Abu Dhabi Ports has signed a 30-year concession agreement with Swiss-based MSC Mediterranean Shipping Company to establish a new container terminal at Khalifa Port.
MSC is expected to invest AED4bn ($1.1bn) over the life of the concession agreement in operational equipment as well as in deepening berths at the port, an official statement said.
It is understood MSC has committed to more than double the current ship-to-shore cranes at Khalifa Port to 25 over the next two years.
The deepening of berths will enable Khalifa Port to receive the world’s largest shipping vessels carrying bulk cargo shipment.
MSC also said it expects to gradually shift some of its container handling in the region to Khalifa Port starting in July.
Mohamed Juma al-Shamisi, CEO, Abu Dhabi Ports, said the agreement with MSC comes with multiple strategic benefits to customers and companies that include faster and more efficient service and easier access to more markets in the region and globally
The executive also cited that the agreement is in line with the goal to attract more foreign direct investments into Abu Dhabi, especially in the Khalifa Industrial City and Khalifa Port Free Trade Zone.
The deal with MSC is the second major concession deal signed by Abu Dhabi Ports since 2016, when it formed a joint venture with with China’s Cosco Shipping Ports for the development and operation of a second container at Khalifa Port.
Under the agreement, Cosco will operate an initial 1,200 metres of quay and yard with a capacity of 2.4 million twenty-foot equivalent units (TEUs).
Last year, Abu Dhabi Ports received bids for the marine works package on the planned second container terminal at Khalifa Port in August last year.
However, the contract has not yet been awarded with sources telling MEED that Abu Dhabi Ports could be considering retendering the contract.
Khalifa Port’s container capacity stood at 2.5m TEUs in 2017. Abu Dhabi Terminals, a wholly owned subsidiary of Abu Dhabi Ports, operates the Khalifa Port's Terminal 1.
You might also like...
McDermott completes financial restructuring exercise
28 March 2024
Region heads for hotel boom
28 March 2024
Lowest bidders emerge for Kuwait housing project
28 March 2024
Redcon wins Red Sea Triple Bay infrastructure deal
28 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.