Adani Ports and Special Economic Zone (APSEZ) is set to strengthen its collaboration with the Mediterranean Shipping Company (MSC) as Terminal Investment Ltd (TiL), MSC’s container terminal operating arm, acquires a 49% stake in Adani Ennore Container Terminal (AECTPL) for Rs 247 crore. This move reflects a deepening alliance between the two entities in the rapidly growing container terminal market in South India.
Details of the Transaction:
The total enterprise value of AECTPL stands at Rs 1,211 crore, with a current annual capacity of 0.8 million Twenty-Foot Equivalent Units (TEUs), expandable to 1.4 million TEUs annually. The completion of the transaction is contingent upon regulatory approvals and is expected within the next 3-4 months. Following completion, APSEZ will retain a 51% stake in AECTPL.
Strengthening a Successful Partnership:
This latest joint venture builds upon the success of the 2013 collaboration between APSEZ and Terminal Investment Ltd for Adani International Container Terminal Pvt Ltd (AICTPL), operating the CT3 Container Terminal at Mundra Port. The strategic partnership between APSEZ, TiL, and MSC has been characterized by mutual trust and transparency, fostering a growing alliance.
Comments from APSEZ and TiL Leadership:
Karan Adani, CEO and Whole-Time Director of APSEZ, emphasized the significance of this strategic partnership in one of the fastest-growing container terminal markets in the southern region. Adani expressed the intention to replicate the success of the AICTPL terminal at the Ennore Container Terminal, catering to the evolving trade needs of the South Indian market.
Ammar Kanaan, CEO of Terminal Investment Ltd, highlighted that this association allows them to enhance their presence in one of the world’s fastest-growing economies, thereby strengthening their services to customers in the Indian subcontinent.
Terminal Overview and Future Prospects:
Situated on India’s east coast, AECTPL boasts a quay length of 400 meters. In the fiscal year 2023, the terminal handled 0.55 million TEUs, and in the initial eight months of the current fiscal year, it managed 0.45 million TEUs. The concession period for the terminal extends until 2044.
The expanded collaboration between Adani Ports and SEZ and Mediterranean Shipping Company through the increased investment in Adani Ennore Container Terminal signifies a strategic move to capitalize on the burgeoning container terminal market in South India. This joint venture is anticipated to not only deepen the partnership between the two entities but also contribute to the region’s maritime infrastructure development and address the growing trade demands of the Indian subcontinent.