Adani Ports and Special Economic Zone Ltd (APSEZ) has entered into a second strategic partnership for the operation of Adani Ennore Container Terminal Pvt Ltd (AECTPL) with Terminal Investment Limited (TiL), MSC’s container terminal operating and investing arm.
This second joint venture builds on the success of Adani International Container Terminal Pvt Ltd (AICTPL), which runs CT3 Container Terminal at Mundra Port, India’s largest private commercial port.
TiL, through its wholly owned subsidiary Mundi Ltd, would purchase a 49 per cent stake in AECTPL from APSEZ for Rs 247 crore ($29.7 million).
AECTPL’s total enterprise value is Rs 1,211 crore ($145 million). The deal is subject to regulatory approval. Following the completion of the purchase, APSEZ would own 51 per cent of AECTPL.
Ammar Kanaan, CEO of TiL, said: “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. 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. 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.”
AECTPL, located on India’s East Coast, has a 400-metre quay length and an annual handling capacity of 800,000 TEU.
In FY23, the terminal handled 550,000 TEU, while in the first eight months of the current fiscal year, it handled 450,000 TEU. The terminal’s concession tenure runs until 2044, and its yearly capacity may be increased to 1.4 million TEU.