India to Become a Transshipment Hub: $1.4 Billion Foreign Investment in Adani Port; Here’s MSC’s Stake

Adani Ports has announced the signing of a definitive agreement with the MSC Group. Under this agreement, Terminal Investment Limited (TIL)—MSC Group’s container terminal operating and investment arm—will invest approximately $1.4 billion for a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL).

How significant is this agreement?

This agreement is considered the largest foreign private investment in India’s port sector to date. It will further strengthen Vizhinjam Port’s position as a key transshipment hub in the Indian Ocean region. Under the deal, TIL will invest around $1.397 billion in Vizhinjam Port, representing a 49% stake based on the port’s total valuation of $2.85 billion.

What has Vizhinjam Port achieved in 18 months?

Ashwani Gupta, Whole-time Director and CEO of APSEZ, stated that Vizhinjam Port has emerged as a major transshipment hub in a very short span of time. He said, “In just 18 months, Vizhinjam Port has crossed the milestone of handling 2 million TEUs (Twenty-foot Equivalent Units) of cargo. It has become the first port in India to achieve this feat.” He further expressed happiness that APSEZ’s long-standing partnership with MSC is now extending to Vizhinjam Port. He believes this collaboration will enhance global supply chain efficiency and further strengthen India’s connectivity to key developed and emerging global markets.

The company stated that the deal will be concluded following the receipt of regulatory and other necessary approvals. According to APSEZ, this strategic partnership with the MSC Group will yield significant benefits. This will lead to a rapid increase in the port’s capacity due to the influx of additional cargo, enabling an expansion of operations ahead of schedule. Furthermore, there will be a rise in the share of cargo originating from Bangladesh—which currently relies on other transshipment hubs in Southeast Asia. Additionally, the company’s presence on East African trade routes will strengthen, and the volume of relay cargo is also expected to increase.

What is TIL?

Terminal Investment Limited (TIL) is one of the world’s largest container terminal operating companies. Part of the MSC Group, it operates a network of over 100 container terminals across five continents. The company handles more than 70 million TEUs of cargo annually. Vizhinjam Port, which commenced operations in December 2024, is India’s first deep-draft mega transshipment port, boasting a current capacity of 1.6 million TEUs.