Adani Ports Secures 30-Year Deal to Manage Dar es Salaam Port's Container Terminal 2

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Adani International Ports Signs 30-Year Pact to Operate Dar es Salaam Port in Tanzania

Team FS

31/May/2024

Key Points:

Adani Ports signed a 30-year concession with the Tanzania Ports Authority to manage Container Terminal 2 at Dar es Salaam Port.
The move aligns with APSEZ's goal to become a leading global port operator by 2030.
A joint venture, East Africa Gateway Ltd (EAGL), will oversee the operation through the acquisition of a 95% stake in TICTS.

Adani International Ports Holdings, a wholly-owned subsidiary of Adani Ports and Special Economic Zone Ltd. (APSEZ), announced on Friday that it has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port in Tanzania. This strategic move is a significant step towards APSEZ’s goal of becoming one of the largest port operators globally by 2030.

Strategic Objectives and Vision

Karan Adani, Managing Director of APSEZ, expressed optimism about the partnership, 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." He further emphasized the potential impact, "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."

Importance of Dar es Salaam Port

The Dar es Salaam Port serves as a crucial gateway port in East Africa, with a well-connected network of roadways and railways facilitating efficient transportation and logistics. This port is vital for trade in the region, and the enhancement of its facilities is expected to significantly boost economic activities.

Joint Venture and Acquisition

To facilitate this operation, East Africa Gateway Ltd (EAGL) has been incorporated as a joint venture of Adani International Ports Holdings (AIPH), AD Ports Group, and East Harbour Terminals Ltd (EHTL). EAGL has secured an agreement to acquire a 95% stake in Tanzania International Container Terminal Services Ltd (TICTS) from Hutchison Port Holdings Ltd and its affiliate Hutchison Port Investments Ltd, as well as Harbours Investment Ltd for $39.5 million.

Operational Details

TICTS currently owns all the port handling equipment and employs the manpower required for the operations. Adani Ports will manage CT2 through TICTS, leveraging its extensive experience and resources to enhance the port’s operational efficiency and capacity.

Adani Ports' Portfolio

Adani Ports is the largest port developer and operator in India, with a strategic network of ports and terminals. The company operates 7 ports and terminals on India’s west coast and 8 on the east coast, positioning itself as a key player in the region's maritime infrastructure.

Future Prospects

This long-term agreement at Dar es Salaam Port represents a significant expansion of Adani Ports' international footprint and a major milestone in its global growth strategy. By enhancing trade volumes and economic cooperation with East Africa, Adani Ports aims to contribute to the region's economic development while solidifying its position as a leading global port operator.

Conclusion

The 30-year concession agreement for Container Terminal 2 at Dar es Salaam Port underscores Adani Ports' strategic ambitions and commitment to global expansion. With a robust network and extensive expertise, Adani Ports is poised to transform Dar es Salaam Port into a world-class facility, driving trade and economic growth in East Africa. This partnership marks a significant milestone in the company’s journey towards becoming a premier global port operator by 2030.

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