MSC Inks USD 1 Bn Khalifa Port Terminal Deal
- Business & Finance
Swiss-based shipping major Mediterranean Shipping Company (MSC) has inked a 30-year concession agreement with Abu Dhabi Ports to establish a new container terminal at Khalifa Port, UAE.
The deal is worth AED 4 billion (USD 1.09 billion) and will include investments in additional 13 ship-to-shore cranes, bringing the total to 25, over the next two years.
In addition, the development will see the berths at Khalifa Port deepened in order to make them capable of receiving the largest shipping vessels in the world.
Overall, the capacity of Khalifa Port is expected to increase from 2.5 million TEUs to 8.5 million TEUs in five years.
“These agreements cement the UAE and Abu Dhabi’s position as a global trading, shipping and logistics hub. This agreement will also promote economic growth and increased investment through the rise in container traffic.
“The UAE has been successful in implementing large infrastructure projects, and this has been due, to a large extent, to the presence of the world’s most technologically advanced ports, modern and integrated transportation networks, as well as its strategic location as a central hub between Asia, Europe and Africa – attracting emerging and developed markets with excellent prospects for growth,” Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Abu Dhabi Ports commented.
“ his agreement comes with multiple strategic benefits to customers and companies working shipping and logistics, including faster and more efficient services, easier access to more markets in the region and the world. In addition to, attracting more foreign direct investment to Abu Dhabi and the region, especially in the Khalifa Industrial City and KPFTZ, the largest of its kind in the Middle East,” Captain Mohamed Juma Al Shamisi, Chief Executive Officer at Abu Dhabi Ports, said.
“TiL welcomes the opportunity to co-invest with Abu Dhabi Ports in further developing Khalifa Port, in order to provide MSC and its shipping alliance partners with efficient terminal capacity in this strategic location. We look forward to collaborating on the project in the coming years,”Ammar Kanaan, Chief Executive Officer of MSC’s cargo container terminals arm, Terminal Investment Limited (TiL), said.