Israel Sells Haifa Port for $1.2 Billion

Israel sells the major trade hub on the Mediterranean coast Haifa Port. India’s Adani Ports and local chemicals and logistics group Gadot won the bid for 4.1 billion shekels ($1.18 billion). Adani Ports will get 70% stake while Gadot will get the 30%, an official told Reuters.

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

Delighted to win the tender for privatization of the Port of Haifa in Israel with our partner Gadot. Immense strategic and historical significance for both nations! Proud to be in Haifa, where Indians led, in 1918, one of the greatest cavalry charges in military history!” said Adani Group Chairman Gautam Adani tweeted.

Due to lack of staff, COVID lockdowns, and port congestion, supply chains in different parts of the world have been hit over.

The government continually upgrades the sector to maintain economic growth since around 98% of goods go in and out of Israel by sea.

Haifa has been operating as a port for hundreds of years. It is currently the main deep water port in Israel and handled about half the country’s freight volume in 2021. It also took care of half of the freight volume last year.

Ties with Arab country neighbors are making new trade opportunities for Israel as well. Haifa’s location will help it become a regional hub, also a link between Asia and Europe.

Adani Ports targets expansion and seeks to become the leading global port group, chief executive Karan Adani, told an earnings call this year.

The new owners will have to compete with a private port operated by Shanghai International Port Group (SIPG).The new group will operate the port up until 2054 and along with containers it can also focus on general cargo and cruises, said Haifa Port.