Adani Ports and Special Economic Zone Ltd (APSEZ) 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.
The strategic collaboration represents the single largest foreign private investment in the Indian port infrastructure and cements Vizhinjam’s emergence as a dominant transshipment gateway in the Indian Ocean region.
The transaction is subject to customary approvals, including regulatory ones. TiL will invest USD 1.397 billion, equivalent to its proportionate 49 per cent share of USD 2.85 billion.
Ashwani Gupta, Director and CEO, APSEZ, saidVizhinjam port has emerged as a premier transshipment hub and has 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 operation.
“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,” he said.
This marks the 3 major collaboration between APSEZ and MSC, following successful joint ventures at ports in Mundra and Ennore.
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 volumes.
It will have higher share of Bangladesh cargo, largely dependent on competing Southeast Asian transshipment hubs. In addition, the partnership will strengthen presence on East Africa trade routes and elevate relay cargo volumes.
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.
