Adani Ports and Special Economic Zone Limited (APSEZ) has taken a significant step in its global expansion plan by securing a thirty-year concession agreement to operate and manage Container Terminal 2 (CT2) at Dar es Salaam Port in Tanzania.
Dar es Salaam Port is a key meeting point in East Africa via road and rail networks.
Dar es Salaam is a major trade port in Tanzania and supports trade with Rwanda, Burundi, Uganda, and the Democratic Republic of Congo. It is also important in facilitating 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, which has four berths, has an annual cargo handling capacity of one million Twenty-Foot Equivalent Units (TEU), making it an important hub for regional trade.
East Africa Gateway Limited (EAGL), jointly formed by AIPH, AD Ports Group, and East Harbour Terminals Limited (EHTL), has been set up to oversee operations at CT2.
APSEZ will hold a controlling stake in EAGL, consolidating its operations in the financial accounts. In 2023, CT2 handled 0.82 million TEUs, representing approximately 83% of Tanzania’s total container capacity, highlighting the terminal’s importance in regional trade.
As per the agreement, the Adani Ports-led consortium will acquire the project company in Tanzania for $39.5 million. The acquisition includes all port handling equipment and staff, making the transition possible. APSEZ will consolidate EGL into its holdings, with APSEZ being 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,” said Karan Adani, Managing Director of APSEZ, reports Economic Times.
Adani Ports Expanding Global Footprint
APSEZ, a part of the Adani Group, is India’s largest port developer and operator, managing eight terminals on India’s east coast and seven ports on the west coast. Also, APSEZ is building a Haifa port and a transshipment port in Colombo, Sri Lanka. Currently, the Adani Group operates ports in countries such as Indonesia, and Australia and has signed several port-related deals in Vietnam, Malaysia, and the Philippines.
The company aims to become the world’s largest logistics platform and port within the next ten years.
