India maritime logistics: Chennai faces rail challenges as Vizhinjam expands

India's maritime sector is seeing divergent trends across major ports. At Chennai Port, shippers continue to rely heavily on road transport despite improvements in intermodal rail connections and tariff incentives. Data from the first four fiscal months through July shows rail volumes fell approximately 19 percent year-over-year to 27,254 TEUs, while truckloads accounted for over 90 percent of the port's total container volume.

To remain competitive against regional rivals, Chennai authorities have introduced new rail services and RFID technology for gate operations. Industry consultants suggest the port must focus on enhancing cargo handling productivity and efficiency to address drayage bottlenecks and low yard productivity.

In contrast, the Vizhinjam International Seaport is positioned as a strategic asset to reduce India's dependence on foreign transhipment hubs like Colombo and Singapore. Operated by Adani Ports and Special Economic Zone, the port is undergoing a Phase-II expansion scheduled for completion by December 2028. Once fully operational, capacity is expected to rise from its current 1.6 million TEUs to approximately 5.7 million TEUs, potentially reducing export transit times by one day.