UAE’s East Africa Gateway snaps up 95% stake in Tanzanian container terminal

Adani lands in Tanzanian waters: UAE-based East Africa Gateway (EAGL), a subsidiary of Indian port operator Adani Ports and Special Economic Zone (APSEZ), has signed a share purchase agreement to acquire 95% of Tanzania International Container Terminal Services (Ticts) for USD 39.5 mn from Hutchison Port Holdings and Harbors Investments, according to a statement released on Friday. The acquisition is part of a 30-year concession agreement between Adani International Ports Holdings and Tanzania Port Authority to manage and operate Container Terminal 2 at Tanzania’s Dar es Salaam Port, the statement notes.

This marks Adani’s first container terminal in Africa, and the company’s third international port acquisition. Adani purchased Israel’s Haifa Port from the government in a USD 1.15 bn transaction last year and snapped up development rights for a terminal currently being built at Sri Lanka’s Colombo Port.

Why is this important? CT2 is located at Dar es Salaam Port, a trade gateway with links to key road and railway networks. CT2 has four berths, with an annual cargo handling capacity of 1 mn TEUs. The terminal managed 0.82 mn container TEUs in 2023, which is estimated to be 83% of Tanzania's total container volumes.

EAGL has been eyeing Ticts for some time: Tanzania’s Fair Competition Commission (FCC) was reportedly investigating the feasibility of this acquisition earlier this year to ensure that it would not harm competition in the sector.

Adani is already established at the port: The Indian conglomerate runs four container and handling berths at Dar es Salaam under five-year agreements with TICTS, and inked an MoU with AD Ports in 2022 to invest in logistics infrastructure in Tanzania — including maritime services, port operations, rail infrastructure, digital services, and an industrial zone.