Abu Dhabi Ports signs concession agreement with Cosco Shipping
Abu Dhabi Ports (ADP) announced the signing of a container terminal concession agreement with Cosco Shipping Ports Limited – Abu Dhabi (CSPL SPV), a wholly- owned subsidiary of Cosco Shipping Ports Limited, one of the leading container terminal operators in the world and a subsidiary of China Cosco Shipping Corporation Limited.
The event was held in the presence of Dr. Sultan Ahmed Al Jaber, the UAE Minister of State and Chairman of Abu Dhabi Ports, Zheng Chiping, Deputy Director of the foreign investment department of the National Development and Reform Commission of PRC and Wan Min, President of China Cosco Shipping Corporation Limited.
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports and Zhang Wei, Vice Chairman and Managing Director of Cosco Shipping Ports Limited signed the agreement, launching a new and prosperous journey of Abu Dhabi Ports, in line with the aspirations of Abu Dhabi Vision 2030 for a more diversified economy.
Cosco Shipping Ports Limited will operate a container terminal with a draft depth of 18 metres, with 1200 metres of quay wall and adjacent land. The first 800 metres of the quay length (and the corresponding concession area) is expected to commence operations in H1 2018 and the last 400 metres (and the corresponding expanded concession area) is expected to commence operations in 2020. Once the expansion areas are occupied, the concession area will span an area of approximately 70 hectares with three berths, which will add 2.4 million TEUs a year to the port’s existing capacity of 2.5 million.
The agreement includes the option for a further 600 metre of quay length in the future to allow for anticipated volume growth. With this the nominal annual handling capacity will increase to 3.5 million TEUs when all phases are complete, creating a new overall annual capacity of up to 6 million TEUs.
The global port operator giant is establishing a joint venture company in 2016 to operate the new Khalifa Port Container Terminal 2. As per the agreement, the joint venture company will be entitled concession rights of Terminal 2 for a span of 35 years, with a renewable period of 5 additional years. CSPL SPV will have the controlling stake in the joint venture company.
“The signing of the concession agreement between Abu Dhabi Ports Company and Cosco Shipping Ports Limited will significantly expand trade between China, the UAE and the broader region. It will greatly enhance the UAE and Abu Dhabi’s role as a key logistics and trading hub, between East and West and will also serve to further diversify the UAE’s dynamic and growing economy,” said Dr. Al Jaber.
