A consortium of Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group has won the tender to privatise the Port of Haifa, the second-largest port in Israel, stated an official release on Friday.
After bagging the tender, the Adani-Gadot consortium has secured the rights to buy 100% shares of Haifa Port Company Ltd. The concession period of the Port of Haifa is up to 2054.
“We are delighted to win the privatisation 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,” stated Karan Adani, wholetime director & CEO, APSEZ. “This win… 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,” he said.
“In the short term, we look forward to developing strategic trade lanes between our ports in India and Haifa and help facilitate trade between the two countries, diversifying the port cargo as well as leveraging our expertise to increase the operational efficiencies. Our portion of the investment is being funded through internal accruals… In the long run, this is a tremendous port as 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 added.
“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,” said Opher Linchevski, CEO of Gadot.
Haifa Port Company Ltd (HPC), for which APSEZ and Gadot made their successful bid, operates the Port of Haifa, one of the two biggest commercial ports in Israel. The port, which handles nearly half of Israel’s container cargo, is also the country’s principal port for passenger traffic and cruise ships.
With this, Adani Ports and Special Economic Zone Ltd will expand its footprint into the European port sector, which includes the lucrative Mediterranean region, the release added.