APSEZ, MSC sign $2.85bn Vizhinjam port investment agreement

Adani Ports and Special Economic Zone (APSEZ) and Mediterranean Shipping Company (MSC) Group have signed a definitive agreement under which MSC's terminal operating arm, Terminal Investment (TiL), will acquire a 49% stake in Adani Vizhinjam Port (AVPPL), the concessionaire for Vizhinjam port. The total transaction values the port at $2.85 billion, with TiL investing  $1.397 billion for its 49% share. The transaction is subject to customary regulatory approvals.

The agreement marks the third major collaboration between APSEZ and MSC after their joint ventures at Mundra Container Terminal No. 3 and Ennore. According to the companies, the partnership is expected to improve volume visibility at Vizhinjam port, accelerate its ramp-up through additional cargo volumes and strengthen its position as a transshipment hub.

Ashwani Gupta, Whole-time Director and CEO of APSEZ, said Vizhinjam port has become the first Indian port to handle more than 2 million TEUs within 18 months of operations. He said expanding the long-standing partnership with MSC at Vizhinjam would improve supply chain efficiencies and strengthen India's connectivity with key global markets.

The collaboration is expected to provide APSEZ with additional cargo volumes, increase Bangladesh cargo currently routed through competing Southeast Asian transshipment hubs, strengthen its presence on East Africa trade routes and increase relay cargo volumes.

TiL, part of the MSC Group, is one of the world's largest container terminal operators. The company manages a portfolio of more than 100 container terminals across five continents and handles over 70 million TEUs annually.

Commissioned in December 2024, Vizhinjam is India's first deep-draft mega transshipment port with a current capacity of 1.6 million TEUs. Expansion work is underway to increase the port's capacity by 3.5 times to 5.7 million TEUs by December 2028.

Located around 10 nautical miles from the East-West shipping route linking Europe, the Persian Gulf and the Far East, the port has a natural draft of 18-20 metres, a 2.9-kilometre breakwater, an 800-metre berth, eight quay cranes and 24 fully automated yard cranes. It is also India's first automated port, equipped with advanced container handling systems, a digital IT platform and an AI-enabled indigenous Vessel Traffic Management System.

During FY26, Vizhinjam port handled 1.3 million TEUs. In its first year of operations, it handled 1.3 million TEUs and 615 vessels, becoming the fastest Indian port to cross the one million TEU milestone. Within 18 months, it crossed 2 million TEUs and handled more than 950 vessels. In June 2026, the port received its 1,000th vessel. It has also handled more than 70 ultra large container vessels, the highest among Indian ports, along with 283 vessels longer than 300 metres and 98 vessels requiring drafts greater than 16 metres.