COSCO, Abu Dhabi Ports ink container terminal deal

COSCO SHIPPING Ports Limited will operate a container terminal with a draft depth of 18 metres, with 1200 metres of quay wall and adjacent land

NEWS, Business, Abu dhabi, Abu Dhabi Ports, China, Container terminal, COSCO Shipping, Quay wall, Uae

Abu Dhabi Ports signed a container terminal concession agreement with COSCO SHIPPING Ports Limited - Abu Dhabi (CSPL SPV), a wholly-owned subsidiary of COSCO SHIPPING Ports Limited.

COSCO SHIPPING Ports Limited will operate a container terminal with a draft depth of 18 metres, with 1200 metres of quay wall and adjacent land.

The first 800 metres of the quay length (and the corresponding concession area) is expected to commence operations in H1 2018 and the later 400 metres (and the corresponding expanded concession area) is expected to commence operations in 2020.

Once the expansion areas are occupied, the concession area will span approximately 70ha with three berths, which will add 2.4 million TEUs a year to the port’s existing capacity of 2.5 million TEUs.

The agreement includes the option for a further 600 metre of quay length in the future to allow for anticipated volume growth, the nominal annual handling capacity will increase to 3.5 million TEUs when all phases are complete, creating a new overall annual capacity of up to six million TEUs.

HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and chairman of ADPC, said: “The signing of the concession agreement between Abu Dhabi Ports Company and COSCO Shipping Ports Limited will significantly expand trade between China, the UAE and the broader region. It will greatly enhance the UAE and Abu Dhabi’s role as a key logistics and trading hub, between East and West and will also serve to further diversify the UAE’s dynamic and growing economy.”

Wan Min, President of China COSCO Shipping Corporation Limited, said: “Khalifa Port Container Terminal 2 will be the second overseas terminal in which COSCO SHIPPING Ports holds the controlling interest. This investment is expected to strengthen COSCO SHIPPING Ports’ sustainable growth and create value for our shareholders. With the strong support from the large container shipping fleet of COSCO SHIPPING Group, COSCO SHIPPING Ports will dedicate its efforts to develop Khalifa Port Container Terminal 2 as a hub of the Upper Gulf region in the Middle East for international container shipping liners. We are confident that the project will stimulate the implementation of ‘One Belt One Road’ initiative, and will promote strategic cooperation between China and the UAE.”

Khalifa Port Container Terminal 2 is located along the “Silk Road Economic Belt and the 21st Century Maritime Silk Road” and the shipping hub of West Asia region. Khalifa Port, is the major container gateway port of Abu Dhabi and is strategically situated between Abu Dhabi and Dubai with excellent hinterland connections and geographic location.

The expansion of the quay wall is part of the broader developments at the Khalifa Port, which include an innovative new terminal booking, tracking and transaction system for sea and land based users, advanced RoRo facilities, new liner calls, the development of a regional liner hub and transhipment business to South Asia, as well as the addition of approximately 14.5 million square metres now leased in the adjacent Khalifa Industrial Zone (KIZAD).

 

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