APSEZ advances Vizhinjam Port expansion to resolve Kerala dispute

26 Mar 2024 CW Team

APSEZ has agreed to advance the capacity expansion of Vizhinjam Port to 2028, much earlier than the initial timeline, to settle arbitration with the Kerala government. The port will handle three million TEUs from a two km-long berth.

The Kerala government has allowed a five-year extension to complete the first phase. Rs 2.19 billion due to APSEZ will be withheld, with Rs 1.752 billion released upon project completion in 2028.

Adani Vizhinjam Port will withdraw all arbitration claims. Revenue sharing remains unchanged until 2034. A supplementary agreement is required for the new terms. The project is supported by a VGF of Rs 16.35 billion, shared by the Union and Kerala governments. The Kerala government will share 20% of its annual revenue with the Centre until the VGF is repaid.

Vizhinjam aims to compete with Colombo as a container transhipment port, with an investment of Rs 77 billion, including a Rs 40.89 billion PPP component.

Infrastructure Urban

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