THIRUVANANTHAPURAM: The deal with Mediterranean Shipping Company (MSC) at Vizhinjam Seaport is set to divert “a significant portion” of cargo business from Sri Lanka’s Colombo Port to India, the Adani Group has claimed in its letter to the state government, as it looked to allay Chief Minister V D Satheesan’s concerns over the proposed Rs 13,000-crore agreement with MSC, touted as the single largest foreign private investment in Indian port infrastructure.
While Colombo Port, which handled 8.4 million TEUs last year, remains the dominant transshipment hub in the region, the new Adani-MSC alliance is expected to disrupt regional maritime dynamics. By December 2028, Vizhinjam’s ongoing Phase 2 expansion is slated to scale its capacity 3.5 times to 5.7 million TEUs.
After submitting the application, Adani Ports CEO Ashwani Gupta said the collaboration will directly attract traffic from Colombo and similar regional hubs, leveraging MSC’s status as the world’s largest container shipping line. The move, he said, will help in the growth of port ecosystem, creating more local job opportunities.
Saying the deal will open up more ship movements from Vizhinjam to East Africa and Bangladesh, the group also reiterated that Vizhinjam will always function as a “common user terminal” with non-discriminatory access for all carriers.
Adani group to retain Vizhinjam’s majority control, says letter
Port administrators concurred. In a recent interaction with TNIE as part of the Express Dialogues series, Jose Paul, the former acting chairman of Navi Mumbai’s Jawaharlal Nehru Port (JNPT), had said there was no reason for Indian cargo to continue being routed through Colombo once Vizhinjam has the required capacity.
“MSC can redirect a significant share of this traffic. If the company chooses, cargo currently moving through Colombo, and even some volumes from Singapore and Tanjung Pelepas, could shift to Vizhinjam,” he had said.
Recently, Vizhinjam became the fastest Indian port to handle 2 million TEUs, achieving the milestone in just 18 months by capturing mainline vessels directly on the Indian coast. This rapid scale-up naturally cuts into volumes that previously would have automatically routed through Sri Lanka.
Former shipping secretary K Mohandas noted that the strategic partnership will accelerate Vizhinjam’s growth, as MSC’s terminal investment arm will focus on maximising vessel calls rather than enforcing a monopoly.
The letter clarified that after the proposed transaction, majority control will continue to remain with Adani Ports and Special Economic Zone Ltd (APSEZL), which will continue to appoint majority of the directors on the board of directors of the concessionaire and be responsible for complete operations and management of the port in compliance with the concession agreement.
The application has been forwarded to the state’s empowered committee, chaired by the chief secretary, to ensure the interests of the state are protected. A final decision will be taken by the cabinet following a report and subsequent clearance from the Union government.
Majority of Colombo volume Indian
Historically, Colombo has relied heavily on India, with nearly 80% of its total transshipment volume comprising containers originating from or destined for Indian ports. Vizhinjam sits just 10 nautical miles from the main international East-West shipping route, compared to Colombo’s 30 nautical miles
What’s the deal?
APSEZL is proposing to sell a 49% equity stake in Adani Vizhinjam Port Pvt Ltd, the concessionaire to Switzerland-based MSC for I13,000-crore. They require the approval from state and Union governments.
