Adani Ports and Special Economic Zone Limited (APSEZ) and Mediterranean Shipping Company (MSC) Group's terminal arm, Terminal Investment Limited (TiL), have announced a definitive agreement which will see TiL investing in Adani Vizhinjam Port Private Limited (AVPPL) for a 49% stake.
"TiL to invest USD 1.397bn, equivalent to its proportionate 49% share of USD 2.85bn," according to a media release by the company.
This is the 3rd major collaboration between APSEZ and MSC following successful joint ventures at ports in Mundra and Ennore.
The strategic collaboration marks the single largest foreign private investment in Indian port infrastructure, establishing Vizhinjam as a dominant transshipment gateway in the Indian Ocean region, said the company.
Vizhinjam port with a capacity of 1.6 million TEUs (Twenty-foot Equivalent Unit) is currently undergoing expansion with an aim to increase capacity 3.5x to 5.7 million TEUs.
The transaction will deliver significant advantages for APSEZ, such as enhanced volume visibility, accelerated ramp-up ahead of plan, higher share of Bangladesh cargo, elevated relay cargo volumes, among others.
“Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace, becoming the first Indian port to earn the unique distinction of crossing 2 million TEUs within 18 months of operations,” said Ashwani Gupta, Whole-time Director and CEO, APSEZ.
“I am delighted to expand APSEZ's long-standing partnership with MSC to Vizhinjam, as we prepare for the port's next leg of journey. I am confident that our association will deliver enhanced supply chain efficiencies at a global scale and improve India's access to key global mature and developing markets,” he added.
The transaction is subject to customary approvals, including regulatory ones.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.