InvestorQ : What could be the benefits of Adani Ports acquiring Haifa of Israel from a macro perspective?
Lavanya Subramanian made post

What could be the benefits of Adani Ports acquiring Haifa of Israel from a macro perspective?

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Anamika Sodhani answered.
4 weeks ago
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Adani Ports and Special Economic Zone (APSEZ) has got the confirmation from the Israeli government that it has been the succesful bidder for the acquisition of the Haifa Port in Israel. Israel is unique in the sense that nearly 98% of its total trade is through the sea route, mainly due to its unique geographical positioning. Hence, access to a port in Israel, gives access not only to the Middle East and West Asia, but also onwards to Europe.

Adani Ports is of the firm belief that this move would boost trade lanes between Indian ports with key ports in Europe and the Middle East. It may eventually even emerge as an important entrepot centre for Indian trade with Europe and the Middle East, in much the same way as Singapore has emerged in the Asia region.

It may be recollected that Adani Ports has bagged Haifa in consortium with the Israeli Chemical company, Gadot, for $1.18 billion. The bid was won after nearly 2 years of intensive bidding. Adani Ports has the global credentials, being the largest port developer and operator in India, This move opens up the highly lucrative Mediterranean region.

There is more in store. After years of friction, Israel and the Arab nations are finally warming up to each other, thanks to intervention from the US. This is likely to open up new trading opportunities for India with West Asia and Europe.

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