THIRUVANANTHAPURAM: In a landmark investment for India's port sector, Switzerland-based Mediterranean Shipping Company (MSC), will invest Rs 13,220 crore ($1.397 billion) to acquire a 49% stake in the Vizhinjam International Seaport. MSC's investment is the largest foreign investment in Kerala to date.
The investment will be made through MSC's terminal operating and investment arm, Terminal Investment Limited, under an agreement signed with Adani Ports and Special Economic Zone Limited.
Under the pact, TiL will acquire a 49% interest in Adani Vizhinjam Port Private Limited, the concessionaire operating the Vizhinjam port. The transaction is subject to customary approvals, including regulatory clearances.
The partnership is expected to strengthen Vizhinjam's position as a major transshipment hub in the Indian Ocean by increasing cargo volumes, attracting more global shipping services and accelerating the port's long-term growth.
Responding to the development, the Adani Group said MSC's entry would mark a major leap forward in the growth of the Vizhinjam port.They noted that the collaboration would enhance connectivity, attract more container traffic and support the development of world-class port infrastructure. This is the third port partnership between Adani Ports and MSC in India.
The port now has a container handling capacity of 1.6 million Twenty-foot Equivalent Units (TEUs). Once the expansion is completed by December 2028, the capacity will increase 3.5 times to 5.7 million TEUs.
The port has a natural draft of 18-20 metres, a 2.9-km breakwater, an 800-metre berth, eight quay cranes and 24 fully automated yard cranes. As India's first fully automated port, it also operates with advanced container handling systems and an AI-enabled indigenous Vessel Traffic Management System (VTMS).
Vizhinjam has recorded rapid growth since its commissioning in 2024. During 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 just 18 months, it surpassed 2 million TEUs and handled over 950 vessels. In June this year, the port welcomed its 1,000th vessel.