Adani and Haifa Port

The Reform Behind the Sale (2011 to January 2020)

Almost all of Israel's trade moves by sea. A 2021 paper from the Institute for National Security Studies (INSS) at Tel Aviv University records that 99 percent of Israel's trade passed through its seaports. The same paper notes that a 2011 government committee on the cost of living, the Trajtenberg Committee, found that container crews at Israeli ports were 15 to 25 percent less productive than crews at competing Mediterranean ports, and named the lack of competition as the main failure [1]. In December 2011, the government adopted the committee's conclusions and ordered ministries to speed up a ports reform first announced in 2005. The goals were competition, higher state revenue, and a lower cost of living [1]. The reform had two parts. The first was to build two new private container terminals, Bayport at Haifa and Southport at Ashdod, each able to receive ships carrying up to 24,000 TEU, which the old ports could not take [1]. SIPG, a company controlled by the Chinese state, began operating Bayport on 1 September 2021 [1]. Its operating term is 25 years [2]. The second part was to sell the existing state port companies to private owners. On 21 January 2020, the Ministerial Committee for Privatization Matters adopted Resolution MH/11. It decided to sell all state holdings in Haifa Port Company, in one block, to a strategic buyer [3]. The Jerusalem Post reported on the same day that the new owner was expected to operate the port until 2054 [2].

The Tender and the Award (January 2020 to January 2023)

Resolution MH/11 set strict entry rules. A bidder needed proven experience as a port terminal operator or a container shipping line, measured against fixed container or tonnage thresholds over the previous three years [4]. One strategic buyer had to hold at least 30 percent of the purchasing company and a majority of the shares held by all strategic buyers [4]. The scoring rules added NIS 5 million to a bid for each percentage point held by a buyer with container experience, up to 30 points, and a further NIS 50 million if that buyer led the group [4]. The resolution is also built in a security screen. After hearing from the security agencies and the Ministry of Foreign Affairs, the sale committee could halt or attach conditions to any bidder's participation to prevent damage to Israel's security or foreign relations [3]. The Government Companies Authority ran the sale, and the Knesset Finance Committee had to approve the method of privatisation [3][5]. In mid-July 2022, Israel's Finance Ministry declared the Adani and Gadot consortium the winner. On 15 July 2022, APSEZ announced that the consortium, split 70:30, would buy 100 percent of Haifa Port Company for NIS 4.1 billion, equal to US$1.18 billion [6]. The Israeli daily Haaretz reported that this offer was 55 percent above the second-highest bid [7]. The consortium completed the purchase on 10 January 2023. In a filing to Indian stock exchanges, APSEZ stated that the concession period runs until 2054 [8]. Reuters, reporting the Finance Ministry's closing announcement, gave the price as 4 billion shekels, or US$1.15 billion, and noted that the sale process had taken five years [9]. Both figures are given here as each source reported them.

What the Concession Covers

The consortium owns 100 percent of Haifa Port Company, the operator of the existing port [8]. Reuters reported that Haifa handled about half of Israel's freight volume in 2021 [9]. The port is also the country's largest for cruise ships [10]. The purchase does not include Bayport, which SIPG operates on the other side of the bay [9]. The financial terms are set out in the resolution. The buyer invests up to NIS 1 billion in the company's equity, and any payment above that amount goes to the state [5]. The first NIS 400 million of this injection is reserved for port infrastructure and equipment. The company must report each year to the Ministry of Transport on how the money is used [5]. Appendix B to the resolution fixes the main building obligation. The company must create capacity for 400-metre container ships, either by deepening the Eastern Terminal quay or by building a new terminal at Carmel B. Works must begin no later than 1 January 2033, and the company had to tell the state by 2030 which route it would take [11]. In return, the state agreed to build road and access links that allow equal competition between Haifa Port Company and Bayport [11]. The deal also carries security and governance terms. Before closing, the state had to issue an Order for Protecting the Vital Interests of the State, drafted with the security agencies and the Foreign Ministry [3]. The buyer accepted employee observers on the board, limits on dividends, extra approvals for deals with the controlling shareholder, and a rule that any future controller inherits all of the buyer's obligations [12]. At the handover, Gautam Adani pledged to change the skyline of Haifa and announced plans for an artificial intelligence laboratory in Tel Aviv [10].

