In the single largest foreign private investment in Indian port infrastructure, MSC Group, through its container terminal operating and investing arm, TiL, will invest $ 1.397bn for 49% interest in AVPPL, the concessionaire for Vizhinjam port in Kerala. The total valuation of AVPPL is $ 2.85billion with APSEZ holding the rest.
Adani Ports and SEZ (APSEZ) , and MSC Group, a global transport and logistics conglomerate, have entered into a definitive agreement for the deal. The transaction is subject to customary approvals, including regulatory ones, APSEZ said on Tuesday.
“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,” said Ashwani Gupta, whole-time director and CEO, APSEZ.
“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,” he said.
The collaboration between APSEZ and MSC Group will deliver significant advantages for APSEZ, including enhanced volume visibility and accelerated ramp-up ahead of plan, driven by additional cargo volumes , higher share of Bangladesh cargo, largely dependent on competing Southeast Asian transshipment hubs , strengthening presence on East Africa trade routes , elevated relay cargo volumes, APSEZ said.