Abu Dhabi Ports signs concession agreement with COSCO SHIPPING Ports Limited

coscoCaptain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports and Zhang Wei, vice-chairman of COSCO SHIPPING Ports Limited signed the agreement. (Image source: Abu Dhabi Ports)Abu Dhabi Ports has signed a container terminal concession agreement with COSCO SHIPPING Ports Limited – Abu Dhabi (CSPL SPV), a wholly-owned subsidiary of COSCO SHIPPING Ports Limited, a subsidiary of China COSCO SHIPPING Corporation Limited

The event was held today in the presence of Sultan Ahmed Al Jaber, UAE minister of state and chairman of Abu Dhabi Ports, Zheng Chiping, deputy director of the foreign investment department of the National Development and Reform Commission of PRC and Wan Min, president of China COSCO Shipping Corporation Limited.

COSCO SHIPPING Ports Limited will operate a container terminal with a draft depth of 18 metres, with 1,200 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 an area of approximately 70 ha with three berths, which will add 2.4mn TEUs a year to the port’s existing capacity of 2.5mn 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 3.5mn TEUs when all phases are complete, creating a new overall annual capacity of up to six million TEUs.

The global port operator giant is establishing a joint venture company in 2016 to operate the new Khalifa Port Container Terminal 2 in Khalifa Port, one of the world’s fastest growing container ports and a leading hub for the Middle East, Africa and South Asia (MEASA) region.

As per the agreement, the joint venture company will be entitled concession rights of Khalifa Port Container Terminal 2 for a span of 35 years, with a renewable period of 5 additional years. CSPL SPV will have the controlling stake in the joint venture company.

“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,” said Al Jaber.

“Under the leadership of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and President Xi Jinping of the People’s Republic of China, our two countries have enjoyed strong bilateral ties across a number of strategic sectors, “ added Dr Al Jaber.

Besides Khalifa Port, COSCO SHIPPING Ports Limited operates a global network of 46 terminals and 169 berths across mainland China, Hong Kong, Taiwan, South Korea, Singapore, Greece, Turkey, Egypt, Belgium and the USA.

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.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?