Israel’s Haifa Port has been officially taken over by a consortium headed by India’s Adani Group, Israel’s Finance Ministry said updating on the privatization.
The privatization conclusion comes on the back of the acquisition of the necessary approvals from Israeli’s governmental bodies.
A consortium of Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group won the tender to privatize the Port of Haifa in July 2022. The consortium’s offer totals NIS 3.97 billion, equivalent to $1.15 billion, beating other 18 applicants for the port.
Under the deal, the Adani-Gadot consortium has secured the rights to buy 100% shares of Haifa Port Company Ltd, which operates the Port of Haifa. The consortium won a concession to operate the port until 2054.
Haifa is the country’s principal port for passenger traffic and cruise ships. The existing infrastructure at the port includes two container terminals and two multi-cargo terminals.
The tender win has been described by Adani as a strategic step in building stronger trade ties between India and Israel. In addition, it will help Adani expand its footprint into the European port sector, which includes the lucrative Mediterranean region.
Israel’s government gave the final green light for the privatization of the country’s biggest port back in 2020, announcing the process would be completed in two years. The decision to sell the port has been ascribed to the country’s desire to boost the port’s competitiveness and it is part of the country’s overall reform of its port sector that began in 2003.
The country’s finance ministry said that the privatization of Haifa port is one of the largest infrastructural and financial projects managed by the government of Israel over the past decade.