Israel's Strategic Reading

Israel's reading of the deal has an economic strand, a security strand, and a diplomatic strand. The economic case rests on competition. The INSS paper argued that new and upgraded ports would increase competition, reduce the need to transship cargo through foreign ports, cut costs, and push the existing ports to work more efficiently [1]. In 2020, Israel transshipped about 100,000 TEU through other ports, at a cost of US$30 million [1]. After the sale, Haifa Bay has two private operators competing for the same cargo. The security case concerns China and the United States. The same INSS paper judged that the direct risks from Bayport could be managed by Israel's security bodies. It identified the effect on relations with Washington as the larger challenge, and recorded that CIA Director William Burns reportedly raised American concern about Chinese penetration of Israel's economy with Prime Minister Naftali Bennett [1]. The Haifa Port Company tender ran under the security screen written into Resolution MH/11 [3]. Its result placed the older and larger half of Haifa's port with an Indian firm and an Israeli firm. The diplomatic case was stated by Prime Minister Benjamin Netanyahu at the handover on 31 January 2023. He called the deal "an enormous milestone." He said that brave Indian soldiers had helped liberate Haifa more than a century earlier, and that Indian investors were now helping to "liberate the port of Haifa" [13]. He added that he and his "good friend" Narendra Modi shared a vision of connecting the two countries by sea, air, and land routes [13]. On 9 September 2023, after the corridor plan was announced in New Delhi, Netanyahu said Israel would be "a central junction" in the new economic corridor. He said its railways and ports would open a gateway from India, through the Middle East, to Europe [14].

India's Strategic Reading

India's reading begins with commerce. APSEZ stated that the Haifa purchase extended its footprint into the European port sector, including the Mediterranean. Karan Adani, then APSEZ's chief executive, called the win strategic "from several dimensions" [6]. History is the second strand. On 23 September 1918, the 15th Imperial Service Cavalry Brigade, which included the Jodhpur, Mysore, and Hyderabad Lancers, captured the fortified city of Haifa. Forty-four Indian soldiers died in the campaign, and the Indian Army's 61st Cavalry still marks 23 September as Haifa Day [15]. On 14 January 2018, Modi and Netanyahu renamed Delhi's Teen Murti Chowk as Teen Murti Haifa Chowk in their honour [15]. At the 2023 handover, Gautam Adani recalled the 1918 battle and said that soldiers of both countries had fought side by side in the same city where the two now share a port [10]. The corridor is the third strand. On 9 September 2023, India, the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union signed a memorandum on the India-Middle East-Europe Economic Corridor. Its stated purpose is to move goods between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe [16]. Haifa is the Mediterranean port on that route, and an Indian company now operates it. The partnership has since deepened. During Modi's state visit to Israel on 25 and 26 February 2026, the two governments raised their relationship to a "Special Strategic Partnership for Peace, Innovation & Prosperity," with 27 outcomes, including 16 agreements [17]. Modi said the talks covered progress on the corridor [18].

