Abu Dhabi Ports and shipping company CMA CGM Group have formed a joint venture and signed a 35-year concession agreement to develop and operate a new terminal at Khalifa Port.
The partners are expected to commit about AED570 million ($154 million) to the project, Abu Dhabi Ports said in a statement on Thursday.
The construction starts in 2021, with an initial quay length of 800 meters and an estimated annual capacity of 1.8 million TEUs.
The terminal will be managed by the joint venture company 70 percent owned by CMA CGM’s subsidiary CMA Terminals and 30 percent owned by Abu Dhabi Ports.
The new terminal will have an annual capacity of 1.8m TEU. Abu Dhabi Ports will be responsible for developing up to a total of 1,200 m of quay wall, a 3,800 m breakwater, a full built-out rail platform, and 700,000 sq m of the terminal yard.
Falah Mohammed Al Ahbabi, chairman of Abu Dhabi Ports, stated that “as well as driving increased trade volumes through our port, we expect the facility’s capacity and added trade links with other high-profile port destinations will drive investment into local businesses and our industrial zones, fast-track the development of key sectors including manufacturing and logistics and raise demand for manpower.”
“In all, we project that over the next five years, the CMA Terminals joint venture will drive the further development of the Khalifa Industrial Zone Abu Dhabi (KIZAD), while simultaneously contributing significantly to the national GDP,” he added.
Captain Mohamed Juma Al Shamisi, group CEO, AD Ports Group, said: “At home, we expect the presence of the shipping line terminal, which will link directly to Khalifa Port's upcoming rail terminal and utilize its services, to accelerate trade flows moving in and out of the UAE, while also encouraging CMA CGM Group's customers to consider establishing a presence in Abu Dhabi.”
Rodolphe Saadé, chairman and CEO of CMA CGM, said: “The ambitious project we are launching today in Abu Dhabi marks an important milestone in CMA CGM’s development strategy in the region.”
He added that “this state-of-the-art terminal will contribute to enhancing Khalifa Port’s position as a leading global hub and to boosting the region’s economy, accelerating trade flows in and out of Abu Dhabi.
“It will also enable our group to expand its shipping and logistics network in the region, where we see a lot of growth potential.”
