COSCO SHIPPING Ports Limited (CPSL SPV) has entered into a concession agreement with Abu Dhabi Ports Company to operate the new Khalifa Port Container Terminal 2.
The parties are establishing a joint venture company, in which CSPL SPV will have the controlling stake, to operate the terminal for a total of 35 years, with a renewable period of five years.
“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, said HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Abu Dhabi Ports.
Wan Min, President of CPSL SPV, added: “Abu Dhabi’s Khalifa Port is a strategic hub along the ‘One Belt One Road’, as it has unique geographical advantage for the development of terminal and logistics businesses.”
The new concession will see CPSL SPV operating 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 the first quarter of 2018 and the later 400 metres (with 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 hectares with three berths adding 2.4 million teu a year to the port’s existing capacity of 2.5 million teu.
The agreement includes the option for a further 600 metre of quay length in the future to allow for anticipated volume growth.
Expansion of the quay wall is part of the broader developments at the Khalifa Port, which include the development of a regional liner hub and transhipment business to South Asia and the growth of the adjacent Khalifa Industrial Zone (KIZAD).
Source: Port Strategy (LF)
Source: Port Strategy