Jose Paul is a veteran port administrator with over three decades of experience in India’s maritime sector. Born in Njarackal in Ernakulam district, he began his career at the Cochin Port, before becoming the acting chairman of Navi Mumbai’s Jawaharlal Nehru Port and then the chairman of Mormugao Port.
In an exclusive chat with TNIE, he talks about the need for private investments in Indian ports, the scope and significance of the Vizhinjam port and how Kerala looks at port-oriented economic growth. Edited excerpts:
You have experience working in various ports. What is your opinion with regards to MSC's investment in the Vizhinjam port?
MSC is the world’s largest container shipping company, controlling about 21% of the global market and operating more than 1,000 vessels. Through its sister company, Terminal Investment Limited, it also runs around 40 container terminals in 27 countries. Its decision to invest around Rs 13,000 crore for a 49% stake signals a long-term commitment to Vizhinjam. Such an investment is not just beneficial for the port but can also attract other global shipping companies, creating opportunities to develop Kerala’s smaller ports such as Kollam, Azheekal, Kozhikode, Ponnani and Alappuzha. As MSC expands its business, Kerala’s maritime ecosystem and the country’s port sector stand to benefit.
Can Vizhinjam realistically attract shipping lines that have long depended on established transshipment hubs?
Yes. There is a precedent. When Singapore declined to provide exclusive facilities sought by Maersk, Malaysia seized the opportunity and developed the port of Tanjung Pelepas. Then Malaysian PM Mahathir Mohamad allowed Maersk to acquire a 30% stake in the port, prompting the company to shift its transshipment operations from Singapore. That move immediately brought nearly two million TEUs to Tanjung Pelepas, where around 90% of the cargo is transshipped. Today, it is among the world’s largest container ports.
Can MSC similarly make Vizhinjam a major South Asian transshipment hub?
It is possible. Colombo handled 8.4 million TEUs last year, with nearly 70% of its transshipment cargo originating from the Indian subcontinent. There is no reason for Indian cargo to continue being routed through Colombo once Vizhinjam has the required capacity. MSC, which operates some of the world’s largest container vessels, including MSC Arena that recently called at Vizhinjam, can redirect a significant share of this traffic. If the company chooses, cargo currently moving through Colombo—and even some volumes from Singapore and Tanjung Pelepas—could shift to Vizhinjam.
Will MSC get an exclusive terminal at Vizhinjam?
Unlikely. The additional berths being developed by Adani Ports will remain common-user facilities. Other shipping lines will also be able to use them. MSC may receive operational priority because of its investment, but it will not enjoy exclusive access. A similar model exists at Tanjung Pelepas, where Maersk owns a stake but vessels from all shipping lines continue to use the port without discrimination.
Critics argue that Kerala has invested far more than Adani but is getting a smaller return. How do you respond?
The Kerala government has invested around Rs 5,500 crore, while Adani has invested about Rs 2,500 crore. Ports are long-term infrastructure investments. Financial returns may appear modest initially, but the wider economic benefits are substantial. Although the state’s direct revenue has been limited so far, the port’s economic life extends well beyond a century. The larger gains will come through the ecosystem it creates.
Ports generate demand for logistics, transport, warehousing, cranes, tugs and other support services, creating jobs and attracting investment. They also boost land value and economic activity in the surrounding region. Those long-term spillover benefits are where the state stands to gain the most. Vizhinjam itself has transformed the surrounding region, significantly increasing its economic value. The real gains extend well beyond direct revenue from port operations.
Why has Vizhinjam suddenly become so attractive to global shipping companies?
Initially, the project attracted little interest. The tender had to be floated twice before the then chief minister persuaded Gautam Adani to take it up. Adani was willing to take the risk because of his financial strength and ability to absorb losses in the initial years. Today, the situation has changed for two reasons: Vizhinjam is just 10 nautical miles from the main international shipping route, compared with about 30 nautical miles for Colombo, and it has a natural draft of around 20 metres, eliminating the need for expensive dredging. These advantages make operating costs and port tariffs more competitive.
Sri Lanka’s 2022 crisis did not shift cargo from Colombo. Is it really easy to draw traffic away from an established hub?
A temporary disruption alone will not change long-established shipping patterns. But Vizhinjam is different. With modern infrastructure and a strategic location, the new port is well-placed to capture a growing share of that traffic. Vizhinjam is a modern port with efficient operations and no legacy bottlenecks.
Do you expect Colombo to lose its dominance?
Yes, gradually. Colombo handled about 8.4 million TEUs in 2025, only slightly ahead of Mundra and Jawaharlal Nehru Port (Navi Mumbai). As Indian transshipment capacity expands, Colombo’s dominance is likely to decline over the next few years.
