Adani Acquires 95% Stake in Tanzanian Container Terminal at Dar es Salaam Port

Adani International Ports Holdings Pte Ltd (AIPH), a subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ), has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.

The agreement, finalized on May 31, 2024, involves AIPH acquiring a 95% stake in Tanzania International Container Terminal Services Ltd (TICTS) through its joint venture, East Africa Gateway Ltd (EAGL). The joint venture was formed in collaboration with AD Ports Group and East Harbour Terminals Limited (EHTL). The acquisition deal is valued at $39.5 million.

This acquisition has significant implications for global trade and economic cooperation between India and East Africa. It could lead to increased trade volumes and economic growth in the region, which would also enhance competitiveness for Adani Ports and Special Economic Zone Ltd.

Container Terminal 2, which has an annual cargo handling capacity of 1 million twenty-foot equivalent units (TEUs), managed approximately 0.82 million TEUs in 2023, accounting for 83% of Tanzania's total container volumes. TICTS owns all the port handling equipment and employs the manpower necessary for operations.

Karan Adani, Managing Director of APSEZ, expressed optimism about the venture, 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."

The Dar es Salaam Port is a vital gateway port with a well-connected network of roadways and railways, making it a strategic location for trade and commerce. The acquisition marks a significant expansion of APSEZ's presence in the African continent.

APSEZ, the largest port developer and operator in India, has evolved from a port company to an Integrated Transport Utility providing end-to-end solutions from its port gate to the customer gate. The company operates seven ports and terminals on the west coast and eight on the east coast of India, representing 27% of the country's total port volumes.

This acquisition aligns with APSEZ's strategic goals and positions it to leverage its expertise in ports and logistics to enhance trade volumes and economic cooperation between its ports and East Africa.

Key Takeaways

• Adani International Ports Holdings signs 30-year concession to operate Dar es Salaam Port's Container Terminal 2.
• AIPH acquires 95% stake in Tanzania International Container Terminal Services Ltd for $39.5 million.
• Container Terminal 2 has an annual cargo handling capacity of 1 million TEUs, accounting for 83% of Tanzania's container volumes.
• The acquisition marks APSEZ's expansion into Africa and aligns with its goal to become one of the largest port operators globally by 2030.
• The deal is expected to increase trade volumes and economic growth in the region, enhancing APSEZ's competitiveness.