MSC arm acquires 49% in Adani Ennore Container Terminal for Rs 247 cr

Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, has strengthened its strategic partnership with Terminal Investment (TiL), the container terminal operating and investing arm of Mediterranean Shipping Company (MSC), the largest container shipping line in the world, for the operation of Adani Ennore Container Terminal (AECTPL).

TiL, through its fully-owned subsidiary Mundi Ltd, will acquire a 49 per cent shareholding of AECTPL from APSEZ for a consideration of Rs 247 crore. The total enterprise value of AECTPL is Rs 1,211 crore. The transaction is subject to regulatory approvals. After the completion of the transaction, APSEZ would hold a 51 per cent stake in AECTPL.

This second joint venture builds on the success of the 2013 joint venture with TiL for Adani International Container Terminal  (AICTPL), which operates CT3 Container Terminal at Mundra Port, the largest private commercial port in India.

"APSEZ enjoys a strong partnership with TiL and MSC, built on mutual trust and transparency, as reflected in our growing alliance. With this second joint venture, we are now further deepening this strategic partnership in one of the fastest-growing container terminal markets in the south. We aim to replicate the AICTPL terminal’s success at the Ennore Container Terminal and service the trade needs of the South Indian market," said Karan Adani, chief executive officer and whole time director of APSEZ.

"This strengthening of our association with the world’s largest shipping company reflects APSEZ’s robust vision of accelerating sectoral growth through a transparent business approach." "We are highly pleased to strengthen our partnership with APSEZ, India’s largest private sector port operator,” said Ammar Kanaan, CEO of TiL. "This association will enable us to further improve TiL’s presence in one of the world’s fastest-growing economies and strengthen our offering to customers in the Indian subcontinent."

Located on India’s east coast, AECTPL has a quay length of 400 meters and an annual handling capacity of 0.8 mn TEUs. The terminal handled 0.55 mn TEUs in FY23 and 0.45 mn TEUs in the initial 8 months of the current fiscal year. The concession period of the terminal is until 2044, and its annual capacity can be extended to 1.4 mn TEUs.