East Africa Gateway Ltd., an associate company of Adani Ports and Special Economic Zone Ltd (APSEZ), has agreed to buy Tanzania International Container Terminal Services Ltd (TICTS). The deal would be – for APSEZ – its third port acquisition after Haifa Port in Israel and an under-construction container terminal in Colombo Port.

APSEZ was hired by Tanzania Ports Authority in January 2023 to run four container handling berths at Dar es Salaam Port. Before this stint, it served a five-year contract with TICTS.

TICTS, a unit of Hong Kong’s Hutchison Port Holdings Ltd., now runs a container terminal at Dar es Salaam, a major ocean port of Tanzania that handles over 90% of the country’s international cargo traffic. The port is strategically placed to serve the landlocked countries of Burundi, Congo, Malawi, Rwanda, Uganda, Zambia and Zimbabwe.

At this juncture, the formation of East Africa Gateway Ltd in the UAE brings to light many things. First, it confirms the teaming up of APSEZ with Abu Dhabi Ports Group (ADP) to acquire TICTS at Dar es Salaam Port. Second, the prospect of Tanzania turning into an African trading hub is more likely now than ever before. Third, with international companies entering African markets, Abu Dhabi will be clearly positioned as a global leader in logistics and industry.

Karan Adani, Managing Director, APSEZ, says that the partnership with Abu Dhabi Ports Group will bring about a positive change in the communities even as they continue to support local employment.

As one of the key companies fostering Abu Dhabi’s non-hydrocarbon economy and diversification, ADP has won a special status as the island capital’s exclusive developer and regulator of non-oil and gas ports.

In 2022, Fitch Ratings affirmed ADP at ‘A+’. Significantly, the same year, ADP signed a Memorandum of Understanding with APSEZ for joint infrastructure investments in Tanzania, ranging from rail and maritime operations to port operations and digital services.