UAE’s premier facilitator of logistics, industry, and trade, AD Ports Group has signed a 35-year concession agreement with French container transportation and shipping company CMA CGM Group to establish and manage a new terminal in Khalifa Port.
According to the terms of the deal, a new terminal will be established in Khalifa Port, which will be managed by a joint venture (JV) owned by CMA CGM’s subsidiary CMA Terminals (with a 70 percent stake) and AD Ports Group (30 percent stake). The partners are expected to invest approximately $154 million (AED 570 million) in the project.
The new terminal, which will begin construction in 2021, will have an initial quay length of 800 meters and an annual capacity of 1.8 million TEUs. The project is expected to complete in 2024. The AD Ports Group will be in charge of developing a wide range of supporting marine works and infrastructure. This comprises a total of 1,200 meters of quay wall, a 3,800-meter breakwater, a completely built-out rail station, and a terminal yard of 700,000 square meters.
According to the statement, the terminal will serve as a new regional center for CMA CGM, allowing the company to expand its services in Abu Dhabi, South Asia, Western Asia, East Africa, Europe, the Mediterranean, the Middle East and India.
“This landmark agreement with the 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. This agreement will aid us to realize our long-term ambitions to become a top 10 ports, industrial, and logistics operator by expanding our capacity and growth across the region and beyond. In all, we project that over the next five years the CMA Terminals joint venture will drive the further development of the Khalifa Industrial Zone Abu Dhabi (KIZAD), while simultaneously contributing significantly to the national GDP.”
Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group said, “The addition of a new container terminal at Khalifa Port, which will be managed by a joint venture formed in collaboration with CMA Terminals, opens a new chapter in our organization’s efforts to become a key facilitator of global trade, and elevates Abu Dhabi’s standing as both a regional and an international hub for maritime trade.”
“This state-of-the-art terminal will contribute to enhancing Khalifa Port’s position as a leading global hub and to boosting the region’s economy, accelerating trade flows in and out of Abu Dhabi. It will also enable our Group to expand its shipping and logistics network in the region, where we see a lot of growth potential,” commented Mr. Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group.