In a significant move to bolster trade routes and economic ties between the Middle East and Africa, Abu Dhabi’s AD Ports Group (site) has teamed up with Adani International Port Holding (site) and East Harbour Terminals to acquire a substantial 95% stake in Tanzania International Container Terminal Services (TICTS).
The stake, purchased from Hutchison Port Holdings for USD 39.5 million, marks a strategic investment aimed at enhancing the port’s infrastructure and operational capacity. This acquisition is expected to close by the end of June, signifying a critical step in expanding the influence of these port operators in the East African region.
Enhancing trade and infrastructure
TICTS operates the container terminal at Dar es Salaam Port, Tanzania’s largest cargo gateway, which has an annual container capacity of 1 million twenty-foot equivalent units (TEUs). Last year, the terminal handled approximately 820,000 TEUs, which accounted for 83% of Tanzania’s total container volumes. With this acquisition, AD Ports and Adani Ports aim to leverage their combined expertise to improve the terminal’s efficiency and capacity, thereby supporting Tanzania’s economic growth and competitiveness.
Mohamed Juma Al Shamisi, the managing director and group CEO of AD Ports Group, highlighted the strategic importance of this acquisition, stating, “Together, we can further explore investment opportunities within the country. As a group, we are delivering on our strategy to expand our presence in geographies relevant to our business and to the UAE economic diversification strategy.”
Adani Ports’ global ambitions
The Adani Group, India’s largest port operator, is aggressively pursuing its ambition to become the world’s largest port operator by 2030 through its port arm, Adani Ports and Special Economic Zone (APSEZ).
Karan Adani, Managing Director of APSEZ, expressed confidence in the venture, stating, “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.” This acquisition is expected to significantly boost trade volumes and strengthen economic ties between India, the UAE, and East Africa.
Broader strategic initiatives
AD Ports Group’s acquisition in Tanzania is part of a broader strategy to expand its presence in major trade regions and maritime routes. Recently, the Abu Dhabi-listed logistics firm signed a memorandum of understanding with a consortium of Egyptian companies to develop a green methanol storage and export facility. This facility aims to supply low-carbon fuel for maritime transport, presenting a significant opportunity to establish clean alternative energy storage solutions.
By investing in such strategic projects, AD Ports is not only enhancing its global trade capabilities but also supporting the UAE’s economic diversification efforts. These initiatives are crucial for positioning the UAE as a leading hub for global trade and sustainable energy solutions.
The acquisition of a majority stake in Tanzania’s International Container Terminal Services by AD Ports Group and Adani International Port Holding is a strategic move that underscores their commitment to enhancing global trade infrastructure and economic cooperation. As these port operators continue to invest in critical trade regions, they are poised to significantly impact the logistics and maritime sectors, fostering stronger economic ties between the Middle East, India, and East Africa.
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