Adani Ports and SEZ has expanded its strategic partnership with Mediterranean Shipping Company (MSC), under which Terminal Investment Ltd, MSC’s container terminal operating and investing arm, will pick a 49 per cent stake in Adani Ennore Container Terminal (AECTPL) for Rs 247 crore. The total enterprise value of AECTPL is Rs 1,211 crore and a current annual capacity of 0.8 million TEUs, which can be expanded to 1.4 million TEUs annually.
The transaction is subject to regulatory approvals, and is expected to be completed within 3-4 months. Once the transaction is completed, APSEZ would hold 51 per cent stake in AECTPL.
APSEZ stated that the second joint venture with Terminal Investment builds on the success of the 2013 joint venture for Adani International Container Terminal Pvt Ltd (AICTPL), which operates CT3 Container Terminal at Mundra Port.
Karan Adani, CEO and Whole Time Director of APSEZ said that the strong partnership with TiL and MSC is based on mutual trust and transparency and reflects their 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,” Adani said.
Ammar Kanaan, CEO of Terminal Investment Ltd said that this association will allow them to improve their presence in one of the world’s fastest growing economies and strengthen their offering to customers in the Indian subcontinent.
Located on India’s east coast, AECTPL has a quay length of 400 meters. 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.
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