Abu Dhabi Ports expects to tender the contract to develop the infrastructure at the Fujairah port before end of 2017.
Planned works on the terminal include deepening of berths to 16.5 metres to increase capacity and accommodate larger vessels as well as the development of a 1 kilometre quay. A 300,000 square metre yard of storage space will also be built.
The agreement grants Abu Dhabi Ports the right to develop the ports infrastructure in addition to managing all container, general cargo, roll-on/roll-off (RORO) ships and cruise ships that call on the port.
A new entity to operate the port, Fujairah Terminals, has been formed.
Abu Dhabi Ports said development works are expected to begin in 2018 and be completed in 2021. The port is expected to remain operational during the construction period.
The port will also be fitted with modern equipment such as STS post panama quay cranes, rubber tyred gantry cranes and new information technology (IT) systems. The new quay cranes will begin operations in 2021.
In April, the Port of Fujairah and DP World terminated the build, operate and transfer (BOT) concession agreement, signed in 2005, for the expansion and development of the Fujairah Container Terminal at the port.
The Port of Fujairah offers direct access to the Gulf of Oman and Indian Sea. This allows vessels calling on the port to bypass the Strait of Hormuz.
The ports capacity is expected to reach 1 million twenty-foot equivalent units (TEUs) and 700,000 tons of general cargo by 2030.