Adani Ports and SEZ has expanded its strategic alliance with Mediterranean Shipping Company (MSC) by acquiring a 49 percent stake in Adani Ennore Container Terminal (AECTPL) for Rs 247 crore. AECTPL has a total enterprise value of Rs 1,211 crore and an annual capacity of 0.8 million TEUs, which can be increased 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.
According to Karan Adani, CEO and Whole-Time Director of APSEZ, the solid cooperation with TiL and MSC is founded on mutual trust and transparency, and it shows their increasing alliance. "With this second joint venture, we are deepening our strategic partnership in one of the south's fastest growing container terminal markets." "We intend to replicate the success of the AICTPL terminal at the Ennore Container Terminal and serve the trade needs of the South Indian market," Adani stated.
According to Ammar Kanaan, CEO of Terminal Investment Ltd, this partnership will allow them to increase their offering to clients in the Indian subcontinent and improve their presence in one of the world's fastest developing economies.
AECTPL is located on India's east coast and features a 400-meter-long quay. In FY23, the terminal handled 0.55 million TEUs, while in the first eight months of the current fiscal year, it handled 0.45 million TEUs. The terminal is under concession until 2044.
