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Vizhinjam Port: Securing India's export future

08 May '25

8 min read

Vizhinjam Port: Securing India's export future

Insights

India's Vizhinjam Deepwater Port is poised to boost export competitiveness by cutting logistics costs and reducing reliance on foreign transhipment hubs.
The port's strategic location and infrastructure enable faster and cost-effective exports—especially for textiles.
It strengthens supply chain resilience, supports timely delivery and facilitates trade expansion to Europe and East Africa.

Economic rationale and trade efficiency gains

By serving as India’s first major domestic transhipment hub, Vizhinjam is expected to significantly reduce transport costs and transit times for exporters by as much as **–** per cent. This drastic improvement in trade efficiency will reduce India’s reliance on foreign transhipment hubs (such as Colombo, Dubai or Singapore) for handling large shipping vessels. Currently, about ** per cent of India’s container transhipment cargo is handled at overseas ports, causing an estimated $***–$*** million in revenue to be lost each year on transhipment fees. With Vizhinjam, much of this activity (and revenue) can be retained domestically, lowering overall logistics costs and boosting export competitiveness.