The Gulf’s trade ties with India have been strengthened with Adani Group’s acquisition of the Haifa Port project.
The Adani Group, led by billionaire Gautam Adani, acquired the strategic Israeli port for $1.2 billion last month after outbidding Chinese and Turkish companies.
The Port will prove to be Adani Ports & SEZ’s biggest revenue generator outside India. It is the largest of Israel’s three major international seaports located in the northern Israeli city of Haifa. APSEZ is also building an incubation centre at the port there which will be the biggest Start-up accelerator for the group.
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. The company has 800 employees 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 via UAE to ports in Europe. It provides an alternative route to the current more expensive one that goes via the Suez Canal.
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. but shares of the company have recovered nearly 75 per cent in recent days from the previous lows.
APSEZ operates 13 ports in India and handles 24% of the country’s cargo. Earlier this year, it became the first Indian port operator to take over a Sri Lankan port.
