MSC arm acquires stake in Adani’s Ennore container terminal
Terminal Investment Ltd (TiL), the container terminal operating and investing arm of Swiss MSC Mediterranean Shipping Company, the world’s largest container shipping company, has taken a 49% stake in India’s Adani Ennore Container Terminal Pvt Ltd (AECTPL).
On December 15, Indian port operator and logistics company Adani Ports and Special Economic Zone Ltd (APSEZ) sad it had entered into a second strategic partnership with TiL for the operation of the Ennore terminal.
This second joint venture builds 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.
“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,” Karan Adani, CEO and Whole Time Director of APSEZ, said.
“We are highly pleased to strengthen our partnership with APSEZ, India’s largest private sector port operator,” Ammar Kanaan, CEO of Terminal Investment Ltd, commented.
“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.”
As disclosed, TiL, through its fully owned subsidiary Mundi Ltd, will acquire a 49% shareholding of AECTPL from APSEZ for a consideration of Rs 247 crore (about $29.7 million). 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% stake in AECTPL.
Located on India’s east coast, AECTPL has a quay length of 400 meters 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. The concession period of the terminal is until 2044, and its annual capacity can be extended to 1.4 million TEUs.