the international East-West trade corridor, with facilities at Jebel Ali and Colombo still facing challenges. He said Vizhinjam’s location close to international waters would encourage more shipping lines to deploy LNG-powered vessels on the route.
While the port is currently focused primarily on transshipment operations, APSEZ is also planning for long-term EXIM cargo growth through improved hinterland connectivity.
APSEZ CFO D Muthukumaran said the port already has road connectivity for cargo evacuation, while rail connectivity plans are under evaluation to support future cargo movement requirements.
