Shares of Adani Ports and Special Economic Zone skyrocketed 12% and hit a 52-week high of Rs 1,621.40 on 3 June after the company’s wholly-owned subsidiary Adani International Ports Holdings Pte Ltd (AIPH) announced the signing of a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port in Tanzania.

The company, in a statement, said that the Dar es Salaam Port is a gateway port with an extensive road and railroad network.

Hutchison Port Holdings Limited (and its affiliate Hutchison Port Investments Limited) and Harbours Investment Limited have agreed to sell East Africa Gateway Ltd (EAGL) a 95% share in Tanzania International Container Terminal Services Limited (TICTS) in exchange for a $39.5 million purchase consideration.

The company added, “TICTS currently owns all the port handling equipment and employs the manpower. Adani will operate CT2 through TICTS,”

EAGL has been incorporated as a joint venture of AIPH, AD Ports Group, and East Harbour Terminals Ltd (EHTL), 

As per the announcement, ASPEZ is expected to hold a majority ownership and include EAGL in its financial documentation.

With its four berths, CT2 can accommodate up to twenty-foot equivalent units, or TEUs, per year. APSEZ’s regulatory filing states that in 2023, it handled 0.82 million TEUs of containers or 83% of Tanzania’s total container volumes.

Karan Adani, Managing Director of APSEZ, said, “The signing of the concession for Container Terminal 2 at Dar es Salaam Port is in line with APSEZ’s ambition of becoming one of the largest port operators globally by 2030.”

At 12:52 pm, the shares of Adani Ports were trading 10.42% higher at Rs 1,587.20 on NSE.