Coastal Shipping & Inland Waterways: Unlocking Blue Economy Opportunities at Vizhinjam Port in Kerala

The development of the Vizhinjam International Seaport in Kerala is a major milestone in India’s maritime and logistics landscape. While it is poised to become a transshipment and container cargo hub, one of the most sustainable and economically transformative extensions of its capabilities lies in coastal shipping and inland waterway development. These modes of transport offer low-cost, eco-friendly alternatives to road and rail, and provide immense potential to enhance regional trade, reduce logistics costs, and stimulate local economies.

What is Coastal Shipping?

Coastal shipping involves the movement of cargo and passengers between ports along the coast, typically within the same country. In India, it refers to the transport of goods using ships operating between domestic ports along the western and eastern coastlines.

What are Inland Waterways?

Inland Waterways refer to navigable rivers, canals, and backwaters used for transporting cargo and passengers. In India, these are managed by the Inland Waterways Authority of India (IWAI), with designated National Waterways such as NW-3 (West Coast Canal) being of particular importance to Kerala.

Why Coastal and Inland Waterway Transport Around Vizhinjam Makes Sense

  • Strategic Location: Vizhinjam lies on India’s southern coast, ideally situated to link ports like Kochi, Mangalore, Chennai, and Tuticorin via coastal shipping.
  • Close to National Waterway 3: NW-3 runs from Kollam to Kottapuram and can be connected to Vizhinjam with minor infrastructure enhancements.
  • Reduced Congestion: Diverting cargo to waterways reduces pressure on roads and railways, especially in densely populated Kerala.
  • Cost-effective: Water transport costs a fraction of road transport per tonne-kilometer, and is far more fuel-efficient.
  • Eco-friendly: Lower carbon footprint and noise pollution, making it a preferred mode for sustainable logistics.

Key Opportunities for Coastal Shipping at Vizhinjam Port

1. Short-Sea Cargo Movement

Vizhinjam can act as a hub for short-sea cargo traffic to nearby domestic ports such as:

  • Kochi Port: Redistribution of transshipped containers inland via barges and small coastal ships.
  • Chennai & Tuticorin: Direct coastal cargo for commodities like fertilizer, rice, textiles, and electronics.
  • Mangalore & Goa: Coastal iron ore, spices, and industrial equipment movement.

2. Containerized Coastal Trade

Businesses can move containers between coastal cities using scheduled barge and feeder services. This helps manufacturers in hinterlands connect to Vizhinjam for exports, and allows imports to reach consumption centers inland at lower costs.

3. RO-RO and RO-PAX Services

Roll-on/Roll-off (RO-RO) services enable trucks, vehicles, and passengers to board ferries and reduce highway congestion. Vizhinjam can develop dedicated terminals for:

  • Truck transport to Kochi, Beypore, and Lakshadweep
  • Passenger services between Trivandrum, Kollam, and Alappuzha
  • Vehicle transport and tourism circuits across Kerala’s coastline

4. Bulk Cargo Movement

Commodities like cement, coal, petroleum products, salt, and construction materials can be moved along the coast. With appropriate infrastructure such as silos and conveyors, coastal shipping becomes ideal for bulk supply chains.

Scope for Inland Waterway Integration

1. Linking Vizhinjam with NW-3

National Waterway 3 (West Coast Canal) extends from Kollam to Kottapuram, passing through Alappuzha and Kochi. A waterway link between Vizhinjam and Kollam can enable seamless cargo and passenger movement across Kerala’s backwaters.

2. Last-Mile Distribution Through Canals

Coastal cargo reaching Vizhinjam can be transferred to barges and small boats to reach local markets via Kerala’s extensive canal system. This decentralizes distribution and supports rural economies.

3. Tourism and Water Taxi Services

Inland waterways can also be used for tourism and public transport. Opportunities include:

  • Luxury houseboat circuits for cruise passengers docking at Vizhinjam
  • Water taxi services to Kovalam, Poovar, and Varkala
  • Eco-tourism linkages to mangrove forests and backwater villages

Infrastructure Requirements

  • Dedicated coastal berths and barge terminals at Vizhinjam
  • Warehousing, container freight stations, and cold storage facilities at inland waterway access points
  • Mechanized loading/unloading systems for RO-RO operations
  • Port community systems and real-time cargo tracking tools
  • Dredging and navigational aids for safe barge movement

Business Opportunities in Coastal & Inland Waterway Logistics

  • Fleet Operators: Establish barge, ferry, and cargo boat fleets serving Vizhinjam-linked routes
  • Logistics Aggregators: Provide integrated services bundling coastal + last-mile delivery
  • Infrastructure Developers: Build jetties, RO-RO terminals, barge loading points, and canal ports
  • Tour Operators: Launch cruise, sightseeing, and heritage water tours
  • Technology Providers: Develop waterway navigation, booking, and cargo tracking software

Case Studies from India and Abroad

Region Model Outcome
Kerala (NW-3) Backwater cargo and ferry network Boost to tourism and local trade in Alappuzha and Kochi
Bangladesh Riverine container terminals Lower logistics cost and improved trade with India
Netherlands Barge connectivity from ports to inland cities Reduced truck traffic and CO2 emissions
Gujarat RO-RO ferry between Ghogha and Hazira Shortened road distance by over 300 km, saving fuel and time

Policy Support and Recommendations

  • Integrate Vizhinjam in India’s Coastal Shipping Development Plan under Sagarmala
  • Provide incentives such as viability gap funding (VGF) for ferry and barge operators
  • Develop Green Channel clearances for coastal cargo at Vizhinjam
  • Promote public-private partnerships for inland water terminal construction
  • Offer tax relief and port fee waivers for domestic shipping routes

Environmental and Socioeconomic Benefits

  • Carbon Reduction: Shift from road to water transport cuts greenhouse gas emissions
  • Lower Logistics Costs: Supports competitiveness of Kerala’s exports
  • Inclusive Development: Boosts economic activity in rural and coastal communities
  • Decongestion of Highways: Less pressure on Kerala’s already stressed road infrastructure

Conclusion

Coastal shipping and inland waterways present a powerful opportunity to diversify Kerala’s transportation mix while maximizing the strategic advantages of Vizhinjam Port. With the right mix of infrastructure, policy, and private sector participation, Vizhinjam can emerge as a sustainable and efficient logistics hub for southern India — not just by sea, but through its rivers, backwaters, and coastal links. Harnessing these blue economy pathways will unlock long-term economic growth, environmental sustainability, and regional connectivity for Kerala and beyond.

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