In a landmark move, Adani International Ports Holdings Pte Ltd. (AIPH), a wholly owned subsidiary of Adani Ports and Special Economic Zone Ltd. (APSEZ), has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port in Tanzania. This strategic partnership marks the entry of Adani Ports into the Tanzanian maritime sector, promising significant enhancements in cargo handling and operational efficiency.
CT2, a pivotal facility in Tanzania’s maritime infrastructure, boasts an annual cargo handling capacity of 1 million Twenty-foot Equivalent Units (TEUs) and managed approximately 0.82 million TEUs in 2023. This volume accounts for an estimated 83% of Tanzania’s total container throughput, underscoring the terminal’s critical role in the country’s trade logistics. The terminal, equipped with four berths, stands as a testament to the modern capabilities required to meet the increasing demands of global maritime shipping.
Dar es Salaam Port, often referred to as a gateway port, is renowned for its robust connectivity through an extensive network of roadways and railways, facilitating seamless inland transportation. This connectivity is essential for supporting the economic activities not only within Tanzania but also in the landlocked countries of East Africa, providing them with access to international markets.
The operational management of CT2 will be handled by East Africa Gateway Limited (EAGL), a newly formed joint venture comprising AIPH, AD Ports Group, and East Harbour Terminals Limited (EHTL). APSEZ will hold the controlling share in this venture, ensuring that it will consolidate EAGL into its financial statements. This consortium’s collaboration highlights a commitment to leveraging combined expertise and resources to elevate the terminal’s operational standards.
As part of the agreement, EAGL has entered into a Share Purchase Agreement to acquire a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited and its affiliate, Hutchison Port Investments Limited, along with Harbours Investment Limited. The acquisition, valued at USD 39.5 million, includes the procurement of all port handling equipment and the employment of the current workforce. This strategic acquisition enables Adani to effectively manage CT2 through TICTS, ensuring a smooth transition and continuity in operations.
The signing of this concession agreement on May 31, 2024, signifies a monumental step in Adani Ports’ expansion strategy, reinforcing its presence in Africa. The company’s foray into Tanzania is anticipated to bring about significant improvements in port efficiency, infrastructure development, and overall economic growth for the region. With this venture, Adani Ports is poised to contribute to the modernization of Tanzania’s maritime sector, bolstering its capabilities to meet the future demands of international trade.