Adani Ports and Special Economic Zone Ltd. (APSEZ) has achieved a significant milestone in its global expansion strategy. The company, through its subsidiary Adani International Ports Holdings Pvt Ltd. (AIPH), has secured a 30-year concession agreement to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port in Tanzania.

This agreement, signed with the Tanzania Ports Authority, marks APSEZ's entry into the Tanzanian market and reflects its ambition to emerge as one of the leading port operators worldwide by 2030.

Adani Ports' recent agreement to operate and manage Container Terminal 2 (CT2) at Dar es Salaam Port in Tanzania signifies its strategic entry into a pivotal gateway port in East Africa. Renowned for its well-connected network of roadways and railways, Dar es Salaam Port holds significant importance in facilitating trade in the region. The signing of this agreement underscores Adani Ports' vision to expand its presence in key region with high growth potential.

CT2, equipped with four berths, boasts an annual cargo handling capacity of 1 million TEUs, making it a crucial hub for trade activities in East Africa. Adani Ports' involvement in this project reflects its commitment to bolstering trade infrastructure and facilitating smoother cargo movements in the region.

The formation of East Africa Gateway Ltd (EAGL) as a joint venture between Adani International Ports Holdings Pte Ltd (AIPH), AD Ports Group, and East Harbour Terminals Ltd (EHTL) further solidifies the company's presence in Tanzania. As the controlling shareholder of EAGL, Adani Ports will consolidate the joint venture on its books, consolidating its position in the East African market.

As per the statement, Container Terminal 2, featuring four berths, demonstrated an annual cargo handling capacity of 1 million twenty-foot equivalent units (TEUs) and successfully managed 0.82 million TEUs of containers in 2023. This figure represents approximately 83 percent of Tanzania's total container volumes for the year.

In 2023, Container Terminal 2 (CT2) managed 0.82 million TEUs of containers, representing around 83% of Tanzania's total container volumes. This underscores the port's crucial role in facilitating trade and economic activities within the region. Adani Ports aims to utilise its expertise and port network to bolster trade volumes and economic collaboration between its ports and East Africa.

As part of the agreement, the Adani Ports-led consortium, East Africa Gateway Ltd. (EAGL), will acquire the project company in Tanzania for USD 39.5 million. This acquisition includes all port handling equipment and employees, ensuring a smooth transition of operations. Adani Ports will consolidate EAGL on its books, 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 of becoming one of the largest port operators globally by 2030. We are confident that with our expertise and port network, we can enhance trade volumes and economic cooperation between our ports and East Africa. We are committed to transforming Dar es Salaam Port into a world-class facility," said Karan Adani, Managing Director of APSEZ, in a press release.

APSEZ, a subsidiary of the Adani Group, holds the distinction of being the largest port developer and operator in India. It operates seven strategically located ports and terminals on the west coast, along with eight ports and terminals on the east coast of India.

Additionally, APSEZ is involved in developing a transshipment port in Colombo, Sri Lanka, and owns the Haifa Port in Israel. The company's vision is to establish itself as the largest ports and logistics platform globally within the next decade.

Image source: The Hindu