Kerala has identified around 930 acres for logistics infrastructure linked to Vizhinjam International Seaport, with acquisition proceedings under way for 230 acres as the state seeks to expand warehousing, container handling and related freight services around the port.
The details were disclosed in a government reply reported by The Times of India after BJP MLAs V Muraleedharan, Rajeev Chandrasekhar and B B Gopakumar raised an unstarred question on the shortage of storage facilities and high warehouse rentals in Thiruvananthapuram district. The reply said the government does not have a proposal to impose a uniform rental rate for private warehouses.
The government attributed the higher rentals to limited warehouse availability and high land prices in areas surrounding Vizhinjam. It said steps were being taken to identify and acquire land specifically for logistics infrastructure, while a subsidy mechanism was also being pursued to reduce additional costs arising from expensive land.
The proposed subsidy is intended to help private developers lease land at more affordable rates and encourage investment in local logistics facilities. However, warehouse rents in the private sector will continue to be determined through agreements between owners and users, based on prevailing market conditions, according to the reply.
Vizhinjam International Seaport Ltd has identified approximately 930 acres for logistics requirements. Acquisition proceedings for 230 acres are progressing, while the port company is holding discussions with logistics operators, container freight station operators, warehouse investors and shipping lines.
The state-owned Kerala State Industrial Enterprises has already started a container freight station at Vizhinjam. Under the state government’s 100-day action programme, the agency has also initiated a larger project covering warehousing facilities and a logistics park to support services connected to the container freight station.
The government is also pursuing a private-participation plan under Mission Samudra to address shortages of container freight stations, empty container yards and warehouses. It is preparing to invite expressions of interest from prospective investors and developers for free trade warehousing zones, container freight stations and empty container yards.
The land identification and acquisition programme is intended to build the supporting logistics network around the port, rather than limit Vizhinjam’s expansion to marine infrastructure alone. The next steps identified in the government reply are continued land acquisition, discussions with logistics and shipping operators, and the invitation of investor proposals for the planned facilities.
