The Kerala government has asked the Centre to bear the entire estimated ₹1,800 crore cost of the proposed railway link connecting Vizhinjam International Seaport with the national rail network, arguing that the project will deliver substantial benefits beyond the state.
The proposed 10.7-km rail corridor will connect Vizhinjam port with Balaramapuram railway station on the Southern Railway network. The project is expected to provide a faster and more cost-effective route for moving containers from the deep-water port to destinations across India.
Kerala seeks central funding
Kerala has made its funding request against the backdrop of the project being included in the PM Gati Shakti National Master Plan. While the inclusion provides a framework for improving multimodal logistics connectivity, funding allocation remains subject to a decision by the Centre.
The state has argued that the railway line should be treated as a national logistics infrastructure project because much of the cargo handled through Vizhinjam will ultimately move to markets and industrial centres outside Kerala.
According to the state government’s reasoning, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana are among the southern states that could benefit significantly from improved rail connectivity to the port. Increased cargo movement would also generate additional revenue for Indian Railways and the Union government, Kerala has pointed out.
Project cost may rise to ₹1,800 crore
The detailed project report approved by Kerala puts the project cost at ₹1,482.92 crore, while Railway estimates have placed the cost at around ₹1,600 crore. However, higher land and railway-development costs could push the final expenditure to approximately ₹1,800 crore by completion.
Around ₹198 crore is expected to be required for acquiring approximately 5.52 hectares of land. The project will also require changes at Balaramapuram station, including relocation of the station, construction of a container yard and modifications to tracks and gradients. Kerala is expected to spend about ₹243 crore on these railway-related works.
Major tunnel-based connectivity project
The rail link is being planned largely as a tunnel-based corridor. Earlier tender documents from Konkan Railway Corporation indicated a construction package involving a broad-gauge rail connection between Balaramapuram and Vizhinjam, including a tunnel of roughly 9 km, along with bridges, track work, electrification, signalling and telecommunications systems.
The proposed connection is intended primarily for freight movement, allowing containers arriving at Vizhinjam to be transferred efficiently onto the Indian Railways network instead of relying predominantly on road transportation.
Construction and operations
Construction and maintenance of the line will be undertaken by Vizhinjam International Seaport Limited (VISL), while the Railways will oversee the project and train operations. The construction agreement is between VISL and Southern Railway, with Konkan Railway Corporation entrusted with the construction work. The tendering process is already under way, with the construction contract expected to be awarded during 2026.
Strategic importance for Vizhinjam
The rail connection is expected to strengthen Vizhinjam’s role as a major container transshipment hub. The port is being developed as a deep-water transshipment facility designed to handle large container vessels and connect directly with major international shipping routes.
A dedicated rail connection would improve the port’s hinterland connectivity, reduce dependence on road transportation and potentially lower logistics costs for cargo moving between the port and industrial centres across southern and central India.
Kerala is therefore seeking full central financing rather than bearing the project’s cost alone. The state’s leadership is also expected to take up the funding request directly with the Prime Minister as it seeks faster implementation of the rail link.
