New Delhi: An Adani Group-led consortium in partnership with Israel's Gadot Group has won the bid to privatise the operations of Haifa Port.
The MNC has won the right to buy 100% shares of the Haifa Port Company Ltd for $1.8 billion for a concession period up to 2054. Adani Ports and Special Economic Zone Ltd (APSEZ) and Gadot Group hold 70%and 30% shares in the consortium.
Haifa is Israel's two of the biggest commercial ports and it deals with half of the country's container cargo. It is also the major spot for passenger traffic and cruise ships. Set in the third largest city in the country and 90 km from the capital Tel Aviv, the port is close to one of the major industrial areas of Israel.
Speaking about the partnership with Gadot, Karan Adani said the firm has been a reliable partner for years. "In the long run, this is a tremendous port as we anticipate Israel becoming a connection both for Europe and the Middle East. Therefore we stand to benefit from the new possible trade lanes that will get created."
He added that Adani Group is looking forward to developing strategic trade lines between ports of India and Haifa to help diversify port cargo as well as facilitate trade. Adani further said that the win is strategic because it will give the group a much larger presence in Israel. APSEZ is planning to expand to the European port sector including the Mediterranean.
Karan Adani, director and CEO of APSEZ, said the group won the bid by competing with local and global firms. He said the consortium is delighted to win the privatisation tender. "This is one of the many steps we are taking to transform APSEZ into a global transport utility that will include logistics and warehousing."
Gadot CEO Opher Linchevski echoed similar ideas and said the partnership with Adani is a blend of the best of two worlds. He noted that Gadot's expertise in handling cargo in Haifa Port and Adani's world-class capability in managing port operations are benefits of the deal.
"The length of the lease and the growth that we anticipate in the Israel economy, as well as the surrounding regions, means we are well positioned to invest to build one of the best ports in the region," he added.