Adani bets on Bangladesh cargo with MSC deal

Switzerland-based shipping giant MSC is set to acquire a 49 per cent stake in India’s Vizhinjam International Seaport for around US$1.4 billion, a deal that could further strengthen the port’s role in handling a growing share of Bangladesh’s export cargo to Southeast Asia.

India’s Adani Group announced on Tuesday that the investment by MSC, the world’s largest container shipping company, represents the largest single foreign private investment in India’s port infrastructure sector.

The stake sale involves Adani Vizhinjam Port Private Limited, which operates the deep-sea transshipment port in Kerala. The acquisition will be made through Terminal Investment Limited (TiL), MSC’s port investment arm, and remains subject to regulatory approvals.

Adani said the partnership is expected to increase cargo volumes at Vizhinjam while enhancing the port’s capacity to serve regional trade, including a larger share of Bangladesh’s international shipments.

Vizhinjam is India’s first dedicated deep-sea container transshipment port, designed to handle ultra-large container vessels that traditionally bypass Indian ports in favour of regional hubs such as Singapore and Colombo.

The investment forms part of New Delhi’s broader strategy to develop a stronger network of major ports, reduce dependence on overseas transshipment hubs and retain a greater share of cargo handling within India.

Adani Ports Chief Executive Ashwani Gupta said the port has already established itself as a leading transshipment hub and continues to expand its operational footprint.

For Bangladesh, Vizhinjam is emerging as an increasingly attractive gateway for exports to ASEAN markets. Export containers are transported by feeder vessels from Chattogram and Mongla ports to Vizhinjam, where they are transferred onto large international mainline vessels serving destinations across Southeast Asia.

The route offers several commercial advantages. Located just 10 nautical miles from the main Suez–Far East shipping lane, Vizhinjam provides quicker access to global maritime routes than traditional transshipment centres. Industry estimates suggest the route can reduce transit times by three to ten days, while lowering logistics and feeder shipping costs through shorter sailing distances and fewer container handling operations.

The port’s deep natural draft also enables it to accommodate Ultra Large Container Vessels (ULCVs), improving operational efficiency and connectivity to international shipping networks.

Bangladesh primarily uses the route to export ready-made garments, textiles, leather goods, frozen seafood, jute products, pharmaceuticals, plastics and light engineering products. Key destinations include Malaysia, Singapore, Vietnam, Thailand, Indonesia and the Philippines.

As Bangladesh seeks to diversify export markets and improve supply-chain efficiency, Vizhinjam is positioning itself as an important alternative to Singapore and Colombo.

The combination of modern infrastructure, shorter transit times and lower logistics costs is expected to strengthen Bangladesh’s maritime connectivity with Southeast Asia while supporting the country’s expanding export trade.