Adani Ports Has Signed 30 Year Concession Agreement With Tanzania Ports

Adani Ports and Special Economic Zone Limited (APSEZ) is an Indian multinational port operator and logistics company, which is a part of Adani Group. APSEZ is India’s largest private port operator with a network of 12 ports and terminals, including India’s first port-based SEZ at Mundra and the first deep-water trans-shipment port at Thiruvananthapuram.

Adani Ports Signed 30-Year Concession Agreement

Adani Ports and Special Economic Zone (APSEZ) has secured a 30-year concession agreement to operate Container Terminal 2 (CT2) at the Dar es Salaam Port, this is going 

to be its third international port venture. Through a strategic partnership and acquisition, APSEZ, along with Abu Dhabi Ports Group and East Harbour Terminals Ltd, acquired Tanzania International Container Terminal Services Limited (TICTS) for $39.5 million.

About Dar es Salaam Port

Dar es Salaam Port, an important gateway in East Africa, boasts extensive road and rail connections. Adani Ports’ agreement signifies its strategic expansion into promising regions. Container Terminal 2 (CT2) with its four berths and an annual handling capacity of 1 million TEUs emerges as a pivotal trade hub in the area, enhancing regional commerce. This move highlights Adani Ports’ commitment to enhance its trade growth and connectivity in East Africa’s dynamic economic landscape. 

Incorporation of EAGL

A new joint venture, East Africa Gateway Ltd (EAGL), has been established by Adani International Ports Holdings (AIPH), AD Ports Group, and East Harbour Terminals Ltd (EHTL). Adani Ports and Special Economic Zone (APSEZ) will hold the majority stake and will consolidate EAGL’s operations in its financial records.

Conclusion: This 30-year concession agreement of Adani ports with Tanzania Ports Authority and the establishment of East Africa Gateway Ltd (EAGL), marks a significant expansion beyond Indian shores for the Adani group. These deals reflect Adani Group’s commitment to enhancing its trade connectivity in key regions like East Africa, which will solidify its position as a global player in port operations and logistics. The stock of Adani ports currently trades at Rs.1602.50 up by 11.40%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.