The local National Marine Dredging Company (NMDC) has been selected for the estimated AED1bn ($272m) contract to expand Abu Dhabi’s Khalifa Port.

The marine works contract is for a second container terminal that requires the construction of a 3 kilometre quay wall in addition to deepening the port’s main channel and basin. NMDC was already working on the preparatory works for the project.

Abu Dhabi Ports received commercial bids from contractors in August after receiving technical proposals in July.

A joint venture of Abu Dhabi Ports and China’s Cosco Shipping Ports will develop and operate the second container terminal at Khalifa Port under a 35-year concession agreement, signed in 2016. The contract is renewable for five years and has an estimated value of $738m.

The second container terminal is expected to become operational in early 2019.

Once completed, the terminal is expected to double Khalifa Port’s existing capacity of 2.5 million 20-foot equivalent units (TEUs), with provision for an additional 1 million TEUs depending on the success of the business model and the port’s growth.