Indian billionaire Gautam Adani acquires stake in Tanzanian container terminal

Oluwatosin Racheal Alabi -

Key points:

  • Indian billionaire signed a 30-years concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 (CT2) at the Dar es Salaam Port.
  • CT2 has a capacity of 1 million TEUs and handles approximately 83% of Tanzania’s container volume.
  • Adani Ports led consortium will acquire the project company in Tanzania, which houses all port handling equipment and employees, for an amount of USD 39.5 million.

Adani Ports and Special Economic Zone Ltd (APSEZ), owned by Indian billionaire Gautam Adani, has made a major move into Tanzania. Its subsidiary, Adani International Ports Holdings Pte Ltd (AIPH), 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.

CT2, which has four berths and an annual cargo handling capacity of 1 million TEUs, managed 0.82 million TEUs of containers in 2023. This is estimated to be 83% of Tanzania’s total container volumes. The port is a gateway with a well-connected network of roadways and railways.

A joint venture, East Africa Gateway Limited (EAGL), has been incorporated by AIPH, AD Ports Group, and East Harbour Terminals Limited (EHTL). APSEZ will be the controlling shareholder and will consolidate EAGL on its books. EAGL has signed a Share Purchase Agreement for the acquisition of a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited and Harbours Investment Limited for a purchase consideration of USD 39.5 million. TICTS, which currently owns all the port handling equipment and employs the manpower, will be operated by Adani through CT2.

Karan Adani, Managing Director of APSEZ, showed his trust in their expertise and network in ports and logistics. He stated that this move aligns with APSEZ’s vision of becoming one of the largest port operators globally by 2030. He also acknowledged their commitment to enhancing trade volumes and economic cooperation between their ports and East Africa, and transforming Dar es Salaam Port into a world-class port.

“The signing of the concession for Container Terminal 2 at Dar es Salaam Port is in line with APSEZ’s ambition of becoming one of the largest port operators globally by 2030. We are confident that with our expertise and network in ports and logistics, we will be able to enhance trade volumes and economic cooperation between our ports and East Africa. We will strive to transform Dar es Salaam Port into a world class port,” he said.

Billionaires.Africa reported in February the announcement of Adani’s venture into Tanzania with the acquisition of Ticts. His achievement today shows  a strategic move that aligns with his overarching goal of becoming a major player in international logistics and port operations.