MSC Partnership to Position Vizhinjam as Regional Transshipment Hub, Challenge Colombo’s Dominance

The claim was made in a letter submitted to the Kerala government seeking approval for APSEZ’s proposal to sell a 49% equity stake in Adani Vizhinjam Port Pvt. Ltd. to Switzerland-based MSC for ₹13,000 crore, a transaction being described as the largest foreign private investment in Indian port infrastructure.      According to APSEZ, the partnership with MSC—the world’s largest container shipping line—will enable Vizhinjam to attract a significant volume of transshipment cargo currently handled by Colombo and other regional hubs. The company highlighted that the collaboration would accelerate the development of the port ecosystem, generate employment, and strengthen India’s role in international maritime trade.   The port’s ongoing Phase II expansion, scheduled for completion by December 2028, will increase Vizhinjam’s container handling capacity by nearly 3.5 times, from the current level to 5.7 million TEUs, positioning it among the leading transshipment hubs in the region.      Adani Ports CEO Ashwani Gupta said the strategic alliance would allow MSC to leverage Vizhinjam’s proximity to the major East-West shipping corridor and redirect cargo that currently transits through Colombo. He added that the partnership would also enhance connectivity with emerging markets, including East Africa and Bangladesh, while creating new opportunities for local businesses and employment.   APSEZ reiterated that Vizhinjam will continue to operate as a common-user terminal, providing non-discriminatory access to all shipping lines despite MSC’s investment. The company clarified that following the transaction, APSEZ will retain majority ownership and management control of the concessionaire, including the appointment of the majority of directors and responsibility for the port’s operations under the existing concession agreement.      Industry experts believe the partnership could significantly alter regional shipping patterns. Former Jawaharlal Nehru Port Trust (JNPT) acting chairman Jose Paul observed that once Vizhinjam reaches its planned capacity, there will be little reason for Indian transshipment cargo to continue moving through Colombo. He noted that MSC could potentially shift substantial volumes from Colombo, and even cargo currently handled at Singapore and Malaysia’s Tanjung Pelepas, to Vizhinjam.   Former Shipping Secretary K. Mohandas also said the partnership would accelerate Vizhinjam’s growth, emphasizing that MSC’s terminal investment arm would focus on increasing vessel calls rather than creating a monopoly. Vizhinjam recently became the fastest Indian port to handle 2 million TEUs, achieving the milestone in just 18 months of operations by attracting direct mainline vessel calls on the Indian coast.

The proposal has now been referred to Kerala’s Empowered Committee, headed by the Chief Secretary, for evaluation before being placed before the State Cabinet. The transaction will also require approval from the Union Government before it can be finalized.   Colombo Port currently handles around 8.4 million TEUs annually, with nearly 80% of its transshipment volumes linked to Indian cargo. Vizhinjam’s strategic location—just 10 nautical miles from the main East-West international shipping route, compared to Colombo’s 30 nautical miles—is expected to provide a significant competitive advantage as India seeks to capture a larger share of regional transshipment traffic.