Historic milestone for Kerala: MSC to invest ₹13,000 Crore for 49% stake in Adani’s Vizhinjam Port

KOCHI: Switzerland-based Mediterranean Shipping Company (MSC), one of the world's largest shipping lines, is set to invest ₹13,000 crore ($1.397 billion) in Adani Vizhinjam Port Limited. The transaction, which involves the acquisition of a 49 percent stake in the port entity, marks the largest-ever foreign investment in the history of Kerala and stands as the country's largest foreign private investment in the port infrastructure sector.

Strategic partnership and scale expansion

The investment will be executed through Terminal Investment Limited (TIL), the container terminal operating arm of the MSC Group, which is acquiring the 49 percent stake in Adani Vizhinjam Port Private Limited (AVPPL). The investment calculation values the total enterprise of AVPPL at ₹27,000 crore ($2.85 billion). The finalisation of the deal remains subject to necessary statutory approvals.

This capital infusion is projected to significantly scale up operations at the deep-water seaport. The port’s cargo handling capacity is slated to expand 3.5 times, rising from its current capacity of 1.6 million Twenty-foot Equivalent Units (TEUs) to 5.7 million TEUs. In a press release, Adani Ports and Special Economic Zone Limited (APSEZ) stated that the new partnership will ensure stability and an increase in cargo movement at Vizhinjam. The collaboration builds on existing investment cooperation between the two companies at Mundra Port in Gujarat and Ennore Port in Tamil Nadu.

Ashwani Gupta, Director and Chief Executive Officer of APSEZ, stated that the company is pleased to extend its partnership with MSC to Vizhinjam, noting that it is India’s first port to handle 2 million TEUs within 18 months of commencing operations.

Shifting dynamics in Indian Ocean trade

Through this major investment, Vizhinjam is projected to become a premier transshipment hub in the Indian Ocean region, reducing the prominence of Colombo. This shift comes as Vizhinjam's influence expands across trade routes stretching from Bangladesh to Africa. Notably, the majority of the cargo movement conducted by MSC from Bangladesh will now be routed through Vizhinjam.

The MSC Group, founded in 1970 by Italian businessman Gianluigi Aponte and headquartered in Geneva, Switzerland, operates the world's largest container shipping fleet with more than 900 vessels. Its terminal arm, TIL, is among the world's largest container terminal operators, managing over 100 container terminals across five continents with an annual cargo handling capacity exceeding 70 million TEUs.

Expected gains for Kerala

The historic deal is projected to bring significant economic advantages to Kerala, including the creation of employment opportunities across the logistics, warehousing, and export-import sectors. Plans are also envisioned to establish industrial corridors and logistics hubs centred around Thiruvananthapuram.

Moving forward, the transaction provides additional capital dedicated to port development and allied infrastructure. An overall economic revival is anticipated across the region as the services of international shipping companies continue to scale up at the transshipment hub.