MSC’s Terminal Arm TiL To Invest in 49% Share in Adani Vizhinjam Port; Total Deal Value USD 2.85 Bn

New Delhi: Adani Ports and Special Economic Zone Limited (APSEZ) and Mediterranean Shipping Company (MSC) Group’s terminal arm, Terminal Investment Limited (TiL), on Tuesday announced a definitive agreement under which TiL will invest for a 49 per cent interest in Adani Vizhinjam Port Private Limited (AVPPL) in a deal valued at USD 2.85 billion.

Under the agreement, TiL will invest USD 1.397 billion, equivalent to its proportionate 49 per cent share of the USD 2.85 billion valuation. The transaction is subject to customary approvals, including regulatory clearances.

“APSEZ, India’s largest and one of the world’s fastest growing integrated transport operators, and MSC Group, the world’s largest transport and logistics conglomerate, have entered into a definitive agreement under which MSC Group, via its container terminal operating and investing arm, TiL, will invest for 49 per cent interest in AVPPL, the concessionaire for Vizhinjam port,” APSEZ said in a statement.

The company said the strategic collaboration represents the single largest foreign private investment in Indian port infrastructure and cements Vizhinjam’s emergence as a dominant transshipment gateway in the Indian Ocean region.

APSEZ Whole-time Director and CEO Ashwani Gupta said, “Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace, becoming the first Indian port to earn the unique distinction of crossing 2 million TEUs within 18 months of operations.”

He added, “TiL is one of the world’s largest container terminal operators and part of the MSC Group comprising a portfolio of more than 100 container terminals across five continents and a throughput of more than 70 million TEUs per annum.”

According to the statement, the strategic collaboration between APSEZ and MSC Group will deliver significant advantages for APSEZ, including enhanced volume visibility and accelerated ramp-up ahead of plan, driven by additional cargo volume and a higher share of Bangladesh cargo, which is currently largely dependent on competing Southeast Asian transshipment hubs.

Commissioned in December 2024, Vizhinjam port is India’s first deep-draft mega transshipment port with a capacity of 1.6 million Twenty-foot Equivalent Units (TEUs). The port is undergoing expansion that will increase its capacity 3.5 times to 5.7 million TEUs by December 2028.

Strategically located around 10 nautical miles from the East-West shipping route connecting Europe, the Persian Gulf and the Far East, Vizhinjam is expected to strengthen India’s position as a major transshipment hub in the region.

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