Israel sells Haifa Port to India’s Adani Ports, local firm Gadot for $1.2 billion

OCCUPIED-AL-QUDS: Israel said on Friday it will sell Haifa Port, a major trade hub on its Mediterranean coast, to winning bidders Adani Ports (APSE.NS) of India and local chemicals and logistics group Gadot for 4.1 billion shekels ($1.18 billion).

Gadot and Adani made it to the end of a two-year tender process that Israel hopes will lower import prices and help shorten notoriously long wait times at Israeli harbors. "The privatization of the port of Haifa will increase competition at the ports and lower the cost of living," Finance Minister Avigdor Lieberman said.

Adani will have a majority 70% stake and Gadot will hold the remaining 30%, according to an industry official. "Delighted to win the tender ... Immense strategic and historical significance for both nations!" Adani Group Chairman Gautam Adani wrote on Twitter.

Global supply chains have been hit over the past year by lack of staffing at ports, lockdowns and a strain on available ships for hire as vessels get stuck due to congestion in many parts of the world. About 98% of all goods move in and out of Israel by sea and the government has been upgrading the sector to maintain economic growth. Haifa, surrounded by the Carmel mountains to the east which limit winds and choppy waters, has operated as a port for centuries.