Thiruvananthapuram: The concern that Vizhinjam port will turn into a monopoly of Mediterranean Shipping Company (MSC) due to the company’s Rs 13,000-crore investment is misplaced because the port will remain a common utility like Adani Ennore Port.MSC Group’s subsidiary Terminal Investment Ltd (TIL) bought a 49% stake in Adani Ennore Container Terminal almost four years ago. But the port regularly receives ships from other companies, including CMA CGM and Maersk. TIL has also invested in Mundra Port.An Adani port official said that MSC Group’s TIL will not get an exclusive terminal at Vizhinjam port but will receive a share in the revenue because of its investment. The executives of TIL will also sit on the board of Adani Vizhinjam Port Pvt Ltd.However, Adani Ports has tied up with the biggest shipping company, MSC, for business viability as it carries most of the container cargo to the country.Though it was Maersk’s San Fernando that docked for the first time at Vizhinjam on July 11, 2024 as part of the start of trial, the port has since primarily serviced MSC Group’s ships. But that does not mean there is a restriction for ships belonging to other companies to dock at Vizhinjam.“Shipping is a highly competitive business and arrival of ships of other shipping lines is based on availability of business to a particular port,” said another official.Through the investment of Rs 13,000 crore for 49% of the shares in Vizhinjam port, Adani Ports plans to make the most of MSC’s strength and network in shipping. It will help Adani Ports achieve growth targets quickly through increased cargo movement, secure a larger share of Bangladeshi cargo that currently depends on Southeast Asian transshipment hubs, strengthen presence along East African trade routes, and expand relay cargo volumes.TIL is one of the world’s largest container terminal operators and has more than 100 container terminals across five continents and an annual cargo-handling capacity of more than 70 million TEUs.The Vizhinjam port, which began operations in Dec 2024, has a current capacity of 1.6 million TEUs. It is set to expand to 5.7 million TEUs by Dec 2028.
