DP World signs major Yemen seaport deal
DP World has formed a joint venture in Yemen to operate and develop the Port of Aden.
The Dubai-based company has partnered with Yemen Gulf of Aden Port Corporation for the project, which includes the lease of both Aden Container Terminal and the nearby Ma’alla Container Terminal.
In addition, the two companies will invest approximately US$220 million in a major development strategy, starting with the construction of a new 400 metre berth extension at Aden Container Terminal.
“The port is strategically located to capture the continued growth in regional transhipment volumes. We believe Yemen will significantly benefit from efficient port and logistics infrastructure” commented Sultan Ahmad Bin Sulayem, chairman, DP World. Legal firm Allen & Overy, which advised DP World on the transaction, believes the project will allow Aden to emerge as a gateway for domestic cargo in Yemen and a major transhipment hub for the Middle East in general.
“Middle Eastern countries with developing legal jurisdictions are attracting an increasing amount of infrastructure investments and deals such as this one are tangible evidence of this market shift,” said Christian Saunders, partner, Allen & Overy.