Contribution of Israel's Haifa Port is 3% of total cargo volume, says Adani Ports

Adani Ports is closely monitoring the conflict in Israel and is prepared with a business continuity plan, the company said in a statement on Monday. 

"We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa Port is situated in the North. We have taken measures to ensure safety of our employees and all of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality."

Haifa's contribution to Adani Ports' numbers is "relatively small" at 3% of the total cargo volume, the statement added.

"The overall contribution of Haifa in APSEZ’s numbers is relatively small at 3% of the total cargo volume. For the current financial year (Apr 23-Mar 24), we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT. In the initial six months (Apr-Sep 23), APSEZ’s total cargo volume was 203 MMT, of which the Haifa share is 6 MMT. We stay confident of APSEZ's business performance," said the Adani firm.

Shares of billionaire Gautam Adani's Adani Ports & Special Economic Zone Ltd fell as much as 4.8% on Monday, as investors grew wary over possible escalation of a conflict in Israel, where the company owns a major port.

Adani operates the Haifa Port in northern Israel along with a local company after it completed its purchase for 4 billion shekels ($1.03 billion) in January.

Haifa is one of the main seaports in Israel, where about 99% of all goods move in and out of the country by sea.

Investor worries come as Palestinian Islamist group Hamas on Saturday launched the largest military assault on Israel in decades, killing hundreds of Israelis.

Haifa is a significant trading hub on the Mediterranean, located north of the present conflict zone.

Adani, the founder and chairman of the group, had said in January that the group would continue to invest in Israel.

Israel has drafted a record 300,000 reservists in its response to a multi-front Hamas attack from Gaza and is "going on the offensive," the chief military spokesperson said on Monday.

Since Saturday's surprise assault, Israeli aircraft have been pounding Gaza targets while its ground forces have battled to retake control of border villages and towns overrun by Palestinian gunmen.

Military officials had previously said that their focus was on securing Israel's side of the border before carrying out any major escalation of the counter-offensive in Gaza.

Chief military spokesperson Rear-Admiral Daniel Hagari confirmed media reports that 700 people had been killed on Israel's side of the border, including 73 confirmed members of the security forces. He said Israel's military had killed hundreds of Palestinian gunmen.