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Adani Ports of India Secures Concession for Container Terminal 2 at Dar es Salaam Port

June 4, 2024
2 minute read
Dar es Salaam Port

Adani Ports and Special Economic Zone Ltd. (APSEZ), announced on 31st May 2024 that its subsidiary Adani International Ports Holdings Pte Ltd. (AIPH) has signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and manage Container Terminal 2 at the Dar es Salaam Port.

Container Terminal 2, featuring four berths, boasts an annual cargo handling capacity of 1 million TEUs. In 2023, it managed 0.82 million TEUs of containers, which represents 83% of Tanzania’s total container volumes.

“The signing of the concession for Container Terminal 2 at Dar es Salaam Port aligns with APSEZ’s vision to become one of the largest port operators globally by 2030. With our extensive expertise and network in ports and logistics, we are poised to enhance trade volumes and foster economic cooperation between our ports and East Africa. Our goal is to transform Dar es Salaam Port into a world-class port,” said Mr. Karan Adani, Managing Director of APSEZ.

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This concession marks the entry of Adani Tanzania, which has recently announced the formation of a joint venture – East Africa Gateway Limited (EAGL) – with 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 to acquire a 95% stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited (and its affiliate Hutchison Port Investments Limited) and Harbours Investment Limited for a purchase consideration of USD 39.5 million.

TICTS currently owns all the port handling equipment and employs the manpower. Adani will operate Container Terminal 2 through TICTS.

APSEZ is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country.

Dar es Salaam port is Tanzania’s principal port with a rated capacity of 14.1 million (MT) of dry cargo and 6.0 million (MT) of bulk liquid cargo.

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