Congress MP Shashi Tharoor has voiced his support for the proposed investment by Switzerland-based MSC Group in Kerala's Vizhinjam port, calling it a significant development for the state's aspirations to become a global transshipment hub. However, he emphasized that a transaction of this magnitude involving a strategic asset requires thorough scrutiny.
MSC to Acquire 49% Stake in Vizhinjam Port
MSC's Terminal Investment Ltd will acquire a 49% stake in Adani Vizhinjam Port Private Ltd (AVPPL). Tharoor highlighted that this $2.85 billion agreement represents the single largest foreign private investment in Indian port infrastructure. He believes the deal could substantially boost cargo volumes, expand capacity, and create numerous jobs in Kerala.
The Vizhinjam Port has shown rapid growth, crossing 2 million Twenty-foot Equivalent Units (TEUs) in just 18 months. Tharoor noted that this new partnership should accelerate Phase 2 development and solidify Vizhinjam's position as a premier global transshipment hub, bringing more cargo, capacity, and jobs to Kerala.
Call for Due Diligence and Government Approval
Despite his welcome, the Congress leader cautioned against proceeding without adequate review. Tharoor stressed that a transaction involving a strategic asset like Vizhinjam Port deserves comprehensive due diligence, not just applause. He pointed out that the concession agreement governing the port mandates prior approval from the Kerala government for any ownership change exceeding 25%.
According to Tharoor, such approval should only be granted after a review that includes standard national-security and critical-infrastructure checks. He underscored that the port is largely built on state government land and is strategically located on a major global shipping route, necessitating careful consideration.
Tharoor also emphasized the importance of preserving Vizhinjam's status as a common-user facility. He stated that the port must remain non-discriminatory, offering fair access and tariffs for rival shipping lines, even with MSC, a major potential customer, becoming a part-owner. This partnership marks Adani Ports' third collaboration with MSC, following similar ventures at Mundra and Ennore ports.
The deal, subject to regulatory approvals, is expected to significantly increase cargo traffic and accelerate capacity expansion at the Kerala port. Tharoor concluded that if handled correctly, this agreement would secure Vizhinjam's future, bringing lasting benefits to Kerala. He affirmed his commitment to engaging with both the Kerala government and AVPPL on the matter.