Why is MSC investing so heavily in Vizhinjam?
MSC sees strong long-term returns. Vizhinjam generated about Rs 600 crore revenue and handled around two million TEUs in its first 18 months. Once capacity rises to 5.7 million TEUs, revenues could increase significantly. With lower operating costs than many of the 40 terminals run by MSC worldwide, the company expects Vizhinjam to be a highly profitable investment.
Will MSC’s presence affect bunkering, cruise or other port services?
No. The terminal will remain a common-user facility. All shipping lines will continue to access services such as bunkering, crew changes and other port operations. MSC’s investment does not prevent other vessels from using these facilities.
What advantage does an investor like MSC receive?
The benefit is operational preference, not exclusivity. As seen at Tanjung Pelepas, where Maersk is an investor, the company may receive priority at a berth during peak periods.
Why didn’t Adani seek Kerala government’s prior approval before announcing the stake sale?
The agreement between Adani and MSC is only a commercial arrangement, under which MSC will invest about Rs 13,000 crore for a 49% stake. Such a document is necessary before regulatory and government approvals can be sought. Adani Ports has already stated that it has applied to the Kerala government for approval.
So was there a procedural lapse?
At the most, it appears to be a procedural issue rather than a substantive violation. Negotiations for a deal of this scale take months, and once the agreement reached a formal stage, it was submitted to the government for approval.
If the Kerala government owns the Vizhinjam port, what does MSC’s 49% stake actually mean?
The port is owned by the government, but the terminal is operated by another company. The MSC is acquiring 49% stake in the company operating the terminal. The Kerala government has invested for creating basic infrastructure. The Adani Ports has invested for developing the facilities, so that they can start operations. Both investments are different.
How can a foreign agency invest and handle operations at Vizhinjam Port? Doesn’t it need security clearance from the Union government?
The Adani Ports is an Indian company and they have already secured security clearance from the government, for the share that they have given in Mundra Port. The home ministry has given the clearance for MSC to invest in Mundra.
If Adani sells more of its stake in future, could MSC take control?
At present, Adani retains a 51% stake and management control. Even otherwise, MSC’s global practice is to partner with local operators rather than manage terminals directly. Its focus is on its core shipping business, while terminal operations are typically left to the local partner.
Could the political controversy derail the MSC deal?
I don’t think so. Adani Ports has worked closely with successive Kerala governments since the Vizhinjam project began under Oommen Chandy. They probably did not expect the agreement to become politically contentious and assumed approvals would follow after signing. But, unfortunately in Kerala, you don’t need a very solid reason for people to raise their voice. The project itself survived years of protests, construction delays and supply issues. Today, opposition has largely subsided, and local communities are even being trained for port-related jobs.
Doesn’t the controversy send a negative message to investors?
I see the opposite message. If the world’s largest container shipping company is willing to invest about Rs 13,000 crore in Vizhinjam, it reflects confidence in Kerala’s investment climate. That is likely to encourage, rather than discourage, future investors.
There’s talk that Kerala will lose Vizhinjam’s spin-off benefits to Tamil Nadu...
Some benefits may naturally extend to Tamil Nadu because large parcels of land for logistics parks are easier to find there. But ports do not function within state boundaries alone. A logistics corridor linked to Vizhinjam can benefit both states while strengthening the port’s overall competitiveness. Benefits go beyond borders and there’s nothing wrong with that.
What will MSC’s presence mean for Vizhinjam?
A global player like MSC will bring cargo, technology and international best practices. Its presence will accelerate capacity expansion, improve operational efficiency and make Vizhinjam globally competitive. While India has made significant progress, there is still considerable scope to strengthen public-private partnerships in port development.
Moving to Kochi, what is holding back Vallarpadam container terminal’s growth?
The biggest challenge is high logistics costs, not infrastructure. Despite having a dedicated rail link, exporters prefer road transport because freight charges are uncompetitive
What should be done to revive the terminal?
DP World and the Cochin Port authorities should work with exporters, importers, Railways and road transport operators to reduce logistics costs, even if it means sharing a part of the burden through incentives. Despite operating since 2011, the terminal handled only about 8.5 lakh TEUs last year and is yet to cross the one-million-TEU mark, highlighting the need for a stronger commercial strategy.
Why do some Kerala exporters prefer JNPT over Vallarpadam?
Primarily because they get better ocean freight rates. Cost often outweighs the advantage of using a nearby port.
Is Vallarpadam lagging in operational efficiency?
No. Its turnaround time is comparable to other major ports. In fact, while transshipment volumes have declined after Vizhinjam’s emergence, Vallarpadam’s gateway cargo has increased, showing stronger imports and exports.
What strategy should Vallarpadam adopt?
