Abu Dhabi Ports Inks Concession Deal for Fujairah Port
- Business & Finance
Port developer and operator Abu Dhabi Ports has entered into a 35-year concession agreement to develop, manage and operate the port of Fujairah.
Under the agreement, the parties said they would also establish a new operational arm, the Fujairah Terminals, which would be owned by Abu Dhabi Ports. Through the establishment of Fujairah Terminals, the agreement will grant Abu Dhabi Ports the exclusivity to enhance existing infrastructure in addition to managing all container, general cargo, RoRo and cruise ships in the port.
Furthermore, the deal covers deepening of berths to -16.5 metres as the port prepares to welcome larger vessels, building a 300,000 sqm yard of storage space, as well as an additional 1 kilometre quay to accommodate the expected growth in the number of ships arriving to the port.
Abu Dhabi Ports will also work on equipping Fujairah Ports with new and advanced equipment such as STS post-panama quay cranes, RTG’s as well as new IT systems.
The port operator is set to launch the development of berths and yards in Fujairah in 2018, during which the port is expected to remain operational. Additional capacity and new quay cranes are scheduled to begin operations in 2021.
Fujairah is aiming to handle 1 million TEUs and 700,000 tons of general cargo by 2030.
The deal comes two months after the Dubai-based port operator DP World reached an agreement with the port of Fujairah to terminate the concession deal the parties entered into in 2005.
The previous concession contract was on a build, operate and transfer basis (BOT) to expand and develop the Fujairah Container Terminal at the port for container handling and transshipment.
Following the termination deal both parties have completed the transfer of operations from DP World to the port of Fujairah authorities.
World Maritime News Staff