Amidst Scandal, Adani Readies $2 Billion for Port Acquisitions in Europe

The quiet port of Kavala, Greece is among the sites rumored to be of interest to Adani's ports division (CeeGee / CC BY SA 4.0)

Published Dec 8, 2024 6:45 PM by The Maritime Executive

 

 

India’s Adani Group is reportedly planning to enter the European port market as it seeks to boost its presence in international trade routes. According to local media, Adani - through its ports subsidiary, Adani Ports& Special Economic Zones Ltd (APSEZ) - is preparing to invest $2 billion in acquiring European terminals.

“We are scouting for terminals in Europe, which accounts for 40 percent of global sea trade. Two or three terminals are under consideration with the deals expected to happen in the near future,” a spokesperson from Adani Group told The Hindu.

The quiet announcement comes a month after Adani Group Chairman Gautam Adani hosted ambassadors from the European Union, Belgium, Denmark and Germany at the company’s headquarters in Ahmedabad, India. Part of the envoys’ visit included a tour of India’s largest commercial port Mundra, operated by APSEZ.

As part of its expansion drive, APSEZ has been working to acquire large ports in Europe, Africa and Southeast Asia. Reports emerged last year that Adani Group was eyeing key Greek terminals, which would act as a strategic gateway for the rising India- EU trade. The two ports mentioned included Kavala in northern Greece and Volos, which lies about 200 miles from Athens.

But Adani Group’s reputation has taken a big hit following the recent corruption accusations by the United States Securities and Exchange Commission (SEC) and the U.S. Justice Department. Adani is alleged to have paid or promised about $265 million in bribes to Indian officials in order to sell them costly power from India’s largest solar project. These charges have seen other Adani deals scrutinized or even canceled, including the $1.85 billion project to modernize Kenya’s Jomo Kenyatta International Airport (JKIA). “The deals have been canceled based on new information provided by our investigative agencies and partner nations,” said Kenyan President William Ruto.

On the other hand, Tanzania said it would honor its contracts with APSEZ to run Dar es Salaam Port. In May, Tanzania entered into a 30-year concession with Adani Ports to operate Container Terminal 2 in Dar es Salaam Port.

Adani Group also controls ports in Vietnam, Israel, Sri Lanka, Indonesia and Australia.

Top image: CeeGee / CC BY SA 4.0