May 31st 2024.
Adani Ports and Special Economic Zone announced on Friday that one of their subsidiary companies has recently entered into a 30-year agreement with the Tanzania Ports Authority. This agreement grants them the rights to operate and manage a terminal at the Dar es Salaam Port, located in the East African country.
The Dar es Salaam Port is a crucial gateway port, with a well-connected network of roadways and railways. This marks a significant milestone for Adani Ports, as it marks their first venture into Tanzania. As part of the agreement, Adani International Ports Holdings Pte Ltd will acquire the project company in Tanzania, which includes all port handling equipment and employees, for a total sum of $39.5 million.
A new joint venture company, East Africa Gateway Ltd, has also been incorporated by Adani Ports, AD Ports Group, and East Harbour Terminals Ltd. Adani Ports will hold the majority share in this venture and will consolidate it on their books. Additionally, East Africa Gateway Ltd has also signed a share purchase agreement to acquire a 95% stake in Tanzania International Container Terminal Services Limited from Hutchison Port Holdings Limited and Harbours Investment Limited, for a total consideration of $39.5 million.
The statement further added that TICTS is currently responsible for all port handling equipment and employs the manpower. Adani Ports will operate the Container Terminal 2 through TICTS, which consists of four berths and has an annual capacity of handling 1 million twenty-foot equivalent units. In 2023, it managed to handle 0.82 million TEUs, accounting for about 83% of Tanzania's total container volumes.
Karan Adani, the Managing Director of APSEZ, expressed his excitement over the signing of this concession for Container Terminal 2 at Dar es Salaam Port. He also mentioned that this move is in line with their goal of becoming one of the largest port operators globally by 2030. Adani believes that their expertise and network in ports and logistics will help enhance trade volumes and economic cooperation between the ports in East Africa. They are determined to turn Dar es Salaam Port into a world-class facility.
Adani Ports, a part of the globally diversified Adani Group, is currently the largest port developer and operator in India. They have a total of 7 strategically located ports and terminals on the west coast and 8 ports and terminals on the east coast of India. This new venture into Tanzania is a significant step towards their goal of becoming a major player in the global ports industry.
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