Vizhinjam Port – MSC Commits Record Foreign Investment to Expand Kerala Seaport
Vizhinjam Port – India’s maritime sector has received a significant boost as Switzerland-based Mediterranean Shipping Company (MSC) announced an investment of Rs 13,220 crore (approximately $1.397 billion) to acquire a 49 percent stake in the Vizhinjam International Seaport project in Kerala. The deal marks the largest foreign direct investment ever made in the state’s history and highlights growing global confidence in India’s port infrastructure.
Strategic Partnership for Port Expansion
The investment will be made through Terminal Investment Limited (TiL), MSC’s port investment and terminal operating subsidiary. The agreement has been signed with Adani Ports and Special Economic Zone Limited, which is currently developing and operating the Vizhinjam port project.
Under the terms of the agreement, TiL will purchase a 49 percent share in Adani Vizhinjam Port Private Limited, the company responsible for operating the deep-water port. The transaction will become effective after receiving the necessary regulatory and statutory approvals.
Strengthening India’s Transshipment Capabilities
The new partnership is expected to play a key role in strengthening Vizhinjam’s position as a leading transshipment hub in the Indian Ocean region. Industry experts believe the collaboration will help attract additional international shipping routes, increase cargo movement, and support the port’s long-term commercial growth.
Adani Group welcomed the investment, describing MSC’s participation as an important milestone for the project. According to the company, the collaboration is expected to improve global shipping connectivity, increase container traffic, and further develop world-class port infrastructure at Vizhinjam. The latest agreement also marks the third port-related partnership between Adani Ports and MSC in India.
Capacity Set for Major Increase
Vizhinjam International Seaport currently has an annual container handling capacity of 1.6 million Twenty-foot Equivalent Units (TEUs). Expansion work already underway is expected to significantly enhance its capabilities. Upon completion, targeted for December 2028, the port’s annual capacity is projected to reach 5.7 million TEUs, representing an increase of more than three times its existing handling capability.
The expansion is expected to improve India’s competitiveness in global maritime trade while reducing dependence on foreign transshipment ports for container movement.
Advanced Infrastructure Supports Operations
The port has been designed with modern infrastructure and advanced technology to handle large cargo vessels efficiently. It features a natural draft ranging between 18 and 20 metres, a 2.9-kilometre breakwater, an 800-metre berth, eight quay cranes, and 24 fully automated yard cranes.
Recognised as India’s first fully automated port, Vizhinjam also operates with advanced container handling technologies supported by an indigenous Artificial Intelligence-enabled Vessel Traffic Management System (VTMS). These systems are intended to improve operational efficiency, vessel movement, and cargo handling accuracy.
Rapid Growth Since Commercial Operations
Since beginning operations in 2024, Vizhinjam has recorded strong growth in cargo handling and vessel traffic. During its first year, the port processed around 1.3 million TEUs and handled 615 vessels, making it the fastest port in India to cross the one million TEU milestone.
Its growth continued over the following months, with container handling exceeding 2 million TEUs within just 18 months of operations. Vessel traffic also expanded rapidly, crossing 950 ships before the port welcomed its 1,000th vessel in June this year. These achievements underline the port’s growing importance in regional and international shipping networks as it continues to expand its operational capacity