MSC invests $1.4 billion in 49% stake in Vizhinjam port from Adani

Mediterranean Shipping Company (MSC) is strengthening its position in India's rapidly growing container market by agreeing to acquire a 49% stake in the Vizhinjam terminal owned by Adani Ports, in a deal valued at $1.4 billion.

The deal values the Kerala port at approximately $2.85 billion and is considered the largest foreign private investment in Indian port infrastructure.

Adani Ports & Special Economic Zone (APSEZ) will retain a controlling stake of 51%, continue to manage the board of directors, and consolidate Adani Vizhinjam Port Private Limited as a subsidiary. The deal is subject to regulatory approval.

The investment will be made in two phases. TiL will initially pay $539 million for its stake and then invest an additional $858 million for terminal expansion, which is expected to be completed by the end of 2028.

The Vizhinjam port, which is set to be operational by December 2024, is India's first specialized deep-water transshipment port and has quickly established itself as one of the country's fastest-growing container hubs. The terminal currently has an annual capacity of 1.6 million TEU, which will increase to 5.7 million TEU upon completion of the expansion work.

This deal strengthens the already close relationship between APSEZ and MSC. It is the third joint venture between the companies following collaborations at the Mundra and Ennore container terminals.