APSEZ and MSC Group Deepen Partnership: TiL Commits USD 1.397bn for 49% Stake in Vizhinjam Port

APSEZ and MSC Group Deepen Partnership: TiL Commits USD 1.397bn for 49% Stake in Vizhinjam Port​

Adani Ports and Special Economic Zone Limited (APSEZ) has formalized a strategic partnership with Mediterranean Shipping Company (MSC) Group, through its terminal arm Terminal Investment Limited (TiL). Under the agreement, TiL will invest in a 49% stake of Adani Vizhinjam Port Private Limited (AVPPL), cementing Vizhinjam's role as a major transshipment gateway in the Indian Ocean region.

The deal structure sees TiL investing USD 1.397bn into AVPPL, which constitutes 49% of the total transaction value set at USD 2.85bn. This collaboration marks the third significant venture between APSEZ and MSC following successful joint ventures at ports in Mundra (Container Terminal No. 3) and Ennore.

Mundi Limited, a subsidiary of TiL, is the buyer for this stake. The transaction falls outside related party transactions and was finalized on June 29, 2026. APSEZ will retain 51% equity and maintain control over AVPPL as a subsidiary company.

Operational Capacity and Future Growth​

Vizhinjam port, commissioned in December 2024, is noted as India's first deep-draft mega transshipment port. The facility currently boasts a capacity of 1.6 million TEUs (Phase 1) and is undergoing an expansion that is expected to increase its total capacity by 3.5 times to 5.7 million TEUs by December 2028.

The port has already set significant operational milestones, having crossed the 2 million TEU mark within 18 months of operation. In June 2026, Vizhinjam welcomed its 1,000th vessel. The port features advanced infrastructure, including a natural draft of 18-20 meters and is utilizing an indigenous AI-enabled Vessel Traffic Management System (VTMS).

Strategic Advantages for APSEZ​

The partnership is projected to deliver substantial advantages for APSEZ. These benefits include enhanced volume visibility and accelerated ramp-up ahead of schedule, driven by additional cargo volumes. Furthermore, the collaboration is expected to strengthen APSEZ's presence on East Africa trade routes, secure a higher share of Bangladesh cargo, and increase relay cargo volumes.

The investment from TiL will be completed in two tranches against AVPPL’s total deal value:

Port Specifications and Performance Highlights​

Vizhinjam port is strategically located approximately 10 nautical miles from the East-West shipping route, positioning it favorably near key international trade routes.

Key operational achievements include:

• Vessel Handling: The port has berthed over 70 Ultra Large Container Vessels (ULCVs) and 98 vessels requiring drafts greater than 16 meters.
• International Presence: The port successfully welcomed the MSC Irina, noted as the largest vessel in the world when it called at any South Asian port.

The strategic collaboration underscores Vizhinjam's emergence as a premier transshipment hub capable of catering to large-scale global trade needs.

ADANIPORTS Stock Price Movement​

Adani Ports and Special Economic Zone Limited slipped by 0.76% on Monday, closing at ₹1776.10 after shedding ₹13.70 in value. The stock accounted for a volume of 1.69 million shares during the trading session.