"Share transfer will need state approval," Keralam CM VD Satheesan on MSC group investing in Vizhinjam Port
Thiruvananthapuram, July 1
Keralam Chief Minister VD Satheesan on Wednesday informed the State Assembly that any reported share sale in the Vizhinjam International Port would require state approval before finalisation.
"The news that 49% of the shares of Adani Ports Limited, which operates the Vizhinjam International Port, would be transferred to the MSC Group had come to the government's attention. However, no approval has been sought from the government for this. According to regulations, share transfers cannot be carried out without government approval. Approval from the state government is required, and in certain matters, approval from the central government is also necessary. They have not approached the authorities seeking such approval," the Keralam CM said in the Assembly.
According to a statement by Adani Ports and Special Economic Zone Limited (APSEZ) on June 30, APSEZ and Mediterranean Shipping Company (MSC Group), the world's largest transport and logistics conglomerate, have entered into a definitive agreement under which MSC Group, via its container terminal operating and investing arm, TiL, will invest for 49% interest in AVPPL, the concessionaire for Vizhinjam port.
TiL is one of the world's largest container terminal operators and part of the MSC Group comprising a portfolio of more than 100 container terminals across five continents and a throughput of more than 70 million TEUs per annum.
APSEZ said that the strategic collaboration represents the single largest foreign private investment in Indian port infrastructure and cements Vizhinjam's emergence as a dominant trans-shipment gateway in the Indian Ocean region. According to APSEZ, the transaction is subject to customary approvals, including regulatory ones. TiL will invest USD 1.397bn, equivalent to its proportionate 49% share of USD 2.85bn.
"Vizhinjam port has emerged as a premier trans-shipment hub and ramped up at an unprecedented pace, becoming the first Indian port to earn the unique distinction of crossing 2 million TEUs within 18 months of operations," said Ashwani Gupta, Whole-time Director and CEO, APSEZ.
"I am delighted to expand APSEZ's long-standing partnership with MSC to Vizhinjam, as we prepare for the port's next leg of journey. I am confident that our association will deliver enhanced supply chain efficiencies at a global scale and improve India's access to key global mature and developing markets," he added.
APSEZ said that the strategic collaboration between APSEZ and MSC Group will deliver significant advantages for APSEZ, including: Enhanced volume visibility and accelerated ramp-up ahead of plan, driven by additional cargo volumes; Higher share of Bangladesh cargo, largely dependent on competing Southeast Asian trans-shipment hubs; Strengthening presence on East Africa trade routes; Elevated relay cargo volumes.
According to information from APSEZ, Vizhinjam port is India's first deep-draft mega trans-shipment port with 1.6 million TEU capacity. The port is undergoing expansion that will increase capacity 3.5x to 5.7 million TEUs by December 2028. Vizhinjam port is strategically located just ~10 nautical miles from the East-West shipping route connecting Europe, the Persian Gulf, and the Far East. The port features a natural draft of 18-20m, a 2.9 km breakwater, an 800m berth, and advanced infrastructure, including 8 quay cranes and 24 fully automated yard cranes. As India's first automated port, Vizhinjam combines cutting-edge container handling systems, a world-class IT platform, and an AI-enabled indigenous Vessel Traffic Management System (VTMS) to drive operational efficiency, safety and reliability.
During FY26, Vizhinjam port handled 1.3 million TEUs. In its first year, Vizhinjam port handled 1.3 million TEUs and 615 vessels, becoming the fastest Indian port to cross the 1 million TEU milestone. Within 18 months, it surpassed 2 million TEUs and 950 vessels, setting another national record. In June 2026, Vizhinjam welcomed its 1,000th vessel. The port has handled over 70 Ultra Large Container Vessels (ULCVs)--the highest among Indian ports--along with 283 vessels exceeding 300m in length and 98 vessels requiring drafts greater than 16m.
— ANI
Reader Comments
This is classic Kerala politics – trying to control everything. MSC Group bringing $1.4 billion investment and world-class expertise, but the CM is busy with procedural hurdles. Let the business flow, ji. The port is already doing great numbers – 2 million TEUs in 18 months is phenomenal.
Actually, I think the CM is right to be cautious. Look what happened with other big infrastructure projects – we need to ensure national security and local interests are protected. MSC is a global giant, but approval processes exist for a reason. Let's do it systematically. 💪
Happy to see Vizhinjam becoming a trans-shipment hub. Bangladesh cargo shifting here, East Africa trade – all good for 'Make in India'. But state and centre must work together. Satheesan should coordinate with Modi government for smooth approvals.
I'm just glad that Kerala is finally getting world-class infrastructure. Vizhinjam's natural depth of 18-20m and automated systems are incredible. Hope this doesn't get stuck in bureaucratic red tape. The port has already created thousands of jobs! 🇮🇳
One concern: if 49% shares go to MSC, who ensures key decisions are made in India's interest? Yes, investment is welcome, but port security and strategic control matter. The state should scrutinize this deal thoroughly before giving nod. Not against foreign investment, but with caution.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.