Adani Ports Announces/To Enter Strategic Partnership With Mediterranean Shipping Company (Image: adaniports.com)
The Adani Ports and Special Economic Zone Ltd. (APSEZ) has joined hands in a strategic partnership with the Mediterranean Shipping Company’s (MSC), container terminal operating and investing arm, Terminal Investment Ltd (TiL). This is the second in line, after a 2013 venture between the TiL and Adani International Container Terminal Pvt Ltd (AICTPL), which operates at Mundra Port Container Terminal.
This second partnership is between the Adani Ennore Container Terminal Pvt. Ltd. (AECTPL) and TiL. TiL is to have 49 percent stake in the AECTPL which stands at an equity consideration of Rs. 247 crore, the press release said. The enterprise value of the AECTPL stands at Rs. 1,211crore. Though the transaction is subject to the regulatory approvals, once the transaction is finalized, the Adani Ports and Special Economic Zone would have a stake of 51 percent in the Adani Ennore Container Terminal Pvt. Ltd.
Karan Adani, CEO and Director of APSEZ, said on this, “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.” He also said that, “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,” the press release said.
On the partnership, Mr Ammar Kanaan, CEO of TiL said that the company was “highly pleased to strengthen” the partnership with APSEZ, and that, the “association will enable,” to “further improve TiL’s presence in one of the world’s fastest growing economies and strengthen” their “offering to customers in the Indian subcontinent.”
The AECTPL, of now, has an annual capacity of 0.8 Mn TEUs. On an annual basis, this can be expanded to 1.4 Mn TEUs; the AECTPL’s concession is to end in the coming year 2024. It is located at the east coast of India, with a quay length of 400 metres. In the FY 2023, the terminal handled 0.55 Mn TEUs and in the first eight months of the ongoing fiscal year, it handled 0.45 Mn TEUs.
The Mediterranean Shipping Company is a global container shipping company founded in Italy in 1970 and Adani Ports and Special Economic Zone Ltd. is a major transport utility in India.
