A potential deal with MSC will help APSEZ underwrite the volumes for the One million TEUs capacity first phase of the international container transhipment terminal at Vizhinjam. The contours of a potential deal are in the early stages with no finality on whether MSC will take an equity stake in the terminal having a berth length of 800 metres or just opt for an exclusive arrangement with APSEZ at Vizhinjam for its hub needs.
“Nothing has been finalised as yet,” the sources said, adding that an announcement on the deal could take as much as six months and is expected just ahead of the part commissioning of the terminal (400 metres quay) by March next year. The first phase of Vizhinjam Port will be fully commissioned two months later in May when another 400 metres quay will start commercial operations.
Chief Executive Officer Karan Adani said: “As of now, we are not looking to divest any equity. We have enough interest from shipping lines to make this as a hub. We are looking at more on being cost competitive in that region, that is how we are looking at it”.
Adani Vizhinjam Port Pvt Ltd has signed the concession agreement with the Kerala government for developing and operating the new port for 30 years, the port operator is free to work out an “internal arrangement” for partnering with a shipping line, Kerala government sources said.
