Congress Member of Parliament Shashi Tharoor has expressed his support for the proposed investment by Switzerland-based MSC Group in Kerala's Vizhinjam port, hailing it as a significant development for the state's aspirations to become a global transshipment hub. However, Tharoor also underscored the necessity for thorough due diligence on a transaction of this magnitude.
MSC's Terminal Investment Ltd (TIL) is set to acquire a 49% stake in Adani Vizhinjam Port Private Ltd (AVPPL), a deal reportedly valued at $2.85 billion. Tharoor highlighted this as the single largest foreign private investment in Indian port infrastructure, noting its potential to boost cargo volumes, expand capacity, and create numerous jobs within Kerala.
Key Investment and Growth Potential
The Vizhinjam Port has demonstrated rapid growth, reportedly crossing 2 million TEUs (Twenty-foot Equivalent Units) in just 18 months. This new partnership with MSC, one of the world's largest container lines, is expected to accelerate the port's Phase 2 development and solidify its position as a crucial global transshipment hub.
As the MP for the constituency where the port is located, Tharoor emphasized the positive implications: "More cargo, more capacity, more jobs for Kerala."
Call for Scrutiny and Government Approval
Despite his optimism, Tharoor cautioned that a transaction involving such a strategic national asset demands rigorous review. He pointed out that under the existing concession agreement for the port, any change in ownership exceeding 25% requires prior approval from the Kerala government.
This approval, he argued, should only follow a comprehensive review that includes standard national security and critical infrastructure checks, especially given the port's construction largely on state government land and its strategic location on a major global shipping route.
Preserving Common-User Status
Tharoor also stressed the importance of maintaining Vizhinjam's status as a common-user facility. He advocated for the port to remain non-discriminatory, offering fair access and tariffs to all shipping companies, even as MSC becomes a part-owner. This ensures a level playing field for rival shipping lines.
The deal, which marks Adani Ports' third partnership with MSC after similar ventures at Mundra and Ennore ports, was also reported by Reuters, confirming that Adani Ports and Special Economic Zone stated the acquisition is subject to regulatory approvals. Tharoor concluded that "Done right, this cements Vizhinjam's future, to Kerala's lasting benefit," and affirmed his commitment to engaging with both the Kerala government and AVPPL on the matter.