Adani Ports secures 30-year concession at Dar es Salaam Port, expanding global reach
Adani International Ports Holdings Pte Ltd. (AIPH), a subsidiary of Adani Ports and Special Economic Zone Ltd. (APSEZ), has signed a 30-year concession agreement to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port in Tanzania. This strategic move is part of APSEZ’s broader ambition to become one of the world’s largest port operators by 2030.
Strategic Acquisition and Expansion
The concession agreement was officially approved by the Tanzania Ports Authority, positioning Dar es Salaam Port as a key gateway with its well-connected network of roadways and railways. CT2, boasting four berths with an annual cargo handling capacity of 1 million TEUs, managed 0.82 million TEUs in 2023, accounting for approximately 83% of Tanzania’s total container volumes.
Formation of East Africa Gateway Limited
To streamline operations and management at CT2, East Africa Gateway Limited (EAGL) has been formed as a joint venture among AIPH, AD Ports Group, and East Harbour Terminals Limited (EHTL). APSEZ will hold the controlling stake in this venture and will consolidate EAGL on its financial books.
Adani Ports expands its global footprint with a 30-year concession at Dar es Salaam Port, aiming to transform it into a world-class hub for trade in East Africa.
Acquisition of Tanzania International Container Terminal Services
Further enhancing its operational footprint, EAGL has acquired a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited and its affiliates for $39.5 million. This acquisition includes all port handling equipment and the existing workforce, ensuring a smooth transition and continued operational excellence.
Leadership Commentary
Karan Adani, Managing Director of APSEZ, commented on the acquisition: “The signing of the concession for Container Terminal 2 at Dar es Salaam Port is in line with APSEZ’s ambition of becoming one of the largest port operators globally by 2030. We are confident that with our expertise and network in ports and logistics, we will be able 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 port.”
Future Prospects and Economic Impact
The strategic location of the Dar es Salaam Port, coupled with the operational and technological expertise of Adani Ports, is expected to significantly boost the regional economy and enhance trade routes in East Africa. The investment in Tanzania also underscores APSEZ’s commitment to developing world-class port infrastructure that supports sustainable economic growth.