Adani Ports Secures 30-Year Concession to Operate Tanzania Port Terminal

Adani Ports and Special Economic Zone (APSEZ) announced its entry into the international ports sector for the third time by taking over the operations of Container Terminal 2 at the Dar es Salaam Port in Tanzania. This move is facilitated through its subsidiary, Adani International Ports Holdings Pte Ltd. The company disclosed this development on Friday, revealing that it has signed a 30-year concession agreement with the Tanzania Ports Authority.

In a strategic move, APSEZ, India’s largest port operator, formed a joint venture last year with Abu Dhabi Ports Group and East Harbour Terminals Ltd. Through this venture, it acquired the Hong Kong-based special purpose vehicle (SPV), which operates the terminal, for $39.5 million.

The acquisition involved East Africa Gateway Ltd (EAGL) purchasing a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited and Harbours Investment Limited. TICTS, the current owner of port handling equipment and manpower, will now operate Container Terminal 2 under Adani's management.

Container Terminal 2, boasting 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, accounting for 83% of Tanzania’s total container volumes.

APSEZ highlighted that the Dar es Salaam Port serves as a crucial gateway port with a well-connected network of roadways and railways, facilitating efficient logistics operations.

The turnover of TICTS in 2023 was reported to be $43.7 million, according to APSEZ's disclosure to stock exchanges.

EAGL, formed as a joint venture between APSEZ's international ports arm, AD Ports Group, and East Harbour Terminals Limited, will see APSEZ as the controlling shareholder, consolidating EAGL on its books.

Karan Adani, Managing Director of APSEZ, expressed confidence in the venture's potential, stating, “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.”

APSEZ already operates an international port in Israel – the Haifa port – and is constructing a terminal in Sri Lanka. It had also acquired a port in Myanmar, which it eventually sold at a discount amid allegations of contributing to civil unrest in the country.

BS