The Kerala Government has clarified that prior State approval is mandatory for the proposed acquisition of a 49% stake in the Vizhinjam International Seaport by Mediterranean Shipping Company (MSC), following the announcement of a $1.397 billion investment by MSC’s terminal operating arm, Terminal Investment Limited (TiL).
Speaking in the Kerala State Assembly on Wednesday, Chief Minister V.D. Satheesan said the government had not received any application seeking approval for the proposed share transfer and first learned about the transaction through media reports.
He pointed out that Clause 5(3) of the Vizhinjam Port concession agreement requires prior approval from the State Government for any transfer of shares. Without such approval, any share transfer would have no legal validity.
Earlier this week, Adani Ports and Special Economic Zone (APSEZ) announced that it had entered into an agreement with Terminal Investment Limited (TiL), the container terminal investment arm of MSC, for the sale of a 49% stake in the Vizhinjam port operating company. The transaction remains subject to customary regulatory and statutory approvals.
The proposed investment is expected to significantly expand Vizhinjam Port’s container handling capacity from 1.6 million TEUs to 5.7 million TEUs by December 2028, strengthening the port’s position as a major transshipment hub in the Indian Ocean region.
TiL is among the world’s largest container terminal operators, managing over 100 container terminals globally with an annual handling capacity exceeding 70 million TEUs. The Adani Group and MSC are already strategic partners at Mundra Port and Kamarajar Port.
The Chief Minister also reiterated that Kerala’s port-led development strategy extends beyond Vizhinjam. He said the State would prioritise the modernisation and expansion of Azhikkal and Beypore ports, while initiatives such as the Vizhinjam Port City Project and Vision Samudra will support Kerala’s next phase of maritime infrastructure and balanced regional development, particularly in the Malabar region.
