Israel to sell Haifa Port to India’s Adani Ports, Gadot group for $1.2 billion

Israel to sell Haifa Port to India’s Adani Ports, Gadot group for $1.2 billion
July 15, 2022, 11:31 am

Haifa Port is Israel leading port in Israel. Close to 30 million tons of cargo pass through the Port each year – more than any other port in Israel - Photo. Pixabay

Israel said on Thursday (July 14) it will sell Haifa Port, a major trade hub on its Mediterranean coast, to winning bidders Adani Ports of India and local chemicals and logistics group Gadot for 4.1 billion shekels ($1.18 billion), the Alarabiya English reported, citing Reuters.

Gadot and Adani made it to the end of a two-year tender process that Israel hopes will lower import prices and help shorten notoriously long wait times at Israeli harbors.

Finance Minister Avigdor Lieberman: “The privatization of the port of Haifa will increase competition at the ports and lower the cost of living.”

Adani will have a majority 70 percent stake and Gadot will hold the remaining 30 percent, according to an industry official. Neither company was reachable for immediate comment.

Adani Ports, which has said it is the largest transport utility in India, is targeting expansion and seeks to become the premier global port group, the company’s chief executive Karan Adani, told an earnings call in May.

The history of Haifa dates back before the 3rd century BCE. Since then it has been controlled by several civilizations, including the Canaanites, Israelites, Romans, Byzantines, Arabs, Crusaders, Kurds, the Mamluks, the Ottoman Turks and the British; currently it is a major city in Israel.It is a mixed city of Jews and Arab citizens of Israel - Photo. Pixabay

The new owners will compete with a private port that opened down the bay last year, which is operated by Shanghai International Port Group (SIPG).

It is worthy to note that about 98 percent of all goods move in and out of Israel over sea and the government has been upgrading the sector to maintain economic growth.

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Warming ties with neighboring Arab countries are also creating new trade opportunities for Israel and Haifa is well placed to become a regional hub.

Haifa Port said the new group will operate the port until 2054 and that the winning bid was “higher than expected,” according to the rerpot.

Chairman Eshel Armoni: “After a complicated process, we were able to ensure Haifa Port’s future and its ability to compete in the coming years.”

Source: alarabiyaenglish

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