Operations Since the Handover (January 2023 to March 2026)

At the handover ceremony, Gautam Adani said, "We will transform the entire port landscape," and stated that his group would keep investing in Israel [19]. The ceremony took place days after a US short-seller published a report against the Adani Group. Adani did not address the report in his remarks [19]. Port volumes grew through a period of regional war. In the April to June 2025 quarter, Haifa's container throughput rose 28 percent, from 150,539 TEU to 191,986 TEU. Bulk cargo rose 45 percent to 793,000 tonnes. These gains came despite a 12-day slowdown during that June's conflict, and were partly won from Bayport and from Ashdod [20]. On the night of 14 June 2025, Iranian missiles targeted the Haifa port area and a nearby refinery. Shrapnel fell in the port's chemical terminal, and interceptor fragments were found at Kishon West. No injuries were reported. Eight ships continued to work cargo, and the port had about 700 employees at the time [21]. After further Iranian missile and drone attacks on Israel at the start of March 2026, Haifa Port Company stated on 1 March 2026 that all its employees were safe and all port assets were in working condition. It said it was operating under the guidance of Israel's Ministry of Transport and Road Safety [22].

In One Paragraph

Israel sold 100 percent of Haifa Port Company to a consortium of India's Adani Ports (70 percent) and Israel's Gadot Group (30 percent) after a security-screened tender. The consortium won in July 2022 with a NIS 4.1 billion (US$1.18 billion) offer and closed the purchase on 10 January 2023, under a concession running to 2054. The deal covers the existing Haifa port but not China's SIPG-run Bayport. It required an equity injection of up to NIS 1 billion and obliges the company to begin works for 400-metre ships by 2033. Israel sees the deal as completing a pro-competition ports reform and placing a trusted partner beside a Chinese terminal. India sees a first Mediterranean gateway, a link to the 1918 Battle of Haifa, and an anchor for the India-Middle East-Europe Economic Corridor. The port kept operating through the Iranian missile attacks of 2025 and 2026.

