Kerala’s new government plans to develop an integrated logistics network connecting the state’s ports to shift a significant share of cargo movement from roads to waterways, reduce traffic congestion and strengthen shipping and export activities.
Chief Minister V D Satheesan told news agency PTI on October 9 that the government was consulting maritime and shipping experts to formulate the network and maximise the potential of Kerala’s 600-km coastline. The initiative is also expected to create fresh opportunities in the blue economy and improve the efficiency of the state’s logistics sector.
The government aims to reduce road congestion by moving a larger share of cargo transport to the sea. “In logistics, for example, we have to reduce the density of vehicles on the roads to shift logistics to the sea, 50 per cent,” Satheesan said.
A key component of the strategy is Vizhinjam International Seaport, which has commenced export-import operations. Located around 10 nautical miles from an international shipping route, the port is expected to play a pivotal role in strengthening maritime connectivity and facilitating links with other ports along Kerala’s coastline.
The state’s broader development agenda includes promoting cruise tourism, improving connectivity through its 44 rivers and expanding exports of agricultural products and spices. The government also plans to encourage value-added industries and explore opportunities in logistics, minerals and other blue economy activities.
Under the state budget’s proposed Southern Economic Corridor, port-related activities are envisaged for Thiruvananthapuram, mineral-sector development for Kollam and blue economy initiatives for Alappuzha.
Additional proposals include an international convention centre in Kochi, an aircraft maintenance, repair and overhaul (MRO) facility, pilot training facilities in Kannur, helicopter training and expanded air cargo services. These initiatives are intended to diversify economic activity, strengthen transport infrastructure and generate new investment opportunities.
MSC Share Transfer Proposal Under Review
Separately, Satheesan said an empowered committee headed by the Chief Secretary was examining the proposed transfer of shares in Vizhinjam International Seaport to Mediterranean Shipping Company (MSC).
The transaction requires approval from the state government under the concession agreement, along with strategic clearance from the Union Ministry of Home Affairs. The state government will review the committee’s findings after the required central clearance is received.
Satheesan said safeguarding Kerala’s interests and preventing the creation of a monopoly would be key considerations in the decision.
The proposed integrated port network, combined with investments in multimodal connectivity and export-oriented industries, could strengthen Kerala’s position in maritime trade while enabling a gradual shift towards more efficient and sustainable cargo movement.