Kerala has identified around 930 acres for logistics infrastructure linked to Vizhinjam seaport, with acquisition proceedings under way for 230 acres as the state seeks to address limited warehousing capacity and high rental costs in Thiruvananthapuram district.
The details were disclosed by chief minister V D Satheesan in reply to an unstarred question raised by BJP MLAs V Muraleedharan, Rajeev Chandrasekhar and B B Gopakumar. The government acknowledged that warehouse facilities in areas surrounding the port remain limited, while high land prices and inadequate storage infrastructure have contributed to higher rentals compared with other locations.
Vizhinjam International Seaport Ltd (VISL) has identified the 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.
Kerala State Industrial Enterprises has already started a container freight station at Vizhinjam. Under the state’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 state is also pursuing Mission Samudra, a plan intended to address shortages of container freight stations, empty container yards and warehouses through private participation. The government is expected to invite expressions of interest from prospective investors and developers for free trade warehousing zones, container freight stations and empty container yards.
To reduce the impact of high land prices, the government is taking steps to identify and acquire land specifically for logistics infrastructure. It is also pursuing a subsidy mechanism that would reduce additional costs arising from expensive land, allowing private developers to lease land at more affordable rates and encouraging investment in local logistics facilities.
The government, however, has ruled out fixing a standard rental rate for private warehouses. Satheesan said rentals would continue to be determined through agreements between warehouse owners and users, based on prevailing market conditions. No proposal to introduce a uniform rate for private warehouse rentals is under consideration.
