COSCO signs agreement to double Port Khalifa capacity
Abu Dhabi Ports has signed a concession agreement with COSCO Shipping Ports for the operation of its new 18m deep, 1.8km long Khalifa Port Container Terminal 2 in Khalifa Port.
COSCO Shipping Ports and Abu Dhabi Ports have entered into a joint venture as part of the agreement, the new company, COSCO Shipping Ports Limited – Abu Dhabi (CSPL SPV), will be a wholly-owned subsidiary of COSCO Shipping Ports Limited.
The company is one of the leading container terminal operators in the world and a subsidiary of China COSCO Shipping Corporation Limited.
The first 800 metres of the quay length (and the corresponding Concession Area) is expected to commence operations in the first half of 2018 while the remaining 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 hectares with 3 berths, which will add 2.4 million TEU a year to the port’s existing capacity of 2.5 million TEU.
The 35-year 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 3.5 million TEU when all phases are complete, creating a new overall annual capacity of up to 6 million TEU.
CSPL SPV will have the controlling stake in the joint venture company, which 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.
“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 Dr. Sultan Ahmed Al Jaber, UAE minister of state and chairman of ADPC. “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.”
“With the development of China’s “One Belt One Road” strategy, there is boundless potential for expanding the UAE-China relationship further. We look forward to closer collaboration with China and to creating even greater economic progress for both our nations in the years ahead,” added Dr Al Jaber.
Wan Min, president of China COSCO Shipping Corporation Limited, said Abu Dhabi’s Khalifa Port is a strategic hub along the ‘One Belt One Road’, with significant geographical advantage for the development of terminal and logistics businesses
“Khalifa Port Container Terminal 2 will be the second overseas terminal in which COSCO Shipping Ports holds the controlling interest,” he added. “With the strong support from the large container shipping fleet of COSCO Shipping Group, COSCO Shipping Ports will dedicate its efforts to develop Khalifa Port Container Terminal 2 as a hub of the Upper Gulf region in the Middle East for international container shipping liners.”
The expansion of the quay wall and new concession agreement is part of the broader developments at the Khalifa Port, which include a new terminal booking, tracking and transaction system for sea and land based users, advanced RoRo facilities, new liner calls, the development of a regional liner hub and transhipment business to South Asia, as well as the addition of approximately 14.5 million square metres now leased in the adjacent Khalifa Industrial Zone (KIZAD).