The container terminal operating and investing arm of Mediterranean Shipping Company (MSC) is acquiring a 49% stake in the $2.85bn (€2.5bn) Vizhinjam port in India from Adani Ports and Special Economic Zone (APSEZ).
MSC-backed Terminal Investment Limited (TiL), which counts BlackRock’s Global Infrastructure Partners and Singapore’s GIC among its shareholders, has agreed to invest $1.39bn for its stake in Adani Vizhinjam Port Private Limited (AVPPL), with APSEZ retaining the majority stake.
The Vizhinjam port currently has a capacity of 1.6m 21ft equivalent units (TEUs) and is undergoing an expansion that will increase its capacity 3.5 times to 5.7m TEUs.
The latest transaction represents the third major partnership APSEZ and MSC, building on joint ventures at Mundra Container Terminal No 3 and Ennore ports.
The deal also represents the largest single foreign private investment in the history of Indian port infrastructure.
Ashwani Gupta, director and CEO, APSEZ, 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 2m TEUs within 18 months of operations.
“I am delighted to expand APSEZ’s long-standing partnership with MSC to Vizhinjam, as we prepare for the port’s next leg of journey. I am confident that our association will deliver enhanced supply chain efficiencies at a global scale and improve India’s access to key global mature and developing markets.”
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