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Abu Dhabi Ports has signed a container terminal concession agreement with Cosco Shipping Ports, which seems certain to enhance Khalifa Port’s position as an upper Gulf container hub centre.
Under the terms of the concession, signed late last month, Cosco Shipping Ports will operate a new container terminal with 1200 m of quay wall and adjacent land and an alongside draft of 18m. The first 800 m of the quay and associated back-up land is expected to commence operations in the first half of 2018 and the remaining 400 m by 2020.
Once the expansion is fully developed the Cosco terminal in Abu Dhabi will cover approximately 70 hectares with three berths, adding 2.4 million teu a year to the port’s existing throughput capacity of 2.5 million teu. The agreement includes an option for a further 600 m of quay in the future to allow for anticipated growth.
The venture will be known as Khalifa Port Container Terminal 2 and the concession will last for 35 years, with an option to renew for period of 5 additional years. Cosco Shipping Ports will have the controlling stake in the joint venture company, with Abu Dhabi Ports as a minority shareholder, set up to operate the facility.
“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 H.E Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of ADP. Khalifa Port Container Terminal 2 will be only the second overseas terminal in which Cosco Shipping Ports holds the controlling interest.
