Adani-Gadot Haifa Port Buyout: Here Are The Details
The Adani-Gadot consortium has offered $1.18 billion for the Haifa port.
A consortium of Adani Ports & Special Economic Zone Ltd. and Israel’s Gadot Group has won a tender to privatise Israel’s second-largest port amid stiff local and global competition.
Through the winning bid, the consortium of APSEZ and Gadot Group—formed with their respective shares of 70% and 30%—has secured the rights to buy 100% shares of Haifa Port Co., according to a company statement. It offered $1.18 billion for the bid.
The concession period of the port will be 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. Our portion of the investment is being funded through internal accruals,” Karan Adani, whole-time director and chief executive officer at APSEZ, was quoted as saying in the statement.
The company termed the deal as a “strategic win”. “It gives us a much larger presence in Israel, one of India’s most strategic partners, with whom the Adani Group has been working for six long years to build a network of relationships across several industries,” Adani said.
In the short term, the company plans to develop strategic trade lanes between ports in India and Haifa to facilitate trade between the two countries and diversify port cargo. In the long run, the company sees it as a gateway to Europe, including the Mediterranean region.
“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,” Adani said.
Opher Linchevski, CEO at Gadot, said the “length of the lease and the growth that we anticipate in the Israel economy as well as the surrounding regions means we are well positioned to invest to build one of the best ports in this region”.
Haifa Port Co. operates the Port of Haifa, one of the two biggest commercial ports in Israel. The port handles nearly half of Israel’s container cargo, and is the country’s principal port for passenger traffic and cruise ships.
Adani Ports is India’s largest port developer and operator with 12 ports and terminals, representing 24% of the country's total port capacity. The company is also developing transhipment ports at Vizhinjam, Kerala and Colombo West International Terminal in Sri Lanka.
What Haifa Port Brings
Located towards the north of Israel, adjacent to the city of Haifa and about 90 km away from Tel Aviv, the key commercial city of Israel.
The existing infrastructure at Haifa Port includes two container terminals and two multi-cargo terminals.
The total developed quay length measures more than 2,900 metres. The maximum draft available ranges from 11 metres to 16.5 metres.
Haifa Port has a roll-on roll-off, a cruise terminal with various passenger facilities and a waterfront length of 2 km for development.
During 2021, Haifa Port handled1.46 million TEUs of containers, 2.56 million tons of general and bulk cargo.
Shares of Adani Ports were trading 0.63% higher compared with 0.22% gain gain for Nifty 50 as of 1:26 p.m. on Friday.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
