Abu Dhabi Ports and China’s Cosco Shipping Ports have signed an agreement to develop the Middle East region’s largest container freight station (CFS) in Abu Dhabi’s Khalifa Port.

The planned warehouse will have a total area of 275,000 square metres with a provision for another 100,000 square metres for subsequent expansion.

The facility is expected to offer bonded less than container load (LCL)/ full container load (FCL) consolidation and de-consolidation services, cross stuffing, cargo weight reduction, short term warehousing for de-consolidated cargo as well as easy connectivity with the container terminals in Khalifa Port.

“The facility will boost volume coming in and out of Khalifa Port, in particular from the Khalifa Free Trade Zone,” says Mohamed Juma Al-Shamisi, Abu Dhabi Ports CEO.

The new freight warehouse, in addition to the planned new terminal as well as the recent direct investment made by China’s Jiangsu province to develop a dedicated industrial area at the free trade zone are part of the overall strategy that is expected to enable Abu Dhabi to have a direct access the Asian market particularly China and achieve growth quickly.

“Products that are produced in factories based in Abu Dhabi will be able to reach China through oceangoing vessels more quickly,” says Zhang Wei, vice chairman and managing director of Cosco Shipping Ports. “Manufacturers in China can also access the GCC region and other parts of the world through this facility in Abu Dhabi.”

Abu Dhabi Ports and Cosco Shipping signed a 35-year concession agreement in 2016, which is valued at an estimated $738m, according to local media reports.