Adani Ports signs 30-year concession pact to operate Tanzania Port Terminal
Marking its third foray into international ports, Adani Ports and Special Economic Zone (APSEZ) will operate and manage Container Terminal 2 at the Dar es Salaam Port, Tanzania, through its subsidiary Adani International Ports Holdings Pte Ltd, the company said on Friday.
The concession agreement for 30 years has been signed with the Tanzania Ports Authority.
Through a joint venture formed with Abu Dhabi Ports Group and East Harbour Terminals Ltd last year, India’s largest port operator has also bought the Hong Kong-based SPV which employs the manpower and equipment at the terminal for $39.5 million.
“East Africa Gateway Ltd (EAGL) has signed a Share Purchase Agreement for the acquisition of a 95 per cent stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited (and its affiliate Hutchison Port Investments Limited) and Harbours Investment Limited for a purchase consideration of $39.5 million. TICTS currently owns all the port handling equipment and employs the manpower. Adani will operate CT2 through TICTS,” the company’s statement read.
“CT2, with four berths, has an annual cargo handling capacity of 1 million TEUs (twenty-foot equivalent units) and managed 0.82 million TEUs of containers in 2023, estimated to be 83 per cent of Tanzania’s total container volumes,” APSEZ said in a statement.
According to APSEZ’s disclosure to stock exchanges, TICTS’ turnover in 2023 was $43.7 million.
EAGL has been incorporated as a joint venture of APSEZ’s international ports arm, AD Ports Group, and East Harbour Terminals Limited, and APSEZ will be the controlling shareholder and will consolidate EAGL on its books.
Hutchison Port Holdings was once the largest port operator in the world and currently operates port assets in over a dozen nations. It had reportedly been running the Tanzanian terminal’s operations for 22 years.
“The signing of the concession for Container Terminal 2 at Dar es Salaam Port is in line with APSEZ’s ambition of becoming one of the largest port operators globally by 2030. We are confident that with our expertise and network in ports and logistics, we will be able to enhance trade volumes and economic cooperation between our ports and East Africa. We will strive to transform Dar es Salaam Port into a world-class port,” said Karan Adani, managing director, APSEZ.
APSEZ already operates an international port in Israel – the Haifa port – and has an under-construction terminal in Sri Lanka. It had also acquired a port in Myanmar, which it eventually had to sell at a $150 million discount amid allegations of contributing to the civil unrest in the country.
First Published: May 31 2024 | 8:46 PM IST