Adani-led consortium wins bid to buy Israel’s second-largest port for USD 1.18 billion
Through the winning bid, the consortium has secured the right to buy 100% shares of Haifa Port Company. The concession period of the port remains up to 2054.
Published: 16th July 2022 07:44 AM | Last Updated: 16th July 2022 08:16 AM | A+A A-
NEW DELHI: A consortium of Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group has bagged the tender to privatise Haifa port, the second-largest port in Israel, for $1.18 billion.
Through the winning bid, the consortium has secured the right to buy 100% shares of Haifa Port Company. The concession period of the port remains up to 2054. “This is one of the many steps we are taking to transform APSEZ into a global transport utility that will include logistics and warehousing,” said Karan Adani, the whole time Director & CEO at APSEZ.
“In the short term, we look forward to developing strategic trade lanes between our ports in India and Haifa and help facilitate trade between the two countries, diversifying the port cargo as well as leveraging our expertise to increase the operational efficiencies...”
“In the long run, this is a tremendous port as we anticipate Israel becoming a connection both for Europe and the Middle East, and, therefore, we stand to benefit from the new possible trade lanes that will get created,” he added.
Karan further said Adani’s portion of the investment is being funded via internal accruals. The consortium of APSEZ and Gadot will hold 70% and 30% shares, respectively. With the acquisition of Haifa, APSEZ will expand its footprint into the European port sector, which includes the lucrative Mediterranean region, the company said.
APSEZ is the largest port developer and operator in India, with 12 strategically located ports and terminals, representing 24% of the country’s port capacity.
Last year, APSEZ set up a holding company in Singapore to pursue potential port opportunities globally to achieve its 2030 vision.