State-backed holding company ADQ’s ADP Ports Group has signed a 35-year concession deal with a France-based global container transportation and shipping firm to set up a new mega terminal in Khalifa Port. 

Work on the new project will start this year and it is envisioned to be the first semi-automated container port in the Gulf Cooperation Council (GCC) region, catering to markets in South Asia, Western Asia and North and East Africa, as well as the Middle East, according to a statement. 

The deal signed between ADP Ports Group and CMA CGM Group will see the two partners invest approximately 570 million dirhams ($154 million) in the project. The French company operates 49 port terminals in 27 countries. 

Terms of agreement 

Under the terms of the agreement, the new terminal will be managed by a joint venture owned by CMA CGM Group’s subsidiary CMA Terminals (70 percent stake) and AD Ports Group (30 percent stake). 

AD Ports will be responsible for developing a wide range of supporting marine works and infrastructure, including up to a total of 1,200 metres of quay wall, a 3,800-metre breakwater, a fully built-out rail platform and a 700,000-square-metre terminal yard. 

The terminal will be handed over in 2024, with phase one including an initial quay length of 800 metres and an estimated annual capacity of 1.8 million TEUs. 

Landmark deal 

“Today’s landmark agreement with CMA CGM Group is a prime example of those continued efforts and one that will significantly accelerate trade and the development of industry in the UAE and beyond,” said Falah Mohammed Al Ahbabi, chairman of AD Ports Group. 

“We expect [that] the facility’s capacity and added trade links with other high-profile port destinations will drive investment into local businesses and our industrial zones, fast-track the development of key sectors including manufacturing and logistics, and raise demand for manpower.”

The signing of the deal was attended by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office. 

(Writing by Cleofe Maceda; editing by  Daniel Luiz) 

Cleofe.maceda@refinitiv.com

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