Sources

1. Lavi, Galia, and Assaf Orion. “The Launch of the Haifa Bayport Terminal: Economic and Security Considerations.” INSS Insight no. 1516. Tel Aviv: Institute for National Security Studies, September 12, 2021.https://www.inss.org.il/publication/haifa-new-port/.
2. “Government Approves Haifa Port Privatization Plans.” Jerusalem Post, January 21, 2020.https://www.jpost.com/israel-news/government-approves-haifa-port-privatization-plans-614827.
3. Israel, Ministerial Committee for Privatization Matters. Resolution MH/11: Privatization of Haifa Port Company Ltd. January 21, 2020. Unofficial English translation, secs. 1–5, pp. 1–3.https://www.gov.il/BlobFolder/policy/privatizations-haifa-port/en/files_privatizations_hifa-port_eng_HaifaPort_Govdecision-eng.pdf#page=1.
4. Israel, Ministerial Committee for Privatization Matters. Resolution MH/11, app. A, pp. 7–9.https://www.gov.il/BlobFolder/policy/privatizations-haifa-port/en/files_privatizations_hifa-port_eng_HaifaPort_Govdecision-eng.pdf#page=7.
5. Petersburg, Ofer. “History on the Knesset Table: Will 40k Indian Workers Come to Israel?” Jerusalem Post, November 2023.https://www.jpost.com/business-and-innovation/real-estate/article-774021.
6. Adani Ports and Special Economic Zone Ltd. “Adani and Gadot Win Tender to Privatise Israel’s Haifa Port.” Media release, Ahmedabad, July 15, 2022.https://www.adaniports.com/newsroom/media-releases/adani-and-gadot-win-tender-to-privatise-israels-haifa-port.
7. Press Trust of India. “Adani’s Haifa Port Acquisition a ‘Strategic Purchase’: Israeli Media.” Business Standard, July 18, 2022.https://www.business-standard.com/amp/article/companies/adani-s-haifa-port-acquisition-a-strategic-purchase-israeli-media-122071800801_1.html.
8. Adani Ports and Special Economic Zone Ltd. “Acquisition of Haifa Port Company Ltd.” Media release filed with the National Stock Exchange of India, January 10, 2023.https://nsearchives.nseindia.com/corporate/ADANIPORTS_10012023190759_MediaRelease.pdf.
9. Reuters. “India’s Adani Group Completes Purchase of Israel’s Haifa Port.” Ynetnews, January 10, 2023.https://ynetnews.com/business/article/bjparlj5j.
10. Press Trust of India. “Adani Group Acquires Haifa Port for $1.2 bn, Israeli PM Netanyahu Lauds Deal as ‘Enormous Milestone.’” ThePrint, January 31, 2023.https://theprint.in/world/adani-group-acquires-haifa-port-for-1-2-bn-israeli-pm-netanyahu-lauds-deal-as-enormous-milestone/1346029/.
11. Israel, Ministerial Committee for Privatization Matters. Resolution MH/11, app. B, pp. 9–10.https://www.gov.il/BlobFolder/policy/privatizations-haifa-port/en/files_privatizations_hifa-port_eng_HaifaPort_Govdecision-eng.pdf#page=9.
12. Israel, Ministerial Committee for Privatization Matters. Resolution MH/11, sec. 5.2, pp. 3–4.https://www.gov.il/BlobFolder/policy/privatizations-haifa-port/en/files_privatizations_hifa-port_eng_HaifaPort_Govdecision-eng.pdf#page=3.
13. Press Trust of India. “Israeli PM Netanyahu Describes Haifa Port Deal with Adani Group as ‘Enormous Milestone.’” The Tribune, January 31, 2023.https://www.tribuneindia.com/news/business/israeli-pm-netanyahu-describes-haifa-port-deal-with-adani-group-as-enormous-milestone-475353.
14. Times of Israel Staff. “‘Greatest Cooperation Project in Our History’: PM Lauds New US-Led Transport Corridor.” Times of Israel, September 9, 2023.https://www.timesofisrael.com/greatest-cooperation-project-in-our-history-pm-lauds-new-us-led-transport-corridor/.
15. Press Trust of India. “Teen Murti Chowk to Be Formally Renamed after Israeli City.” Deccan Herald, January 14, 2018.https://www.deccanherald.com/amp/story/archives%2Fteen-murti-chowk-formally-renamed-1915852.
16. Governments of Saudi Arabia, the European Union, India, the United Arab Emirates, France, Germany, Italy, and the United States. “Memorandum of Understanding on the Principles of an India-Middle East-Europe Economic Corridor.” September 9, 2023. American Presidency Project, University of California, Santa Barbara.https://www.presidency.ucsb.edu/documents/memorandum-understanding-the-principles-india-middle-east-europe-economic-corridor.
17. Embassy of India, Tel Aviv. “Bilateral Relations” page.https://www.indembassyisrael.gov.in/pages?id=mbk5e&subid=lejRe.
18. “16 Agreements Signed during Modi’s Israel Visit.” Globes, February 2026.https://en.globes.co.il/en/article-16-agreements-signed-during-modis-israel-visit-1001536287.
19. Amichay, Rami, Dan Williams, and Ari Rabinovitch. “Will Keep Investing in Israel: Gautam Adani after Haifa Port Takeover.” Reuters, via Business Standard, January 31, 2023.https://www.business-standard.com/amp/article/companies/will-keep-investing-in-israel-gautam-adani-after-haifa-port-takeover-123013101376_1.html.
20. “Haifa Port Achieves Record Q1 Growth.” Maritime Gateway, n.d.https://www.maritimegateway.com/haifa-port-achieves-record-q1-growth/.
21. Press Trust of India. “Adani’s Haifa Port Unaffected by Iranian Missile Strikes, Operations Normal: Sources.” The Week, June 15, 2025.https://www.theweek.in/wire-updates/business/2025/06/15/fgn44-biz-adani-ld-israel.html.
22. “‘All Assets Fully Secure’: Adani’s Haifa Port Confirms Normal Operations after Iran Missile Attacks on Israel.” Business Today, March 1, 2026.https://www.businesstoday.in/world/story/all-assets-fully-secure-adanis-haifa-port-confirms-normal-operations-after-iran-missile-attacks-on-israel-518645-2026-03-01. ** **