Pinarayi Vijayan flags monopoly, security concerns over proposed MSC stake in Vizhinjam Port

Thiruvananthapuram: Leader of the Opposition Pinarayi Vijayan on Wednesday urged the Kerala government to closely scrutinise the proposed acquisition of a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) by Switzerland-based Mediterranean Shipping Company (MSC), warning that the deal could create a monopoly and raise national security concerns.

Speaking in the Kerala Assembly, Vijayan welcomed Chief Minister V D Satheesan's clarification that the state had not granted any approval for the proposed transaction. However, he stressed that the proposal should be examined carefully in light of its potential implications for competition, strategic security and the state's long-term interests.

"When I saw the media reports, I wondered whether the state government was also aware of it. The Chief Minister's clarification has addressed that concern," Vijayan said.

He argued that the concession agreement governing the Vizhinjam International Seaport requires any such proposal to be assessed from the perspective of national security and public interest.

Referring to the Union government's treatment of Vizhinjam as critical infrastructure during the Pahalgam attack and Operation Sindoor, Vijayan said the strategic importance of the port meant security considerations could not be overlooked.

The Opposition leader also expressed concern over the commercial implications of the proposed deal, noting that MSC is not merely a financial investor but one of the world's largest shipping and logistics companies.

"If that shipping company also becomes a joint owner with the concessionaire, which is the port operator, then a new form of monopoly will be established here," he said.

Vijayan warned that such an arrangement could force exporters in Kerala to rely on a single company's vessels and containers, enabling it to influence freight rates and potentially discouraging competition, investment and the growth of port-based industries.

He further said the proposal could have implications for the state's long-term revenue interests, given Kerala's stake in the Vizhinjam project.

His remarks came a day after Adani Ports and Special Economic Zone (APSEZ) announced that MSC would acquire a 49 per cent stake in AVPPL, the concessionaire operating Vizhinjam Port, in a deal valued at around USD 1.4 billion.

Responding in the Assembly, Chief Minister V D Satheesan said the Kerala government had learnt of the proposed transaction through media reports and had not received any formal communication from APSEZ.

He also reiterated that, under the concession agreement, any change in ownership requires the prior approval of the Kerala government. Satheesan said the proposal would be examined on the basis of national security, public interest, competition, investment and the port's long-term development before any decision is taken.

APSEZ has described the transaction, based on a USD 2.85 billion valuation for AVPPL, as the largest foreign private investment in Indian port infrastructure, saying the partnership would strengthen Vizhinjam's position as a major transshipment hub in the Indian Ocean.