The state government has extended the mandate of the Project Implementation Committee (PIC) to acquire land for port-led industrialisation in connection with the Vizhinjam International Seaport project.

In May 2024, the Managing Director, VISL, reported that the 58th meeting of the Board of Directors decided to focus on port-led industrialisation, leveraging the potential of the Port.

It was cited that to develop an ecosystem for industries near the Vizhinjam Port, VISL requires a minimum of 600 acres of land for the commencement of gateway traffic. The MD, VISL requested sanction to acquire 70 - 100 acres of land for developing a port-led industrial cluster in the Vizhinjam area in proximity to the port.

The Government reconstituted the bid evaluation/empowered committee as the PIC in 2015 to take significant decisions in respect of the concession agreement signed for the project. The ten-member committee is chaired by the Chief Secretary.

Vizhinjam International Seaport, after successful completion of its Phase 1 with an installed capacity of 10 lakh TEU (Twenty-foot Equivalent Unit) in December 2024, was dedicated to the nation by the Prime Minister in May 2025. The port is implementing capacity enhancements to triple its current capacity before 2028 (from 1 million TEUs/annum to 3 million TEUs/annum). It also aims to complete the last-mile rail connectivity to the port by 2028.

Establishing gateway traffic will attract investors to set up industries near the port, especially those focused on importing raw materials and exporting finished goods at competitive rates. This will enable investors to access the world market at competitive rates, as noted in the government's order.