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The Kerala government has given administrative approval for developing a customs warehouse at Azhikkal Port in Kannur, signalling renewed momentum for the port's expansion in the north Malabar region. The river-mouth port, located at the confluence of the Valapattanam and Mattool rivers and opening into the Lakshadweep Sea, has long served local industries such as timber, plywood, cashew, coir and ceramics. Past proposals had envisaged a full-scale port upgrade costing around INR 1,750 crore, implemented in modules. With the latest clearance, the warehouse development moves ahead, and the project re-enters focus after years of delay.
The Kerala state administration recently granted administrative approval for building a customs warehouse at Azhikkal Port in Kannur. The clearance was confirmed by the Chief Minister's office. This warehouse is intended to strengthen cargo handling at the minor riverside port and improve logistics for its hinterland industries. Advertisement
Azhikkal Port lies at the confluence of the Valapattanam and Mattool rivers and opens into the Lakshadweep Sea. It currently handles exports and shipments of cashew, coir, ceramics, fertilisers, timber and textiles in addition to the local fishing trade and wood-based industries. Previously, a detailed project report (DPR) prepared around 2016 proposed that the port be developed in phases with an overall investment of about INR 1,200 crore (later estimates up to INR 1,750 crore) including container berths, an oil jetty, ship-repair yard and dry-dock. However, progress remained slow and most modules did not materialise.
The new approval for the customs warehouse is viewed as a practical initial step toward the broader port upgrade. Given the port's shallow draft of approximately four metres and its relatively small scale of operations, this warehouse proposal is more modest than earlier expansive plans, but it aligns with the current industrial needs of the region. The facility is expected to boost logistics infrastructure, facilitate better storage and handling of goods, and potentially attract more freight traffic, thereby easing pressure on road transport.
Nevertheless, various challenges persist. The more ambitious components of the earlier master-plan such as the dry-dock, large container berths, oil jetty and deep-water access have not yet advanced beyond the conceptual stage. The warehouse approval is positive, but without timely follow-through and connectivity improvements, the full potential of the port?led regional growth may remain unfulfilled.
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