Adani Group, a leading Indian conglomerate, along with its partners have completed the acquisition of Haifa Port, a major trade hub on the Mediterranean in northern Israel, for a total of 4 billion shekels ($1.15 billion), according to Israel's Finance Ministry. The sale, which took five years to complete, marks the conclusion of a nearly two-decade reform effort to improve the country's underperforming seaport sector, which had long been plagued by labor strikes. Israel has been privatizing its state-owned ports and building new private docks in an effort to bring down costs and reduce above-average waiting times for vessels to unload.
As 99% of all goods move in and out of Israel by sea, port upgrades are critical to maintain economic growth. The acquisition of Haifa port by the Adani-led consortium, along with the entry of China's Shanghai International Port Group (SIPG), which opened a new port across the bay in Haifa last year, promises to boost Israel's standing as a regional trade hub.