AD Ports Group and India's Adani Ports to explore investment opportunities in Tanzania

Companies to collaborate on potential end-to-end logistics infrastructure and solutions

Abu Dhabi's Khalifa Port is part of AD Ports Group's extensive logistics network. Photo: Abu Dhabi Ports

AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, and India's Adani Ports have signed a preliminary agreement to explore joint investment opportunities in Tanzania.

The two companies will collaborate on potential end-to-end logistics infrastructure and solutions, which include services for rail, maritime, port operations, digital services and an industrial zone, AD Ports said in a statement on Thursday.

The companies will also establish maritime academies in the East African country.

AD Ports' venture in Tanzania is part of the UAE government's strategy to position Abu Dhabi as a global leader in logistics and industry, and will enable international companies to enter African markets, Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group, said.

The agreement “is significant in its impact on both Tanzania’s ability to transform itself into an African trading hub, as well as our ability to further develop our global capabilities and connections that will bring goods to market faster and more efficiently”, Mr Al Shamisi said.

Tanzania's freight sub-sectors are expected to post “healthy” growth rates in the short to medium term, with total trade growth projected to expand by more than 10 per cent in 2022 as the easing of Covid-19 restrictions encourages consumer spending on imports, according to Fitch Solutions.

Stronger global economic growth would also increase demand for Tanzanian exports. Cargo over rail, road and port are all expected to improve in the long term, as Dodoma continues to invest in turning Tanzania into an international logistics hub for East Africa, it added.

The agreement between AD Ports and Adani Ports is expected to “improve and bring about positive change in the lives of communities, standing by our commitment to growth with goodness”, said Karan Adani, chief executive of Adani Ports.

“We continue to support local employment, as well as general economic growth in Tanzania and East African countries that will benefit from our investments through the collaboration with AD Ports Group,” he said.

The move is part of a flurry of agreements the Abu Dhabi company has signed to expand its international presence.

AD Ports' deal with Adani comes two days after it signed a similar agreement with Hong Kong's Hutchison Ports, in which the two companies will also seek to explore joint investment opportunities to boost Tanzania's logistics sector.

Last month, the Abu Dhabi company signed two agreements with Uzbekistan's SEG to develop logistics infrastructure and a food trading hub in the East Asian country.

A few days before that, it announced that it will acquire a 70 per cent stake in Egypt's International Associated Cargo Carrier for Dh514 million ($140m) as it seeks to increase its footprint in the Middle East and North Africa.

Also last month, AD Ports signed an agreement with UAE-based Hayat Biotech to support the pharmaceutical company's international expansion.

AD Ports Group was established in 2006, and owns and operates 10 ports in the UAE, including Khalifa Port, Zayed Port, Mussaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and the Abu Dhabi Cruise Terminal, as well as a terminal in Guinea. It manages more than 550 square kilometres of industrial zones.