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APSEZ along with GCTT seals the deal for Israel’s Haifa Port

APSEZ GCTT to develop haifa port
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In another successful alliance, Adani Group has won the tender for the privatisation of the state-owned Haifa Port in Israel by quoting 4.1 billion shekels (USD 1.18 billion). Adani Ports and Special Economic Zone Ltd. (APSEZ) will work in joint venture with Israel’s Gadot Chemicals Tankers and Terminal Ltd. (GCTT) for the privatisation of Haifa Port – Israel’s second largest port – while owning a 70% stake. Their joint venture will acquire a 100% stake in the Haifa Port Company.

Gautam Adani, Group Chairman of the Adani Group took to Twitter to announce the good news.

The government of Israel had said a condition that the winning bidder should invest a minimum of 1 billion shekels ($285.78 million) in Haifa Port Company’s capital. Any payment in excess of the amount of 1 billion shekels will be paid to the Israeli government for the acquisition of 10% of the company’s shares held by the state.

The privatisation of the port of Haifa will increase competition at the ports and lower the cost of living.

Avigdor Lieberman, Israel’s Finance Minister

To encourage competition while maintaining low costs, Israel has been transferring state-owned ports to private sector, keeping in view the economic growth of the country. It should be noted that most of Israel’s EXIM activity is done via sea routes, so it has become imperative for them to appropriately develop their port infra.

The Haifa Port will be competing with the Haifa New Port Terminal once it has been fully developed by the new owners. The Haifa New Port Terminal is an automated container port by the China Shanghai International Port Group (SIPG) which has been functional since Sept 2021. The greenfield port in Haifa was developed under the BOT (Build-Own-Transfer) model, on a 25-year arrangement post construction.

Haifa is Israel’s second largest port and serves as a major trade hub on the country’s Mediterranean coast. The city is Israel’s transportation and industrial centre and a key railway hub along the Mediterranean.

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