Adani Ports and Special Economic Zone Ltd (APSEZ), India's leading integrated transport operator, has finalized a definitive agreement to divest a 49% share in Adani Vizhinjam Port Private Limited (AVPPL) to TiL, the container terminal operating and investment arm of MSC Group, the world's largest transport and logistics conglomerate. The deal, valued at $1.4 billion, underscores a significant strategic move for both entities.
This collaboration is heralded as the largest foreign private investment in India's port infrastructure. TiL's investment of $1.397 billion directly corresponds to its proportionate 49% share of the port's $2.85 billion valuation. The transaction is contingent upon securing customary regulatory approvals.
Strategic Advantages for APSEZ
The partnership between APSEZ and MSC Group is anticipated to yield substantial benefits for Adani Ports, including:
- Enhanced Volume Visibility: The collaboration is expected to bring increased cargo volumes, accelerating the port's ramp-up ahead of schedule.
- Expanded Market Reach: APSEZ anticipates a higher share of cargo destined for Bangladesh, which currently relies heavily on competing Southeast Asian transshipment hubs.
- Strengthened Trade Routes: The deal is set to bolster APSEZ's presence on vital East Africa trade routes and elevate relay cargo volumes.
Ashwani Gupta, Whole-time Director and CEO at APSEZ, commented on the development: “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.” He added, “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.”
Vizhinjam Port: A Deep-Draft Mega Transshipment Hub
Commissioned in December 2024, Vizhinjam port stands as India's first deep-draft mega transshipment port, boasting an initial capacity of 1.6 million TEUs (Twenty-foot Equivalent Units). An ongoing expansion project aims to significantly boost its capacity by 3.5 times, reaching 5.7 million TEUs by December 2028.
The port's strategic location, merely 10 nautical miles from the crucial East-West shipping route connecting Europe, the Persian Gulf, and the Far East, positions it as a critical maritime gateway. Vizhinjam features a natural draft ranging from 18–20 meters, a 2.9 km breakwater, an 800-meter berth, and state-of-the-art infrastructure, including 8 quay cranes and 24 fully automated yard cranes.
During FY26, Vizhinjam port demonstrated remarkable operational efficiency, handling 1.3 million TEUs and accommodating 615 vessels in its inaugural year. It rapidly surpassed the 1 million TEU milestone, becoming the fastest Indian port to do so. Within 18 months, it further exceeded 2 million TEUs and 950 vessels, setting another national record. By June 2026, the port had welcomed its 1,000th vessel. Notably, Vizhinjam has handled over 70 Ultra Large Container Vessels (ULCVs) – the highest among Indian ports – alongside 283 vessels exceeding 300 meters in length and 98 vessels requiring drafts greater than 16 meters.