No land for container yards: Kerala may watch as Vizhinjam gains go to Tamil Nadu when exports begin

THIRUVANANTHAPURAM: Kerala could fail to reap the benefits of Vizhinjam port when it becomes a fully operational export-import (EXIM) port from August 18 if land is not made available for logistics and industrial parks and container yards. The port also needs facilities for logistics, warehousing, cold chains and container repair. Otherwise, Kerala may have to watch as neighbouring Tamil Nadu attracts investors.

The government has given the port company permission to acquire 200 acres of land within a 10-km radius of the port at a cost of ₹1,000 crore. The acquisition process, including issuing the notification, will take at least 15 months to complete.

In the first phase, land needs to be allotted to central public sector undertakings such as the Central Warehousing Corporation, Container Corporation of India and Indian Oil Corporation. Together, these agencies have projects worth ₹2,000 crore.

Although there are many private investors interested in setting up projects, the lack of land remains a major hurdle. The Kerala State Industrial Enterprises (KSIE) has been seeking 10 acres of land for a freight station for the past two years. Land acquisition through KINFRA has also made little progress. A government announcement that plantations whose lease periods had expired would be acquired has also not been implemented.

Land expensive in Kerala, readily available across the border

Private investors have been willing to acquire land directly, but many are backing out after finding land prices unaffordable.

Tamil Nadu has established logistics and industrial parks near the border. Land is being offered there on a 99-year lease at ₹30 lakh per acre. Four-lane road access, rail connectivity, electricity, water and waste-management facilities are also being assured.

Projects waiting for land

• Container Corporation of India’s multi-modal logistics park and container station
• Central Warehousing Corporation’s warehouse and logistics complex
• Indian Oil Corporation’s 20-acre bunkering facility for supplying fuel to ships
• Central Warehousing Corporation requires 50 acres adjoining the railway line

Parks need 10 acres

Logistics parks are required for storing containers, carrying out repairs and transporting them by trucks.

On average, around 10 acres of land is required for logistics and industrial parks. Such land is available on a 99-year lease in the neighbouring state. Recently, KINFRA offered 60-year leases at Invest Kerala. Port-based industries would require longer lease periods.

The investment expected from Vizhinjam was ₹3 lakh crore.