Infrastructure

Adani Ports Expands Global Reach With Dar Es Salaam Terminal Agreement In Tanzania

V Bhagya Subhashini

Jun 03, 2024, 09:47 AM | Updated 11:06 AM IST

Dar es Salaam Port In Tanzania. (Source: World Bank)
Dar es Salaam Port In Tanzania. (Source: World Bank)

Adani Ports and Special Economic Zone Ltd. (APSEZ) has taken a significant step in its global expansion strategy by securing a 30-year concession agreement to operate and manage Container Terminal 2 (CT2) at Dar es Salaam Port in Tanzania.

Dar es Salaam Port is a critical gateway in East Africa, known for its extensive connectivity through road and rail networks.

As a key port supporting not only Tanzania's trade but also the trade of its landlocked neighbours — Rwanda, Burundi, Uganda, and the Democratic Republic of Congo — Dar es Salaam plays a central role in facilitating and integrating regional trade.

The agreement with the Tanzania Ports Authority is part of Adani Ports' strategic vision to expand its presence in high-growth regions. CT2, featuring four berths, boasts an annual cargo handling capacity of 1 million twenty-foot equivalent units (TEUs), positioning it as a vital hub for regional trade.

East Africa Gateway Ltd (EAGL), a joint venture comprising AIPH, AD Ports Group, and East Harbour Terminals Ltd (EHTL), has been established to oversee operations at CT2.

APSEZ will hold a controlling interest in EAGL, ensuring the consolidation of its operations on its financial books. In 2023, CT2 handled 0.82 million TEUs, accounting for approximately 83 per cent of Tanzania's total container volumes. This underscores the terminal's importance in regional trade.

As part of the agreement, the Adani Ports-led consortium will acquire the project company in Tanzania for USD 39.5 million. This acquisition includes all port handling equipment and employees, facilitating a seamless transition of operations. APSEZ will consolidate EAGL into its operations, with APSEZ as the controlling shareholder.

"The signing of the concession for Container Terminal 2 at Dar es Salaam Port aligns with APSEZ’s ambition to become one of the largest port operators globally by 2030. With our expertise and network in ports and logistics, we aim to enhance trade volumes and economic cooperation between our ports and East Africa. We will strive to transform Dar es Salaam Port into a world-class facility," stated Karan Adani, Managing Director of APSEZ, reports Economic Times.

Expanding Global Footprint

APSEZ, part of the Adani Group, is India's largest port developer and operator, managing seven ports and terminals on the west coast and eight on the east coast. Additionally, APSEZ is developing a transhipment port in Colombo, Sri Lanka, and owns Haifa Port in Israel. Currently, Adani Group also operates ports in countries such Indonesia, Australia, and has signed MOUs for various port-related activities in Vietnam, Malaysia, and the Philippines.

The company's vision is to become the world's largest port and logistics platform within the next decade.

V Bhagya Subhashini is a staff writer at Swarajya. She tracks infrastructure developments.


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