Adani International Ports, a subsidiary of Adani Ports and Special Economic Zone Ltd. (APSEZ), has made a significant move in Tanzania’s port sector by securing a 30-year concession to operate Container Terminal 2 (CT2) at Dar-es- Salaam Port. This strategic decision highlights APSEZ’s dedication to global expansion and its desire to maintain leadership in the port and logistics industry.
A Gateway to East Africa: CT2 is comprised of four berths and has an impressive annual cargo handling capacity of 1 million TEUs (Twenty-foot Equivalent Units). It serves as a vital gateway with well-established road and rail networks. The terminal played a crucial role in handling Tanzania’s container volumes, accounting for 83% in 2023, with a total of 0.82 million TEUs.
An Alliance for Smooth Operations: To ensure seamless operations at CT2, a joint venture named East Africa Gateway Limited (EAGL) has been established. EAGL involves Adani International Ports, AD Ports Group, and East Harbour Terminals Limited. With APSEZ as the controlling shareholder, EAGL will consolidate operations under APSEZ’s financial statements. This alliance will leverage the expertise and resources of all the partners involved, contributing to enhanced efficiency and effectiveness.
Expansion through Acquisition: As part of their expansion plan, EAGL has also entered into a Share Purchase Agreement with Hutchison Port Holdings Limited. The agreement allows EAGL to acquire a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) for $39.5 million. This acquisition includes ownership of port handling equipment and manpower, making TICTS the operational arm of Adani at CT2. This strategic move will contribute to streamlining operations and ensuring a smooth transition for Adani’s entry into the Tanzanian market.
Aiming for World-Class Status: Karan Adani, the Managing Director of APSEZ, expressed confidence in the company’s ability to enhance trade volumes and promote economic cooperation between ports in East Africa. Adani’s goal is to transform Dar-es- Salaam Port into a world-class facility. This move confirms APSEZ’s firm commitment to achieving global expansion and maintaining their position as a leader in the port and logistics sector. In conclusion, Adani International Ports has made a significant stride in Tanzania’s port sector by securing a long-term concession to operate CT2 at Dar-es- Salaam Port. This move aligns with Adani’s global expansion strategy and their leadership focus in the port and logistics industry. With the establishment of EAGL and the acquisition of a stake in TICTS, Adani aims to strengthen their operational capabilities and transform Dar-es- Salaam Port into a world-class facility.
