AHMEDABAD/ NEW DELHI: The joint venture of Adani Ports and Special Economic Zone Limited (APSEZ) and Gadot Group had won the bid to acquire the Haifa Port, Israel’s second largest port, the Indian conglomerate said on Friday.
Through the winning bid, the Adani-Gadot consortium has secured the rights to buy 100 per cent shares of Haifa Port Company Ltd. The concession period of the Port of Haifa remains up to 2054.
“Needless to say, we are delighted to win the privatization tender of the Port of Haifa and this is one of the many steps we are taking to transform APSEZ into a global transport utility that will include logistics and warehousing,” said Karan Adani, Wholetime Director & CEO, APSEZ.
APSEZ and Gadot Group created a consortium with 70 per cent and 30 per cent ownership, respectively. The consortium made a $1.18 billion bid.
Delighted to win the tender for privatization of the Port of Haifa in Israel with our partner Gadot. Immense strategic and historical significance for both nations! Proud to be in Haifa, where Indians led, in 1918, one of the greatest cavalry charges in military history! pic.twitter.com/Bc1xbe8Olc
— Gautam Adani (@gautam_adani) July 14, 2022
Nearly half of Israel’s container freight is handled at the Haifa port, which also serves as the nation’s main port for cruise ships and passenger traffic.
“Our partnership with Adani blends the best of two worlds – our expertise in handling cargo in Haifa Port and Adani’s world-class capability in managing port operations,” said Opher Linchevski, CEO of Gadot.
APSEZ will increase its presence in the lucrative Mediterranean area and the profitable European port industry with the acquisition of the Port of Haifa.
Another port in Haifa, run by the Shanghai International Port Group and established last year, will compete with the Adani-Gadot collaboration. Both ports are positioned for profitable expansion, according to analysts, as Israel relies heavily on the sea route for the import and export of commodities.
The expansion of links between Israel and its Gulf neighbours is anticipated to have a favourable impact on the industry of port operators. New trade prospects that result from the normalization of relations are anticipated to encourage an increase in port activity.