Adani Ports and Special Economic Zone Ltd (APSEZ), led by Gautam Adani, is in discussions with Mediterranean Shipping Company (MSC), the world's largest container carrier, for the sale of a significant stake, potentially up to 49%, in its Vizhinjam International Transhipment Port in Kerala, India. The proposed deal aims to transform MSC, already the port's primary customer, into a shareholder, aligning with APSEZ's strategy of forming joint ventures with global shipping lines to boost cargo volumes. Since its commercial launch on December 3, 2024, Vizhinjam Port has rapidly handled over two million twenty-foot equivalent units (TEUs), largely attributed to MSC's operations, making it India's fastest port to achieve this milestone.
APSEZ is planning a major expansion of Vizhinjam Port, investing approximately ₹16,059 crore (about $1.753 billion) to increase its annual handling capacity by 4.1 million TEUs. This expansion, slated for completion by 2028, will raise the port's total nominal capacity from one million TEUs to 5.1 million TEUs, with an operational capability to reach 5.7 million TEUs annually through automation and enhanced efficiency. The project includes extending the container berth by 1,200 meters to a continuous 2,000 meters and adding 12 new ship-to-shore cranes and 27 new yard cranes.
The potential stake sale and expansion are crucial for India's trade ambitions, aiming to reduce the country's reliance on foreign transshipment hubs like Colombo and Singapore. Vizhinjam's strategic location and deep draft, capable of accommodating next-generation container vessels of up to 28,000 TEUs, position it as a major regional transshipment hub for the Indian subcontinent, Africa, and the Middle East. The port's ability to handle large vessels and improve operational efficiency is expected to enhance India's global supply chain competitiveness and maritime connectivity. The deal also aligns with the concession agreement between APSEZ and the Kerala government, which permits APSEZ to dilute its stake to 26% or lower after the first year of commercial operations.
