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MSC Terminal Investment Ltd, the container terminal operating and investing arm of the Switzerland-based major Mediterranean Shipping Company (MSC), has taken 49 per cent stake in Adani Ennore Container Terminal (AECTPL) for an equity consideration of ₹247 crore. MSC is the world’s largest shipping company.
After the completion of the transaction, APSEZ would hold a 51 per cent stake in AECTPL. The deal takes the total enterprise value of AECTPL to ₹1,211 crore.
APSEZ, which is India’s largest private port operator, in a statement said it has expanded partnership with MSC.
AECPL is the second joint venture built on the success of the 2013 joint venture with TiL for Adani International Container Terminal Pvt Ltd (AICTPL), which operates CT3 Container Terminal at Mundra Port, the largest private commercial port in India located in Gujarat.
AECTPL has a current annual capacity of 0.8 million twenty foot equivalent units (TEUs), which can be expanded to 1.4 million TEUs annually, and has a concession ending in 2044.
“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, CEO 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 Terminal Investment Ltd.
“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 m and an annual handling capacity of 0.8 million TEUs. The terminal handled 0.55 million TEUs in FY23 and 0.45 million TEUs in the initial eight months of the current fiscal year.
APSEZ also operates the Katupalli Container terminal located adjacent to the Ennore terminal.
At the time of filing this report, the share price of Adani Ports on the NSE was trading at ₹1,068.75, down by 0.55 per cent.
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