Vizhinjam vs Colombo or Vizhinjam + Colombo? India’s Transshipment Bet Is Being Stress-Tested Right Now

India has a long history of dependence on overseas hubs for transshipment, with Colombo playing a major role in handling India-linked container traffic. Even as India expands its domestic port capacity, Colombo continues to hold a significant position in the region’s transshipment network.

According to a Daily FT report, the Port of Colombo handled 3.70 million TEUs in the first five months of 2026, up 13.5% year-on-year, while transshipment accounted for around 84.5% of its container volumes.

However, India’s transshipment landscape is changing with the arrival of Vizhinjam International Seaport in Kerala. Commissioned in December 2024, the deep-water port sits just around 10 nautical miles from the main East–West shipping route and has a natural draft of 18–20 meters. This strategic location and natural deep-water advantage give Vizhinjam a distinct edge, allowing India to accommodate some of the world’s largest container vessels closer to home.

At first glance, Colombo and Vizhinjam may seem like natural competitors. But their early growth tells a different story. Vizhinjam is gaining ground, while Colombo continues to expand. Rather than a winner-takes-all contest, the two ports could emerge as complementary hubs serving a growing South Asian cargo market.

In this blog, we will explore what each port brings to the table, why Vizhinjam + Colombo may prove more realistic than Vizhinjam vs Colombo, and what that could mean for freight forwarders. Read on to know more.

Colombo: An Established Transshipment Powerhouse

Colombo’s strength goes beyond its strategic location. Decades of transshipment activity have built a mature ecosystem of mainline services, feeder connections and shipping-line relationships, making it a key hub for India and the wider South Asian market.

Its recent performance reinforces that position.

Along with its strong overall performance of 3.70 million TEUs, Colombo also recorded growth in its core transshipment and vessel activity. Statistics show that transshipment volumes grew 14% during January–May 2026, while vessel calls increased 4.7% to 1,726, further reflecting the port’s continued momentum.

Adding to this momentum, Colombo West International Terminal (CWIT) crossed one million TEUs in less than a year of operations, further strengthening the port’s transshipment capacity, as confirmed by a recent NDTV report.

Vizhinjam: India’s New Deep-Water Transshipment Hub

Vizhinjam stands out for its deep-water capability and proximity to the main East–West shipping route. Located roughly 10 nautical miles from the route, it requires minimal deviation for vessels travelling between Europe, the Gulf and Asia. Its 18–20-meter natural draft also enables it to accommodate Ultra Large Container Vessels (ULCVs), strengthening India’s ability to handle transshipment traffic closer to home.

The port has scaled quickly since operations began. An industry report confirms that, in FY2025–26, Vizhinjam handled 1.3 million TEUs across 615 vessels, becoming the fastest Indian port to cross the one-million-TEU mark. By June 2026, it had welcomed its 1,000th vessel, while more than 70 ULCVs had called at the port.

However, inland connectivity remains a key area under development. According to a recent Maritime Gateway report, a 10.7-km rail link connecting the port to Balaramapuram railway station, including a 9.43-km underground tunnel, is targeted for completion by December 2028. This connection will be important in strengthening Vizhinjam’s access to Indian origin and destination cargo.

Vizhinjam and Colombo: Complementing, Not Competing

The growth of Vizhinjam does not necessarily mean less business for Colombo. India’s trade volumes are expanding, creating more cargo for the region to handle. This means Vizhinjam can take a larger share of India’s transshipment traffic without necessarily taking that volume directly away from Colombo.

Industry experts see a similar possibility. Speaking at the Sri Lanka German Business Forum 2026, Hapag-Lloyd’s Regional Managing Director Sanjay Singh Kushwaha said, “The winner will not take it all,” indicating that growing Indian trade could create enough demand for both ports.

This is where the “Vizhinjam + Colombo” case becomes stronger. Rather than one port replacing the other, growing trade could allow both to handle larger volumes while serving different parts of the regional shipping network.

What Does This Mean for Freight Forwarders?

For freight forwarders, the development of Vizhinjam alongside Colombo could bring more flexibility to India-linked cargo movement. Colombo continues to offer an established transshipment and feeder network, while Vizhinjam adds another deep-water hub with growing mainline connectivity. Stronger carrier participation is also emerging, with MSC’s terminal investment arm agreeing to acquire a 49% stake in Vizhinjam in June 2026.

More importantly, Vizhinjam is now expanding beyond transshipment. According to a Business Standard report, EXIM operations will begin on August 18, 2026, enabling the direct movement of Indian import and export cargo through the port. Initially, operations will focus on qualifying full container loads (FCLs), as a dedicated Container Freight Station (CFS) is not yet operational.

Conclusion

Vizhinjam is giving India a stronger foothold in transshipment, but Colombo’s continued growth shows that this does not have to be a winner-takes-all story. With regional trade continuing to expand, there will be enough distinct demand for both hubs to grow.

The real test will depend on how shipping lines use the two ports as capacity and connectivity evolve. For now, the emerging picture looks less like Vizhinjam vs Colombo – and more like Vizhinjam + Colombo.

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