Adani Ports and Special Economic Zone Ltd (APSEZ) on Friday announced that it has entered into a second strategic partnership with Terminal Investment Limited (TiL), the container terminal operating and investing arm of MSC, for the operation of Adani Ennore Container Terminal Pvt Ltd (AECTPL). This second joint venture builds on the success of the 2013 joint venture with TiL for Adani International Container Terminal Pvt Ltd (AICTPL), which operates CT3 Container Terminal at Mundra Port, the company said in a regulatory filing.
“APSEZ enjoys a strong partnership with TiL and MSC, built on mutual trust and transparency, as reflected in our growing alliance. With this second joint venture, we are now further deepening this strategic partnership in one of the fastest growing container terminal markets in the south. We aim to replicate the AICTPL terminal’s success at the Ennore Container Terminal and service the trade needs of the South Indian market,” said Karan Adani, CEO and Whole Time Director of APSEZ.
Terminal Investment Ltd, through its fully owned subsidiary Mundi Ltd, will acquire a 49 per cent shareholding of AECTPL from APSEZ for a consideration of Rs 247 crore. The total enterprise value of AECTPL is Rs 1,211 crore, it stated. After the completion of the transaction, APSEZ would hold 51 per cent stake in AECTPL.
Located on India’s east coast, AECTPL has a quay length of 400 meters and an annual handling capacity of 0.8 Mn TEUs. The terminal handled 0.55 Mn TEUs in FY23 and 0.45 Mn TEUs in the initial eight months of the current fiscal year. The concession period of the terminal is until 2044, and its annual capacity can be extended to 1.4 Mn TEUs.