Adani Ports to Invest Rs 100 Billion in Southern India's Transshipment Hub, Says Report

Adani Ports and Special Economic Zone Ltd. is planning to increase its investment to Rs 100 billion ($1.2 billion) for its transshipment port project in southern India. This is largely being done to attract some of the largest ships globally.

As per a report by Bloomberg, Adani Group's investment in the Vizhinjam port in Kerala is part of the project's second phase, slated for completion by 2028. Sources cited in the report also mentioned that Adani is courting major container lines like MSC Mediterranean Shipping Co., A.P. Moller-Maersk A/S and Hapag-Lloyd to dock at the port.

At 9:40 am, the shares of Adani Ports and SEZ were trading at Rs 1,487 price level, up by nearly 0.27 per cent on the National Stock Exchange.

Located near the southernmost tip of India the Vizhinjam port is very close to international shipping routes. The port will receive its first container vessel from Maersk this month as part of a trial run at the 800-meter container berth.

The Vizhinjam port is part of the Adani-led conglomerate's efforts to position India as a key destination for the world’s largest container ships and capture a larger share of the international maritime trade, which is currently dominated by China. Until now, these large vessels have bypassed India due to its insufficient harbors, opting instead for ports in Colombo, Dubai and Singapore.

As per the report, the investment will be allocated towards extending the length of the current berth and expanding the breakwater at the port. A breakwater is a structure built into the sea to shield a harbor from wave impact.

On year-to-date basis, the shares of Adani's logistics and port-arm have delivered a return of more than 40 per cent on the National Stock Exchange.