India’s transshipment landscape is undergoing a major shift as Vizhinjam International Seaport sharply reduced cargo volumes handled at Vallarpadam ICTT during FY26. The rapid ramp-up of operations at the new Kerala port has diverted significant transshipment traffic that was previously routed through DP World’s Vallarpadam terminal in Kochi.
Industry data indicates Vallarpadam’s transshipment volumes dropped by nearly 50 percent in FY26 as shipping lines increasingly opted for Vizhinjam’s deeper draft, modern infrastructure and strategic location near key east-west trade routes. The shift marks one of the most significant cargo redistributions in India’s port sector in recent years.
The development highlights Vizhinjam’s growing role as a competitive transshipment hub capable of retaining cargo that traditionally moved through foreign ports such as Colombo, Singapore and Dubai. For Vallarpadam, the decline underscores rising domestic competition and the need to reposition its service offerings.
Analysts expect both ports to continue evolving with distinct strengths, but Vizhinjam’s early gains signal a new chapter in India’s ambition to strengthen its maritime gateway network.