APSEZ and MSC Group deepen long-term partnership; MSC’s terminal arm, TiL, to invest in 49% share in Vizhinjam port in total deal value of USD 2.85bn

APSEZ and MSC TiL have agreed to a USD 2.85 billion deal where TiL will acquire a 49% stake in Adani Vizhinjam Port Private Limited. The investment, including USD 1.397 billion from TiL, aims to expand Vizhinjam’s capacity to 5.7 million TEUs by 2028 and bolster regional transshipment activity. The move follows two prior collaborations between APSEZ and MSC Group.

Adani Ports and Special Economic Zone Ltd (APSEZ) and Mediterranean Shipping Company (MSC) Group have announced a strategic partnership under which MSC's terminal operating arm, Terminal Investment Limited (TiL), will acquire a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) in a transaction valued at USD 2.85 billion.

As part of the agreement, TiL will invest USD 1.397 billion, representing its proportional share in the project. The transaction is subject to customary regulatory approvals. According to the companies, the deal is expected to strengthen Vizhinjam Port's position as a key transshipment hub in the Indian Ocean while accelerating cargo growth and operational expansion. The investment marks the third major collaboration between APSEZ and MSC Group, following their successful partnerships at Mundra Container Terminal No. 3 and Ennore Port.

Commissioned in December 2024, Vizhinjam is India's first deep-draft mega transshipment port with an existing capacity of 1.6 million twenty-foot equivalent units (TEUs). The port is currently undergoing expansion that will increase its capacity by 3.5 times to 5.7 million TEUs by December 2028.

Located about 10 nautical miles from the busy East-West international shipping route connecting Europe, the Persian Gulf and the Far East, the port is designed to attract large container vessels. It features a natural draft of 18-20 metres, an 800-metre berth, a 2.9-km breakwater, automated cargo handling systems and an AI-enabled Vessel Traffic Management System (VTMS).

Port Crosses Key Operational Milestones

According to APSEZ, Vizhinjam handled 1.3 million TEUs during FY26 and became the fastest Indian port to cross the one-million TEU mark. Within 18 months of operations, the port surpassed 2 million TEUs and handled over 950 vessels, while welcoming its 1,000th vessel in June 2026.

The company said the port has also handled more than 70 Ultra Large Container Vessels (ULCVs), the highest among Indian ports, along with 283 vessels exceeding 300 metres in length.

Companies Expect Higher Cargo Volumes

APSEZ said the partnership with MSC is expected to improve cargo visibility, increase relay cargo volumes, strengthen connectivity with East African trade routes and attract a larger share of Bangladesh-bound cargo that currently depends on Southeast Asian transshipment hubs.

Commenting on the development, Ashwani Gupta, Whole-time Director and CEO of APSEZ, said the agreement builds on the long-standing relationship between the two companies.

"Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace, becoming the first Indian port to cross 2 million 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 phase of growth," Gupta said.

Strategic Investment in Indian Port Infrastructure

The companies described the agreement as one of the largest foreign private investments in India's port infrastructure. TiL, a subsidiary of MSC Group, operates a global portfolio of more than 100 container terminals across five continents with an annual throughput exceeding 70 million TEUs.

APSEZ currently operates 15 ports and terminals across India and four international ports. The company has a cargo handling capacity of 653 million tonnes per annum and aims to achieve 1 billion tonnes of throughput by 2030.