APSEZ in Talks to Sell Up to 49% Stake in Vizhinjam Port to MSC

The proposed transaction would make MSC, currently the port’s largest customer, a strategic shareholder in India’s first dedicated deep-water container transshipment hub. The move is in line with APSEZ’s strategy of partnering with major global shipping lines to attract cargo volumes and strengthen terminal operations.      APSEZ already operates successful joint ventures with MSC’s terminal arm, Terminal Investment Ltd (TiL), and French shipping major CMA CGM at Mundra Port. TiL also owns a 49 per cent stake in the container terminal operated by APSEZ at Kamarajar Port in Tamil Nadu.      The stake sale discussions are understood to be consistent with the concession agreement signed between APSEZ and the Government of Kerala, which permits the port operator to dilute its shareholding subject to regulatory approvals.

Vizhinjam Port commenced commercial operations on December 3, 2024, and has achieved the milestone of handling over 2 million twenty-foot equivalent units (TEUs) within just 18 months, making it the fastest port in India to reach that mark. Industry sources indicate that a significant portion of this volume has been generated through MSC services.

The milestone underscores Vizhinjam’s rapid emergence as a globally competitive transshipment hub. Since operations began, the port has handled more than 950 vessels, including 67 ultra-large container vessels (ULCVs). It has hosted some of the world’s largest container ships, including MSC Irina and MSC Verona.

Located just 10 nautical miles from the busy international east-west shipping corridor, Vizhinjam offers a strategic geographic advantage for cargo movement between Asia, Europe, Africa and the Middle East. Its natural draft of around 20 metres allows it to accommodate the largest container vessels currently in operation, enhancing operational efficiency and reducing vessel turnaround times.

The port’s growth is expected to help India reduce its long-standing dependence on foreign transshipment hubs such as Colombo, Singapore, Jebel Ali and Port Klang. By retaining more transshipment cargo domestically, Vizhinjam is expected to strengthen India’s position in global maritime trade.      To support future growth, APSEZ has begun work on a major expansion project worth approximately ₹16,059 crore ($1.75 billion), which will increase the port’s annual handling capacity by 4.1 million TEUs. Upon completion in 2028, Vizhinjam’s total capacity will rise from 1 million TEUs to 5.1 million TEUs, with operational capability expected to reach as high as 5.7 million TEUs annually through automation and efficiency improvements.

The expansion includes extending the existing container berth from 800 metres to 2,000 metres, enabling the simultaneous berthing of up to five mother vessels. The project also includes the installation of 12 additional ship-to-shore cranes and 27 new yard cranes.      The expanded facility will be capable of handling next-generation container vessels carrying up to 28,000 TEUs, positioning Vizhinjam as a major regional transshipment hub serving the Indian subcontinent, Africa, the Middle East and other global trade corridors.      The developments come amid growing geopolitical uncertainties and supply-chain disruptions that are prompting shipping lines to seek resilient and strategically located maritime infrastructure.      Meanwhile, MSC’s plans to increase its Indian presence have gained importance following the government’s decision to roll back the cabotage waiver that had allowed foreign-flag vessels to transport transshipment cargo and empty containers along India’s coast without special licences. Although the withdrawal was initially scheduled to take effect in April, the implementation has been deferred until October 2026.

Industry stakeholders have expressed concerns over the rollback. Speaking to ET Infra, Sunil Vaswani, Executive Director of the Container Shipping Lines Association (CSLA), warned that the move could adversely affect the availability of empty containers, increase logistics costs and impact the efficiency of container movement across Indian ports.