Adani Ports and Special Economic Zone Ltd (APSEZ) confirmed that MSC Group's container terminal operating and investing arm, Terminal Investment Limited (TiL), will invest $1.397 billion for a 49% stake in Adani Vizhinjam Port Private Limited. This deal, valued at $2.85 billion in total, represents the largest foreign private investment in Indian port infrastructure and is expected to solidify Vizhinjam's position as a major transshipment hub in the Indian Ocean region. The transaction is contingent on various regulatory approvals, though specific timelines for these approvals were not disclosed.
Vizhinjam Port, which commenced commercial operations in December 2024, has rapidly distinguished itself. Within its first year, it handled 1.3 million TEUs (twenty-foot equivalent units) and 615 vessels, making it the fastest Indian port to reach the one million TEU milestone. By June 2026, it had already crossed the two million TEU mark, with Mediterranean Shipping Company (MSC) underwriting almost all its volumes. The strategic collaboration with MSC is anticipated to bring significant advantages to APSEZ, including increased cargo volumes, a larger share of Bangladesh cargo, a stronger presence on East Africa trade routes, and higher relay cargo volumes.
The investment from TiL is expected to facilitate the port's expansion plans. Vizhinjam is currently undergoing an expansion that will increase its capacity 3.5 times, from its initial 1.6 million TEU capacity to 5.7 million TEUs by December 2028. This move aligns with APSEZ's strategy of forming joint ventures with major global container shipping lines, as seen with their partnerships at Mundra Port and Kamarajar Port, where TiL also holds a 49% stake in a container terminal.
