By Megan Cheah
Adani Ports & Special Economic Zone has agreed to sell 49% of one of its Indian ports to Swiss-based Mediterranean Shipping Company for $1.40 billion, as it seeks to boost the cargo volumes through the Kerala-based transshipment hub.
The Indian port operator, part of energy and infrastructure conglomerate Adani Group, said Tuesday the deal with MSC is the single largest foreign private investment in Indian port infrastructure.
MSC, the world's largest transport and logistics conglomerate, is making the investment in port concessionaire Adani Vizhinjam Port through its unit Terminal Investment.
The investment values the Vizhinjam port at $2.85 billion. It currently has a capacity of 1.6 million twenty-foot equivalent units--the standard unit of measurement for cargo capacity--and that is being expanded to 5.7 million TEUs by end-2028.
Adani Ports' deal with MSC, which is subject to customary approvals, is likely to boost the port's volume visibility and ramp-up, as well as strengthen its presence on East African trade routes, said the company. Adani Ports and MSC have two other major port partnerships.
The companies' collaboration is poised enhance supply chain efficiencies and improve India's access to global markets, Adani Ports Chief Executive Ashwani Gupta said.
Adani Ports' shares are 0.7% higher at 1,789.00 rupees, equivalent to $18.90.
Write to Megan Cheah at megan.cheah@wsj.com