INDIA's Adani Group in partnership with an Israeli chemical and logistics company, Gadot Group, have been selected by the Israeli government to privatise the Haifa Port Group which operates one of the largest container and cargo terminals in the country.
The Israeli government selected the winning bid of ILS4.1 billion (US$1.18 billion) from group, which will be 70 per cent controlled by Adani. The concession runs to 2054, reports Fort Lauderdale's The Maritime Executive.
The winning bid came in ILS1 billion above the government's high-end estimate of ILS3 billion ($865 million) for the contract. In addition, the government stipulated in the tender process that the investors should spend at least ILS1 billion (approximately $288 million) on the modernisation and expansion of the Haifa Port Company's operations.
The nearly two-year process had drawn interest from many of the leading port companies and is being promoted both as an attempt to lower costs and wait times while also countering a Chinese developed terminal at Haifa.
''This is good news for Israel's citizens,'' said Avigdor Liberman, Minister of Finance. ''Privatisation of Haifa port will strengthen competition between the ports and bring down the cost of living. We will continue to lead a responsible policy of a free economy, which will boost the Israeli economy.''
The Israeli government announced plans to privatise the existing port operations in Haifa in January 2020, two years after awarding another contract to China's Shanghai International Port Group (SIPG). The controversial deal with the Chinese saw the construction of Israel's first new terminal in years, which officially opened in September 2021. In the first phase of SIPG's project, they created capacity for 1 million TEU annually with plans for an additional 800,000 TEU of capacity in a second phase.
The port of Haifa is Israel's second largest port handling nearly half of all of Israel's containerised cargo. In 2021, Haifa Port Company reported handling nearly 1.5 million TEU and more than 2.5 million tonnes of bulk cargo. Haifa Port also operates one of the largest passenger and cruise terminals in the country.
Privatisation of the operation is part of the government's ongoing strategy to increase competition in the ports. Eilat Port was privatised in 2013. Currently, another new port operation at Ashdod is being developed by Swiss-based Terminal Investment Limited, a subsidiary of MSC Group, and is expected to open before the end of the year.
Winning the concession at Haifa is also a major step for India's Adani Group, which currently operates 11 domestic ports in six Indian states. Last year, the company announced plans to expand internationally. Management emphasised the strategic importance of the win in Israel as the company's entry into Europe in what the company called ''the lucrative Mediterranean region.''
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The Israeli government selected the winning bid of ILS4.1 billion (US$1.18 billion) from group, which will be 70 per cent controlled by Adani. The concession runs to 2054, reports Fort Lauderdale's The Maritime Executive.
The winning bid came in ILS1 billion above the government's high-end estimate of ILS3 billion ($865 million) for the contract. In addition, the government stipulated in the tender process that the investors should spend at least ILS1 billion (approximately $288 million) on the modernisation and expansion of the Haifa Port Company's operations.
The nearly two-year process had drawn interest from many of the leading port companies and is being promoted both as an attempt to lower costs and wait times while also countering a Chinese developed terminal at Haifa.
''This is good news for Israel's citizens,'' said Avigdor Liberman, Minister of Finance. ''Privatisation of Haifa port will strengthen competition between the ports and bring down the cost of living. We will continue to lead a responsible policy of a free economy, which will boost the Israeli economy.''
The Israeli government announced plans to privatise the existing port operations in Haifa in January 2020, two years after awarding another contract to China's Shanghai International Port Group (SIPG). The controversial deal with the Chinese saw the construction of Israel's first new terminal in years, which officially opened in September 2021. In the first phase of SIPG's project, they created capacity for 1 million TEU annually with plans for an additional 800,000 TEU of capacity in a second phase.
The port of Haifa is Israel's second largest port handling nearly half of all of Israel's containerised cargo. In 2021, Haifa Port Company reported handling nearly 1.5 million TEU and more than 2.5 million tonnes of bulk cargo. Haifa Port also operates one of the largest passenger and cruise terminals in the country.
Privatisation of the operation is part of the government's ongoing strategy to increase competition in the ports. Eilat Port was privatised in 2013. Currently, another new port operation at Ashdod is being developed by Swiss-based Terminal Investment Limited, a subsidiary of MSC Group, and is expected to open before the end of the year.
Winning the concession at Haifa is also a major step for India's Adani Group, which currently operates 11 domestic ports in six Indian states. Last year, the company announced plans to expand internationally. Management emphasised the strategic importance of the win in Israel as the company's entry into Europe in what the company called ''the lucrative Mediterranean region.''
SeaNews Turkey