It should focus on gateway cargo instead of competing with Vizhinjam for transshipment. Better coordination with exporters and lower logistics costs can help it expand this segment.
Do Vizhinjam and Vallarpadam compete, or can they complement each other?
They can complement each other. Vizhinjam is ideally suited to be a transshipment hub, while Vallarpadam’s strength lies in gateway cargo linked to its hinterland. Instead of competing for the same business, each port should focus on its natural advantage.
Can they work together in practice?
Yes. If Vizhinjam faces berth congestion, some vessels or cargo can be diverted to Vallarpadam. A similar model exists in Malaysia, where the Klang port functions mainly as a gateway port while the port of Tanjung Pelepas specialises in transshipment. Both rank among the world’s busiest container ports.
What are the biggest challenges facing Vallarpadam?
The port needs its draft to be increased from 14.5 metres to 16 metres to handle larger vessels. However, the project would cost around Rs 800 crore, while annual dredging already costs Rs 120-130 crore. Deeper channels would push maintenance costs even higher.
Should the Centre bear part of this cost?
Yes. The Centre expects ports to fund development largely on their own, but many countries treat approach-channel dredging as a national responsibility. Historically, India followed a similar model by heavily subsidising dredging at Kolkata Port.
What policy change would help Indian ports?
The Union government should subsidise outer-channel dredging at all major ports. That would reduce the financial burden on port authorities and accelerate the development of India’s maritime infrastructure.
India has a vast coastline and occupies a strategic geographic location. Yet, it has historically lagged behind global leaders in port infrastructure? Has the government not paid enough attention?
For decades, India did not view ports strategically. Port-led development gained momentum only over the last two decades, drawing from Gujarat’s successful model, which handles nearly 65-70% of the country’s non-major port cargo. The government has set an ambitious target of establishing the world’s third-largest port infrastructure by 2047. There is still a long way to go.
Chief Minister V D Satheesan has spoken about developing Kerala into a port-driven economy. Is that vision feasible?
The idea is not limited to a single port. Kerala has 18 ports along a 560-km coastline, each with distinct strengths. Alappuzha has tourism potential, while Kollam can support cashew exports and other industries. Developing these ports will attract private investment, create sustainable jobs and strengthen the state’s economy. Kerala has traditionally been wary of private investment, but if projects are structured well, both investors and the state stand to benefit. It is encouraging that the current administration is taking this potential seriously.
You played a role in introducing private participation at JNPT. How did that happen?
In 1996, when I was acting chairman of the Jawaharlal Nehru Port Trust, the then Union ports minister sought my opinion on whether the second container terminal should remain in the public sector or be developed by a private operator. I recommended private participation, citing successful models in Europe. My argument was that competition would improve efficiency, just as it had in the airline sector. The minister accepted the recommendation, and the terminal was awarded to a private operator. That decision paved the way for private participation across India’s major ports.
Are you saying partnering with global shipping lines is the way to go for Indian ports?
Yes. That is the way forward. When I was at Jawaharlal Nehru Port Trust, there was only one container terminal. Today there are five, most of them developed by the private sector. As India becomes a larger economy, global shipping lines will be more willing to invest because they know cargo volumes will continue to grow.
Who deserves credit for Vizhinjam becoming a reality?
The greatest credit should go to former chief minister Oommen Chandy. When there were no bidders, he took the political risk of persuading Gautam Adani to invest. At the time, he even faced corruption allegations over the decision. He asked me to write an article explaining why developing a transshipment port was a risky venture and why attracting an investor itself was difficult. Had he not taken that initiative, I believe Vizhinjam would still have remained on paper.
Didn’t later governments also contribute?
Yes. Because they knew that things are taking shape in a different way. I am free from all political affiliations. But when the port was inaugurated no mention was made of the man who took the initiative to develop it.
But his name was mentioned?
Yes. Karan Adani mentioned his name. That is our politics. When you find that someone is on the opposite side of the political spectrum, we look at him as an enemy. But if he has done something for the country and for state, should we not at least remember him with gratitude? That is the unfortunate thing that I find in Kerala.
How did you get into ports management?
I was born and brought up in Njarakkal in Vypeen. At that time, bus services were not there. So we used to come by boat. At that time, the boat used to pass by Mattancherry, near Ernakulam wharf. I used to see ships lined up there. I genuinely felt that if I get an opportunity to work in a port, I would be able to interact with people from different countries. After my education, I found an advertisement and I applied. At the age of 25, I became an officer with Cochin Port Trust.
What happens after Vizhinjam’s 40-year concession period ends?
By then, India’s port sector will be far more advanced. The government will continue to own and regulate the infrastructure, while the private sector is likely to play the leading role in port development and operations.