French shipping Co to buy 26% in Adani arm

French shipping major CMA CGM is set to pick up a 26% stake in a subsidiary of Ahmedabad-based Rs 18,000-crore Adani group, making it the biggest joint venture in the country’s ports sector.

CMA CGM, which is the world’s third-largest shipping company, is close to picking up 26% equity in Adani Logistics, a 100% subsidiary of Mundra Port & SEZ. Adani Logistics is into container handling and has a Category 1 licence for running container trains across the country.

Once the deal comes through, the French shipping major will benefit from the group’s second container terminal which is coming up in Mundra. Already, Mundra International Container Terminal (MICT) is being managed by DP World under a sub-concession agreement. With a fleet of 336 vessels, the group serves over 350 ports of call on over 100 shipping routes. The company will add 64 new vessels between 2007 and 2010.

The Adanis are planning to invest close to Rs 1,100 crore for developing the second container terminal at Mundra. For more details