Adani and Gadot win tender to privatise Israel’s Haifa Port
16 July, 2022 | Pravina Srivastava
Adani-Gadot group has obtained the right to acquire all of the shares of Haifa Port Company Ltd. through the successful offer.
In the face of fierce competition from domestic and international competitors, a partnership made up of Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group has been selected to privatise the Port of Haifa, the country’s second-largest port. The Adani-Gadot group has obtained the right to acquire all of the shares of Haifa Port Company Ltd. through the successful offer. The Port of Haifa is still under concession until 2054.
“It goes without saying that we are thrilled to have won the Port of Haifa privatisation tender. This is just one of the many steps we are taking to transform APSEZ into a global transportation utility that will also include logistics and warehousing”, stated Mr. Karan Adani, Wholetime Director & CEO, APSEZ.
Adding further Mr. Karan Adani stated, “This victory serves a number of strategic purposes for us. It provides us a significantly stronger footprint in Israel, one of India’s most important strategic partners, with whom the Adani Group has been establishing partnerships across several industries over the past six long years. We anticipate creating strategic trade routes between our ports in India and Haifa in the near future to enhance commerce between the two nations, diversify port cargo, and use our knowledge to improve operational effectiveness. Internal accruals are being used to pay for our share of the investment, and we are pleased to collaborate with Gadot as a dependable partner we have known for many years. Long-term, this is a fantastic port because we expect Israel to become a link between Europe and the Middle East, and we stand to gain from the new potential trade lanes that are developed as a result.”
Mr. Opher Linchevski, CEO of Gadot said, “Our relationship with Adani merges the best of two worlds – our expertise in handling cargo in Haifa Port and Adani’s world-class capacity in managing port operations. “
“We are well positioned to invest to develop one of the top ports in this region. The duration of the lease and the growth that we foresee in the Israeli economy as well as the neighbouring regions” company said.
The Port of Haifa, one of Israel’s two largest commercial ports, is operated by Haifa Port Company Ltd (HPC), for which APSEZ and Gadot submitted their winning proposal. The port, which manages about half of Israel’s container freight, also serves as the nation’s main port for cruise ships and passenger traffic.
APSEZ and Gadot Group created a consortium with 70 percent and 30 percent ownership, respectively. The partnership offered NIS 4.1 billion, or USD 1.18 billion.
Adani Ports and Special Economic Zone Ltd will increase its presence in the lucrative Mediterranean area and the European port industry with the acquisition of the Port of Haifa.
Israel’s Port of Haifa is situated in the country’s northern region. It is not far from Haifa, Israel’s third-largest city. Additionally, it is a significant industrial hub for Israel. The Haifa Port Company Ltd., which also has land suitable for the development of office buildings, hotels, tourism, and other leisure activities, runs the Haifa Port.