Indian conglomerate Adani Group announced Tuesday that shipping giant MSC will acquire a 49% stake in its deep-water transshipment port in southern India for $1.4 billion.
The purchase by Switzerland-based MSC, the world's largest container shipping company, represents the "single largest foreign private investment in Indian port infrastructure," Adani said in a statement.
The agreement comes as India seeks to develop a network of major seaports and reduce its dependence on regional transshipment hubs such as Singapore and Colombo by handling a greater share of cargo domestically.
The Adani Group said MSC would buy the stake in Adani Vizhinjam Port Private Limited, which operates the Vizhinjam International Seaport in the southern state of Kerala.
The transaction will be carried out through MSC's investment arm, Terminal Investment Limited, and remains subject to regulatory approvals.
The group said the partnership was expected to increase cargo volumes at Vizhinjam and help the port capture a larger share of Bangladesh cargo that is currently routed through other Southeast Asian hubs.
"Vizhinjam port has emerged as a premier transshipment hub and ramped up at an unprecedented pace," Adani Ports chief executive Ashwani Gupta said in the statement.
Vizhinjam is India's first dedicated deep-water container transshipment port and is designed to handle some of the large container vessels that currently bypass Indian ports.
New Delhi has outlined plans to build and expand major port infrastructure over the coming decades as it seeks to boost trade competitiveness.
