Mediterranean Shipping Company (MSC) is set to invest $1.4 billion in India’s port infrastructure, marking the largest foreign private investment in the sector. However, the deal has sparked controversy as the local government in Kerala expressed its “strong displeasure” over not being consulted regarding the investment. Adani Ports, which developed the Vizhinjam port, announced the agreement to sell a 49 percent stake to MSC’s subsidiary, Terminal Investment Limited (TiL). Adani will maintain a 51 percent stake, having secured a 40-year concession for the port in 2015.
The Kerala State Government stated that any change in the ownership of the concession requires its approval, indicating that the deal will be scrutinized under the existing concession agreement and regulations. Adani touted the deal as a move to establish Vizhinjam as a key transshipment hub in the Indian Ocean, just two years after the port commenced operations in December 2024.
With a capacity of 1.6 million TEU, Vizhinjam is recognized as India’s first deep-draft mega transshipment port. In its inaugural year, it handled 1.3 million TEU and welcomed 615 vessels, quickly becoming the fastest Indian port to surpass the 1 million TEU mark. The port is also noted for its advanced features, including a natural draft of 18–20 meters and a state-of-the-art IT platform aimed at enhancing operational efficiency and safety. An expansion project is underway to boost capacity to 5.7 million TEU by December 2028.
