DP World pens $80 million lease agreement for chemical terminal
DP World, UAE Region, has signed a 30-year lease agreement with chemical distributor Petrochem Middle East for the expansion of a chemical distribution terminal.
As disclosed, Petrochem Middle East will invest between $80 million to $90 million in developing a chemical terminal on Quay 7, adjacent to the dedicated chemical handling berth within Jebel Ali Port.
With this project, Petrochem proposes to build 24-30 bulk chemicals storage tanks of different sizes and some stainless-steel tanks. It will also include a day tank farm, tanker and truck loading facility, nitrogen generation plant and automatic drum filling machines.
Furthermore, the terminal will have a capacity of approximately 40,000 cubic meters for the storage of various products.
The 400,000 square feet (approximately 37,161 square meters) facility is expected to be completed by the third quarter of 2023 and will provide chemical raw materials in large volumes to industries coming in the UAE, according to the partners.
“The UAE and the Middle East region for years have been recognised as a thriving hub for the petrochemical industry. Despite the highly unstable market due to the pandemic, over the course of 2020, the GCC’s chemical output expanded by 1.5 per cent compared to a global decline of 2.6 per cent,” Abdulla Bin Damithan, CEO & Managing Director, DP World – UAE Region and Jafza said.
He added that “the petrochemical industry is a priority sector for the country and the region, whereas Jafza, due to its location, is a strategic access point to the Middle East, Africa and South Asia, is contributing around 70 per cent of the UAE’s foreign trade in petrochemical products.“
Yogesh Mehta, CEO, Petrochem Middle East concluded that with this latest project, the company expects “short term and long-term gains of about 10-15 per cent of the investment.”