Adani Ports Stock Soars as Subsidiary Secures 30-Year Concession for Tanzania Port

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Synopsis:

Adani Ports' subsidiary secures a 30-year concession to manage Dar es Salaam Port's CT2 in Tanzania, causing the stock to rise more than 10%. The port handled 0.82 million TEUs in 2023. The $39.5 million deal aims to boost East Africa-India trade.

Adani Ports News Today

Adani International Ports Holdings Pte Limited (AIPH), a subsidiary of Adani Ports and Special Economic Zone Limited (APSEZ), announced on Friday that it had secured a 30-year concession to operate and manage Container Terminal 2 (CT2) at Dar es Salaam Port in Tanzania. 

This strategic move marks a major expansion for Adani Ports and Special Economic Zone Limited in East Africa and helped the company’s stock rise by more than 10% on June 3.

Additional Read: Adani Ports and Special Economic Zone Share Price Today

Dar es Salaam Port: Key Details

In 2023, Dar es Salaam Port managed 0.82 million twenty-foot equivalent units (TEUs) of containers, accounting for 83% of Tanzania’s total container volume. CT2, equipped with four berths, boasts an annual handling capacity of 1 million TEUs. This makes it a critical infrastructure asset in the region.

Strategic Joint Venture and Acquisition

East Africa Gateway Limited (EAGL) has been formed as a joint venture involving AIPH, AD Ports Group, and East Harbour Terminals Limited (EHTL). APSEZ will be the controlling shareholder and will consolidate EAGL in its financial statements.

As part of the agreement, EAGL will acquire a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited and Harbours Investment Limited for $39.5 million. TICTS, the current operator of CT2, will continue to manage the port's equipment and workforce under the new leadership of Adani Ports.

Additional Read: All You Need to Know About Adani Ports and Special Economic Zone

Infrastructure and Connectivity

The Dar es Salaam Port is recognized as a gateway port with a well-connected network of roadways and railways, further enhancing its strategic importance. This connectivity is expected to play a pivotal role in increasing the efficiency and volume of trade through the port.

By securing this long-term concession, Adani Ports aims to leverage CT2's capacity and strategic location to drive substantial growth in trade and economic activity in the region, solidifying its position as a key player in the global port operations industry.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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