MSC, one of the world’s largest shipping companies, has joined hands with Adani for the development of Vizhinjam port. European shipping giant Mediterranean Shipping Company (MSC) owns 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) under Adani Ports, a subsidiary of Adani Group.
Adani Ports said in a filing to the stock exchanges that MSC will acquire 49% stake in AVPPL at $139.7 crore (approximately Rs 13,270 crore), valuing AVPPL at $285 crore (approximately Rs 27,000 crore). This is the largest foreign investment received by the Indian port sector.
The acquisition is by the port giant
Terminal Investment Limited (TIL), MSC’s port operating arm, is making the investment. Mundi Limited, a subsidiary of TIL, will acquire the stake. At present, the second phase of development work is in progress at Vizhinjam port. The current container handling capacity is 16 lakh twenty foot equivalent units (TEU). With the completion of development work in December 2028, this will increase by 3.5 times to 57 lakh TEU.
It is believed that more containers will reach Vizhinjam and better background development will be possible through cooperation with MSC. This is the third port collaboration between Adani and MSC in India. At present there is cooperation in third terminal at Mundra Port in Gujarat and Ennore in Tamil Nadu.
Break the record and move on
Vizhinjam is India’s first natural deep mega transshipment port. Being just 10 nautical miles away from international shipping lanes is also a big plus. A natural depth of 18-20 meters is suitable to accommodate any large ship in the world.
It also features 800m berth and state-of-the-art crane units. By 2025-26, Vizhinjam had handled 13 lakh TEU containers. 615 ships arrived at the port during this period. It is also the fastest in India to achieve 10 lakh TEU. Vizhinjam has handled 20 lakh TEU containers and 950 vessels within 18 months of its operations.
The 1000th ship arrived in Vizhinjam this month. Vizhinjam has already received 70 Ultra Large Container Vessels (ULCVs). This is a rare achievement. Of the ships that have arrived so far, 283 are over 300 meters long. 98 required a depth of more than 16 meters. The fact that it was available was also attractive.
Bangladesh goods will come to Kerala
Collaboration with MSC will help bring more containers to Vizhinjam. Currently, the cargo passing through the ports of South East Asian countries will now come to Vizhinja. In particular, goods from Bangladesh can be attracted to Vizhinja in a big way. Ashwani Gupta, CEO and Whole-time Director, Adani Ports, said the collaboration is expected to help increase connectivity from Vizhinjam to East Africa and find regular cargoes.
Big win for Kerala
TIL under MSC is one of the largest shipping operators in the world. TIL currently manages over 100 container terminals across 5 continents. TIL handles an average of 7 crore containers per year. More containers coming to Vizhinjam will give Kerala a big boost economically. The state government can earn huge revenue through taxes and dividends. Adequate infrastructure will also materialize which will boost freight. Local employment opportunities will also increase. This will also benefit the economy of Kerala.
