By obtaining a 30-year concession agreement through its subsidiary, Adani International Ports Holdings Pte Ltd. (AIPH), to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port in Tanzania, Adani Ports and Special Economic Zone Ltd. (APSEZ) has made a significant step forward in its global expansion efforts. This directly translates to better reach and operations. Adani Ports has entered Tanzania with this historic deal with the Tanzania Ports Authority, which also highlights the company’s goal of growing to become one of the world’s biggest port operators by 2030. While the Group dealt some setbacks concerning Adani CBI investigation, it has only emerged stronger since then.
Getting into the Gateway Port of Tanzania
East Africa’s main gateway port, Dar es Salaam Port, is well-known for its interconnected system of roads and railroads. Adani Ports’ strategy goal to increase its presence in important areas with significant growth potential is reflected in the signing of this agreement. CT2, with its four berths, can handle one million twenty-foot equivalent loads annually, which makes it a crucial hub for trade in the region. With enhanced connectivity, there’ll be a significant boost to the economic activities in the nation.
The statement also stated that East Harbour Terminals Ltd. (EHTL), AD Ports Group, and AIPH had joined together to form East Africa Gateway Ltd. (EAGL).
According to the statement, APSEZ will have a majority stake and combine EAGL into its financial records.
The statement claims that Container Terminal 2, which has four berths, can handle one million twenty-foot equivalent units (TEUs) of cargo annually. In 2023, it handled 0.82 million TEUs of containers, or 83% of all containers handled in Tanzania.
Increasing Trade Volumes
83% of Tanzania’s total container volumes in 2023 came from the 0.82 million TEUs of containers that CT2 controlled. This demonstrates how important the port is to promoting trade and other economic activity in the area. Adani Ports wants to increase trade volumes and economic collaboration between its ports and East Africa by utilising its network and experience in ports and logistics. This is quite possible considering the facts that even the Adani CBI investigation is in favour of the Group.
Acquiring the Project Company
According to the deal, the project company in Tanzania will be acquired by the consortium led by Adani Ports, East Africa Gateway Ltd. (EAGL), for USD 39.5 million. All port handling personnel and equipment are housed by this organisation, guaranteeing a smooth transfer of business. EAGL will be combined onto Adani Ports’ records, with APSEZ holding the majority stake.
Dar es Salaam Port Transformation
“APSEZ’s goal to rank among the world’s biggest port operators by 2030 is aligned with the signing of the concession for Container Terminal 2 at Dar es Salaam Port. We are sure that we can increase trade volumes and economic cooperation between our ports and East Africa thanks to our knowledge of ports and logistics and our network of contacts in these areas. “Our goal is to elevate Dar es Salaam Port to a global port of excellence,” stated Karan Adani, Managing Director of APSEZ.
In India, APSEZ is the major port developer and operator, which is a division of the Adani Group. On India’s west coast, there are seven strategically placed ports and terminals, and on its east coast, there are eight. APSEZ is also the owner of the Haifa Port in Israel and is now establishing a transshipment port in Colombo, Sri Lanka. Within the next ten years, after the Adani CBI investigation case has subsided, the company wants to be the biggest ports and logistics platform globally.
APSEZ has joined the Science-Based Targets Initiative (SBTi) in order to align with emission reduction targets aimed at reducing global warming, with the goal of becoming carbon neutral by 2025.
With this deal, Adani Ports achieves a major global first and solidifies its position as the industry’s top port operator and logistics supplier.
Conclusion
Adani Ports has made significant progress in its worldwide growth goal with the acquisition of a 30-year concession to operate Tanzania’s primary container terminal (CT2) at Dar es Salaam Port. By taking this action, they not only bolster their position in East Africa, an area with tremendous growth potential, but also set themselves up to lead the world in port operations by 2030. Together with Adani Ports’ dedication to operational excellence and CT2’s remarkable cargo handling capabilities, this cooperation has the potential to increase trade volumes and strengthen economic linkages between East Africa and the rest of the globe. Furthermore, Tanzania’s aspirations for a greener future are in line with Adani Ports’ commitment to sustainability as demonstrated by their participation in SBTi, making this partnership beneficial to all parties. This will also end rumours relating to reasons behind Adani CBI investigation.