Netherlands-based APM Terminals International on 8 November signed the 25-year concession agreement to operate Mina Salman and the new Khalifa bin Salman ports. APM was selected for the contract by the Finance Ministry in February (MEED 17:2:06).
Netherlands-based APM Terminals International on 8 November signed the 25-year concession agreement to operate Mina Salman and the new Khalifa bin Salman ports. APM was selected for the contract by the Finance Ministry in February (MEED 17:2:06).The concession agreement will come into force on completion of the new port at Hidd, set for the third quarter of 2006. Dredging and reclamation is complete but the infrastructure contract was only recently awarded to the local Ahmed Mansour Al-a'Ali. The new port will cover 900,000 square metres and have a 1.8-kilometre quay wall with alongside depth of 15 metres capable of handling post-Panamax vessels. Annual throughput capacity will be more than 1 million 20-foot equivalent units (TEUs).APM will invest at least $60 million in equipment for the Khalifa bin Salman port, including four post-Panamax gantry cranes and a rubber tyre gantry container management system. Almost all operations will be shifted from Mina Salman to the new facility, while some military functions at the old port are likely to be expanded.Under the terms of the concession, APM will be guaranteed a monopoly for 15 years of the 25-year term, during which the government is barred from developing a new commercial port in the kingdom. The project company is obliged to stage an initial public offering (IPO) of at least 20 per cent of shares within five years of the new port beginning commercial operations but not less than three years after incorporation. The share sale will be open to Bahraini nationals only.APM Bahrain is an 80:20 joint venture with the local YPA Kanoo Holdings. KPMG acted as financial adviser to the government, Trowers & Hamlins was the legal adviser and Meyrick Associates was the technical consultant.
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