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Adani Ports in Partnership with UAE’s AD Ports Secure 30-Year Concession to Operate Container Terminal 2 at Dar es Salaam Port

In the announcement, Adani Ports stated that a new company, East Africa Gateway Limited (EAGL), has been formed. This joint venture includes Adani International Ports Holdings (AIPH), UAE firm AD Ports Group, and East Harbour Terminals Limited (EHTL).

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Adani International Ports Holdings (AIPH) said it has signed a 30-year concession agreement to operate Container Terminal 2 (Berths Number 8 to 11) at the Dar es Salaam port.

In its announcement on May 31,2024, Adani Ports stated that a new company, East Africa Gateway Limited (EAGL), has been formed. This joint venture includes Adani International Ports Holdings (AIPH), UAE firm AD Ports Group, and East Harbour Terminals Limited (EHTL).

The new company has also acquired 95 percent of the shares from Tanzania International Container Terminal Services Limited (TICTS) for USD 39.5 million. TICTS own key installations at the Dar es Salaam port as it had operated Container Terminal 2 for twenty-two years before Tanzania decided not to renew the contract in 2023.

The partnership between Adani Ports and AD Ports Group originates from an MOU signed on August 4, 2022. The MOU outlines strategic joint investments in end-to-end logistics infrastructure and solutions, including rail, maritime services, port operations, digital services, an industrial zone, and the establishment of maritime academies in Tanzania.

This announcement comes seven months after Tanzania signed an agreement with another UAE firm DP World for the lease and operation of berths 4-7 and the joint operation of berths 0-3 between Tanzania Ports Authority (TPA) and DP World for commercial and governmental activities.

READ MORE: Tanzania Proceeds With Port Deal As It Inks Three Deals With DP World

The DP World agreement had endured significant criticism over its parent agreement the Tanzania-Dubai intergovernmental agreement, with stakeholders expressing concerns over the lack of competition and ‘unfavorable terms’.

Tanzania has maintained that it intends to make its port a logistic hub of the region. Following the end of the TICTS contract, Tanzania hired Adani on a contractual basis in January 2023.

However, in July 2023, several Indian media reported that Adani was set to acquire the Tanzania port operation following a bid submitted together with AD Group. Subsequently, on August 31, 2023, the Tanzania Port Authority announced an invitation for proposals from companies to operate Container Terminal 2, with a two-week submission window.

READ MORE: Unravelling the DP World Deal – The Anatomy of the Scandal

With the new announced deal, the Managing Director of Adani Ports, Karani Adani, expressed the company’s commitment to transforming Dar es Salaam port into a world-class port. “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,” said Mr. Adani.

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One Response

  1. What I still don’t understand is whether this agreement is part and parcel of the IGA signed between Tanzania the Emirates of Dubai in what is famously known in the IGA as HGA??. Another question is about how this investor was obtained in the first place!!!?……how transparent and open was the procurement process??

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