The world’s largest container liner shipping company MSC is further expanding its portfolio of terminal holdings. The latest step takes the company to Ennore.
MSC, or rather its subsidiary Terminal Investment Limited (TIL), which is responsible for the port business, has entered into an agreement with Adani Ports, which claims to be “India’s largest transportation company.”[ds_preview]
It is the second “strategic partnership” with TIL, Adani announced. This time it is for the operation of the Adani Ennore Container Terminal (AECTPL). “This second joint venture builds on the success of the 2013 joint venture with TiL for Adani International Container Terminal (AICTPL), which operates the CT3 Container Terminal at Mundra Port, India’s largest private commercial port,” the Indian company said in a statement.
Located on the east coast of India, AECTPL has a quay length of 400 meters and an annual handling capacity of 0.8 million TEUs. The concession for the terminal runs until 2044 and its annual capacity can be expanded to 1.4 million TEUs.
For MSC, this is the next step in a large-scale expansion strategy – not only in terms of an enormous expansion of the fleet, but also in the terminal business, as demonstrated by the much-discussed entry into the Hamburg terminal operator HHLA.
“With this second joint venture, we are deepening our strategic partnership in one of the fastest growing container terminal markets in the south of the country. Our aim is to replicate the success of the AICTPL terminal at Ennore Container Terminal and serve the trade needs of the South Indian market,” said Karan Adani, CEO and full-time director of APSEZ.
TIL to grow with Adani partnership
Under the agreement, TIL is to acquire a 49% stake in AECTPL from APSEZ through a wholly-owned subsidiary Mundi at a price equivalent to around €30 million. The transaction is subject to regulatory approvals.
Ammar Kanaan, CEO of Terminal Investment, said: “This tie-up will enable us to further enhance TiL’s presence in one of the fastest growing economies in the world and strengthen our offering to customers in the Indian subcontinent.”
The MSC subsidiary currently has a portfolio of over 70 terminals, including upcoming projects in 31 countries.
