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Adani Ports wins tender for privatisation of Israel’s Haifa Port – Moneycontrol

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Adani Ports on July 14 won the tender for privatisation of Israel’s Haifa Port, a major trade hub on the country’s Mediterranean coast, as per a statement issued on social media by Gautam Adani.

The bid was won by Adani Ports along with its Israeli partner Gadot, a local chemical and logistics group.

“Delighted to win the tender for privatization of the Port of Haifa in Israel with our partner Gadot. Immense strategic and historical significance for both nations (sic),” Gautam Adani, the chairman of Adani Group, tweeted.

While a statement from the Adani Group was awaited at the time of writing this report, news agency Reuters claimed that the winning bid was placed for 4.1 billion shekels ($1.18 billion).

The majority stake in the port, of 70 percent, will be held by Adani Ports, whereas, the remainder 30 percent will be owned by Gadot, the Reuters report said, citing an industry official who is privy to the development. Moneycontrol could not independently verify the same.

Also Read | Adani Ports expects 60% growth in cargo volumes to 500 MT by 2025

Haifa Port Chairman Eshel Armoni confirmed the completion of the privatisation process, adding that the new group will operate the port till the year 2054, the Reuters report said.

“After a complicated process, we were able to ensure Haifa Port’s future and its ability to compete in the coming years,” Armoni was quoted as saying.

The Adani-Gadot team will face competition from another port in Haifa, opened last year and operated by the Shanghai International Port Group (SIPG). With Israel relying largely on the sea route for the import and export of goods, both the ports are poised for profitable growth, say experts.

The business of port operators is expected to be positively affected with the improving relations between Israel and its Gulf neighbours. The normalisation of ties is likely to create new trade opportunities, which in turn would lead to a spurt in the port activities.