The Kerala government has expedited the development of the greenfield port project in Kannur. This initiative, announced on Wednesday, aims to transform the northern district of Kannur into a major industrial and trade hub through the establishment of the Kannur Azhikkal International Greenfield Port, alongside associated industrial parks and special economic zones.
The state cabinet, under the leadership of Chief Minister Pinarayi Vijayan, has approved the draft project report put forward by Malabar International Port and SEZ Limited (MIPSL), the entity responsible for executing the port development. This greenfield port is designed to handle Panamax-sized container ships, capable of carrying between 5,000 TEUs and 8,000-75,000 DWT, with a draught depth of 14.1 metres. To support this ambitious project, the government has endorsed a financial structure report prepared by the Centre for Management Development (CMD), which will guide the funding and operational aspects of the port’s development. MIPSL, established as a special purpose vehicle with the Chief Minister as its chairman, will oversee the project’s implementation.
The port’s development includes the construction of a comprehensive industrial park and special economic zones, aimed at fostering significant economic activity and increasing export-import trade. The project also features an innovative financial model where the concessionaire is expected to share a portion of the revenue with the government from the project’s outset. This arrangement is designed to alleviate potential financial burdens on the state for subsequent phases of development. Further, the state has received in-principle approval for “viability gap funding” (VGF) from the central government, which will aid in bridging the financial gaps. A detailed geotechnical investigation of the project site was completed in January 2022, and initial steps are underway for land acquisition across Kannur, Kasaragod, Wayanad, and Kozhikode districts for the industrial park and other uses. Tata Consulting Engineers Limited (TCE) has already submitted reports outlining the special economic zones and hinterland business potential, with the master plan for the project currently under preparation.
This accelerated pace in the port development project underscores Kerala’s commitment to enhancing regional economic infrastructure and positioning Kannur as a key player in international trade.
