London: Adani Ports and the special economic zone said that its acquisition Haifa Port With a local Israeli partner, the company will boost trade lanes with Indian ports and could better connect Europe and the Middle East in the long term.
After two years of tender process, Adani Ports and Local Chemicals and Logistics Group Gadot Israel announced on Thursday that it had won a bid of 4.1 billion shekels ($1.18 billion) for the port of Haifa.
The Indian company said that Adani Ports will hold 70% and Gadot will hold the remaining 30%.
The country hopes that the privatization of the first government-owned port will lower import prices and help reduce the notoriously long wait times at Israel’s ports. read more
Adani Ports, the largest port developer and operator in India, said the acquisition will “expand its footprint in the European port sector, including the lucrative Mediterranean region”.
“In the short term, we look forward to developing strategic trade lanes between our ports in India and Haifa,” Karan Adani, Chief Executive Officer of Adani Ports, said in a statement.
He added that the company expects Israel to become a connection to both Europe and the Middle East in the long run.
“Therefore we stand to benefit from the new potential business lanes that will be created,” Adani said.
Shares in the India-headquartered conglomerate rose 1.9% to Rs 738.45 on Friday and were last trading 0.56% higher at Rs 728.25 at 0827 GMT.
Good relations with neighboring Arab countries are also creating new business opportunities for Israel. This means that Haifa is well-established to become a regional hub as well as a link between Asia and Europe.
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