Mediterranean Shipping Company (MSC), the world’s largest container shipping line, has received security clearance from the Union government to take full ownership and management control of Dakshin Bharat Gateway Terminal Pvt Ltd (DBGT), the container terminal at the state-owned VOC Port in Tamil Nadu.
Following the clearance, VOC Port Authority has approved the change in shareholding and management control of DBGT, ending a more than three-year delay in MSC’s takeover of the facility.
DBGT, which has an annual capacity of 7.2 lakh TEUs, came under MSC’s control after its December 2022 acquisition of Bolloré Africa Logistics. The global deal included 21 ports and terminals, including DBGT, but the Indian terminal’s ownership transfer was held up pending mandatory security clearance.
DBGT is now 100% owned by India Ports and Logistics Ltd, which is fully owned by MSC. The shipping major has also taken over operations of the terminal.
The development has also ended a legal dispute over the terminal’s revenue-sharing arrangement. MSC had challenged the contractual revenue share payable to VOC Port Authority, seeking its reduction from 55.19% to 45%, citing higher project costs caused by restrictions on the purchase and installation of Chinese-made container-handling equipment.
MSC has since withdrawn the case. The 55.19% revenue-share commitment was the highest ever offered in a port-sector PPP project and, according to the source, a reduction could have resulted in a revenue loss of around ₹300 crore for VOC Port Authority.
DBGT is currently operating at more than 100% capacity, with no available vessel slots, highlighting strong demand for the facility.