India Objects to Adani’s Handling of MSC’s $1.4B Investment

Global shipping giant Mediterranean Shipping Company (MSC) is poised to make the largest foreign private investment in India’s port infrastructure, but the $1.4 billion deal is not without controversy. Adani Ports developed the Vizhinjam port and announced it had struck a deal with MSC, but the local government is expressing its “strong displeasure” that it was not consulted about the proposed investment.

MSC, which has been aggressively expanding its terminal operations through its subsidiary Terminal Investment Limited (TiL), entered into a definitive agreement with Adani Ports and Special Economic Zone (APSEZ) to acquire a 49 percent stake in Vizhinjam port. Adani, which holds a 40-year concession for the port secured in 2015, will retain a 51 percent stake at the facility.

The State Government in Kerala, where the port is located, however, said late on Thursday that a change in the ownership of the concession requires government approval. They said the deal would be examined “strictly under the provisions of the concession agreement and anticipated regulations.

Adani announced the deal on June 29 saying it would cement Vizhinjam’s emergence as a dominant transshipment gateway in the Indian Ocean. The investment by TiL comes barely two years after Vizhinjam port was commissioned in December 2024.  

Despite being in operation for less than two years, Vizhinjam port’s profile has been on the rise driven by its strategic location just 10 nautical miles from the East-West shipping route connecting Europe, the Persian Gulf, and the Far East. Officials highlight that the port features a natural draft of 18–20 meters (59-65 feet), a 2.9-kilometer breakwater, an 800-meter berth, and advanced infrastructure, including eight quay cranes and 24 fully automated yard cranes.

With a total capacity of 1.6 million TEU, Vizhinjam has been described as India’s first deep-draft mega transshipment port. In its first year of operation, the port handled 1.3 million TEU and 615 vessels, becoming the fastest Indian port to cross the 1 million TEU milestone. Last week, the MSC Luciana became the 1000th commercial vessel to arrive at Vizhinjam International Seaport. 

Vizhinjam is being touted as India’s first automated port that combines cutting-edge container handling systems, a world-class IT platform, and an AI-enabled indigenous vessel traffic management system that is designed to drive operational efficiency, safety, and reliability. An ongoing expansion project is expected to increase the port’s capacity to 5.7 million TEU by December 2028.