Maritime giant MSC’s unit to buy 49% stake in Thiruvananthapuram’s Adani Vizhinjam Port Pvt Ltd

Mediterranean Shipping Company (MSC) Group's terminal arm, Terminal Investment Limited (TiL), will acquire a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL), the concessionaire for the Vizhinjam International Seaport.

TiL will invest $1.397 billion, representing its proportionate share of the project's enterprise value of $2.85 billion. Adani Ports and Special Economic Zone (APSEZ) will retain the remaining 51 per cent stake and majority control, with AVPPL continuing as its subsidiary.

The deal marks the third major collaboration between APSEZ and MSC after their successful joint ventures at Mundra's Container Terminal No. 3 and Ennore. It is also the single largest foreign private investment in an Indian port, reinforcing Vizhinjam's emergence as a major transhipment hub in the Indian Ocean.

Vizhinjam, which currently has a capacity of 1.6 million TEUs, is undergoing rapid expansion that will raise capacity 3.5 times to 5.7 million TEUs by 2028.

The port has also witnessed rapid growth since commencing operations. In its first year, it handled 1.3 million TEUs and 615 vessels, becoming the fastest Indian port to cross the one-million TEU mark. Within 18 months, it surpassed two million TEUs and 950 vessels, setting another national record. Earlier this month, Vizhinjam welcomed its 1,000th vessel. The port has also handled more than 70 Ultra Large Container Vessels (ULCVs)—the highest among Indian ports—along with 283 vessels exceeding 300 metres in length and 98 vessels requiring drafts greater than 16 metres.

Currently, almost 99 per cent of the vessels calling at Vizhinjam belong to MSC. Of the 1,005 ships handled so far, only eight have been operated by other shipping lines. According to sources, the port has been unable to accommodate additional carriers because MSC has booked almost all available berthing slots. The company reserves slots three to four months in advance for the following quarter, leaving little room for competitors.

Since tensions escalated around the Strait of Hormuz, several global shipping lines—including Hapag-Lloyd, Evergreen Marine and Maersk—have reportedly sought berthing slots at Vizhinjam. Those requests, however, could not be accommodated because of existing commitments to MSC.

Industry sources, however, expect TiL's investment to accelerate cargo growth beyond current projections. The partnership is expected to improve volume visibility, attract additional cargo from a wider range of shipping lines and increase Bangladesh-bound transhipment traffic, much of which is currently routed through competing Southeast Asian hubs.

The investment is also expected to strengthen Vizhinjam's position as a gateway for cargo moving between Asia and East Africa. Located just about 10 nautical miles from the main East-West shipping corridor linking Europe, the Persian Gulf and the Far East, the port is strategically positioned as a transhipment hub. As India’s first automated port, Vizhinjam boasts cutting-edge container handling systems, an IT platform, and an AI-enabled indigenous Vessel Traffic Management System (VTMS).

With MSC's extensive global network, a larger share of cargo is expected to be routed through Vizhinjam, reducing dependence on competing hubs while improving connectivity with East African ports. Higher relay cargo volumes are expected to boost terminal revenues, improve vessel utilisation and further establish Vizhinjam as a key logistics hub in the Indian Ocean.

"Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace, becoming the first Indian port to cross two million TEUs within 18 months of operations," said Ashwani Gupta, Whole-time Director and CEO of APSEZ. "I am delighted to expand APSEZ's long-standing partnership with MSC to Vizhinjam as we prepare for the port's next phase of growth. I am confident this association will enhance global supply-chain efficiencies and improve India's access to key mature and emerging markets."

Despite MSC's significant equity stake and operational role through TiL, the agreement does not grant the company exclusive rights over the port. Other shipping lines will continue to have access to Vizhinjam, subject to slot availability and the standard tariff structure.

While the investment is expected to ease funding requirements for the expansion, sources said it is unlikely to advance the overall 2028 completion target. However, the phased commissioning of new berths could deliver additional capacity well before then. Under the revised expansion plan, berth length will eventually increase from 800 metres to 2,000 metres. The first additional 400-metre berth, now under construction, is expected to be commissioned during the current financial year, taking the total berth length to 1,200 metres. Another 400-metre berth will follow, allowing an additional 800 metres of capacity to become operational ahead of the project's final completion in 2028.