Adani Ports, the Transport utility company, has made a significant move by selling a portion of its business to Mediterranean Shipping Company (MSC) for around Rs 247 crore. This deal involves Adani Ports and Special Economic Zone Ltd (APSEZ) partnering with MSC's arm, Terminal Investment Limited (TiL), to manage Adani Ennore Container Terminal Pvt Ltd (AECTPL).
MSC is renowned as the world's largest container shipping line, and TiL, its associate, is set to acquire 49% of AECTPL from APSEZ for Rs 247 crore. This collaboration marks their second venture after joining forces in 2013 for Adani International Container Terminal Pvt Ltd (AICTPL), which operates the CT3 Container Terminal at Mundra Port, India's largest private commercial port.
Karan Adani, CEO and Whole Time Director of APSEZ, expressed, "This partnership strengthens our ties in a rapidly growing container terminal market in the southern region. We aim to replicate the success of the AICTPL terminal at the Ennore Container Terminal and cater to the trade demands in South India."
The total value of AECTPL stands at Rs 1,211 crore, as revealed by Adani Ports in a press release. However, the transaction is subject to regulatory approvals, and post-completion, APSEZ will retain a 51% stake in AECTPL.
AECTPL, located on India's east coast, boasts a quay length of 400 meters and an annual handling capacity of 0.8 million TEUs. In the fiscal year FY23, the terminal handled 0.55 million TEUs and 0.45 million TEUs in the initial eight months of the ongoing fiscal year, as per the company's reports.
Adani Ports also noted that the terminal's concession period extends until 2044, and there's potential to increase its annual capacity to 1.4 million TEUs.
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