Adani Ports and Special Economic Zone (APSEZ) is accelerating the Phase II expansion of Vizhinjam International Seaport due to a surge in transshipment volumes amid the West Asia crisis, which has pushed the port to its full capacity. Its strategic position, just 10 nautical miles from the East-West shipping corridor, has made it an attractive alternative for carriers seeking new hubs due to disruptions in Gulf ports. APSEZ CEO Ashwani Gupta confirmed during the Q4 FY26 earnings call that the port was operating at maximum capacity, with vessels waiting offshore during peak times. To address this overflow and prepare for future EXIM cargo, the company has decided to expedite the expansion.
The Phase II expansion aims to boost Vizhinjam’s annual handling capacity from 1.6 million TEUs to 5.7 million TEUs. The project includes significant infrastructure upgrades, such as extending the container berth to create a continuous 2-km quay—set to be India’s longest—and expanding the breakwater to 3.88 km. The terminal will be capable of accommodating five mother vessels simultaneously, each with a capacity of up to 28,000 TEUs, supported by additional cranes. APSEZ plans to invest around ₹16,000 crore in this development, with current operational efficiencies already exceeding designed capacity by 20-30%.
In addition to the expansion, APSEZ has signed a memorandum of understanding with Bharat Petroleum Corporation Limited to establish India’s first ship-to-ship LNG bunkering facility at Vizhinjam. Gupta highlighted the limited LNG bunkering infrastructure along the East-West trade corridor, positioning Vizhinjam to promote the use of LNG-powered vessels. Currently, the port has road connectivity for cargo evacuation, while rail connectivity is under consideration to support long-term growth in EXIM cargo, as noted by APSEZ CFO D. Muthukumaran.
