Adani Group-led JV wins bid to privatise Israel’s Haifa Port for $1.8 billion | India Business News – Times of India
NEW DELHI: An Adani Group-led consortium in partnership with Israel’s Gadot Group will acquire the company operating country’s mega Haifa Port for $1.8 billion. They secured the rights to buy 100% shares of Haifa Port Company Ltd, for a concession period up to 2054. Located in northern Israel, Haifa is one of the country’s two biggest commercial ports that handles nearly half of Israel’s container cargo and is also a principal port for passenger traffic and cruise ships.
Adani Ports and Special Economic Zone Ltd (APSEZ) and Gadot Group hold 70%and 30% shares, respectively, in the consortium. The group says it won the tender to privatise the Port of Haifa, amidst stiff competition from local and global players.
Karan Adani, APSEZ whole time director & CEO, said: “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. This win is strategic for us from several dimensions. It 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.”
With the acquisition of the Port of Haifa, APSEZ will expand its footprint into the European port sector, which includes the lucrative Mediterranean region.
“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 and we are proud to work with Gadot as a reliable partner we have known for several years. 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 be benefit from the new possible trade lanes that will get created,” Karan Adani said.
Gadot CEO Opher Linchevski said: “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. 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.”
The Port of Haifa is located towards the north of Israel, about 90 km from Tel Aviv. It is close to the city of Haifa, the third largest city in Israel. It is also one of the major industrial areas of Israel. Haifa Port is operated by the Haifa Port Company Ltd, which also has real estate available for the development of office spaces, hotels, tourism and other recreational activities. The existing infrastructure at Haifa Port includes two container terminals and two multi-cargo terminals. The total developed quay length measures more than 2,900 metres. The maximum draft available ranges from 11 metres to 16.5 metres.
Haifa Port has a Roll-on Roll-off (RORO), a cruise terminal with various passenger facilities and a waterfront length of 2 km for development. During 2021, HPC handled 1.46 Mn TEUs of containers, 2.56 Mn tons of general and bulk cargo.
Adani Ports and Special Economic Zone Ltd (APSEZ) and Gadot Group hold 70%and 30% shares, respectively, in the consortium. The group says it won the tender to privatise the Port of Haifa, amidst stiff competition from local and global players.
Karan Adani, APSEZ whole time director & CEO, said: “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. This win is strategic for us from several dimensions. It 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.”
With the acquisition of the Port of Haifa, APSEZ will expand its footprint into the European port sector, which includes the lucrative Mediterranean region.
“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 and we are proud to work with Gadot as a reliable partner we have known for several years. 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 be benefit from the new possible trade lanes that will get created,” Karan Adani said.
Gadot CEO Opher Linchevski said: “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. 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.”
The Port of Haifa is located towards the north of Israel, about 90 km from Tel Aviv. It is close to the city of Haifa, the third largest city in Israel. It is also one of the major industrial areas of Israel. Haifa Port is operated by the Haifa Port Company Ltd, which also has real estate available for the development of office spaces, hotels, tourism and other recreational activities. The existing infrastructure at Haifa Port includes two container terminals and two multi-cargo terminals. The total developed quay length measures more than 2,900 metres. The maximum draft available ranges from 11 metres to 16.5 metres.
Haifa Port has a Roll-on Roll-off (RORO), a cruise terminal with various passenger facilities and a waterfront length of 2 km for development. During 2021, HPC handled 1.46 Mn TEUs of containers, 2.56 Mn tons of general and bulk cargo.
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