The Gulf’s trade relations with India have been further cemented with Adani Group acquiring the Haifa Port project. The Port will prove to be Adani Ports & SEZ’s biggest revenue generator outside India, according to a well placed source. Adani Ports and SEZ will also be building an incubation centre at the port at the strategic Port, giving a boost to the start-up sectors of both the countries.
India’s largest port operator is first focussed on the city side development of the Haifa port, which would include the setting up of convention centres and hotels apart from the incubation centre. It is also working closely with local municipal bodies to make the masterplan for city side development. Adani Ports and SEZ has employed workforce of 800 at the Haifa Port including senior management and port workers.
APSEZ, in a 70:30 consortium with Israeli chemical company Gadot Group, had won the tender for privatising the port at USD 1.18 billion. It took over the port in January.
Haifa is the second largest port and one of the three major ports in Israel. Apart from operating container cargo, it is the biggest hub for tourist cruises in the region. Over the years, Haifa has become increasingly critical for Israel’s thawing political relations with Gulf states, which have led to it harbouring ambitious trade ties with the region.
Haifa port also is strategically located for transhipment of cargo through the Mediterranean Sea through the UAE to ports in Europe. It provides an alternative route to the current more expensive one that goes via the Suez Canal. The source revealed the future plans to connect Middle East to the Mediterranean (UAE to Haifa) via rail route. If the routes comes into operation, it could increase the transportation efficiency in the region by 60%
“Right now, every ship sailing through the Mediterranean has to pass through the Suez Canal. Prices keep going up. So, when the port is modernised and the railway connectivity is developed, it will reduce transit time and make an alternate gateway to Jordan, Saudi Arabia and the UAE and to Europe,” he added.
The Adani Group lost more than USD 110 billion in market value since late last month after a report from Hindenburg Research accused it of corporate fraud. APSEZ, which operates 13 ports in India and handles 24% of the country’s cargo, also lost 25% of the value.
