Cosco Wins Concession of Khalifa Port’s New Terminal
- Business & Finance
Port developer and operator Abu Dhabi Ports has awarded a 35-year concession to build and operate a new container terminal at Khalifa Port to China-based Cosco Shipping Ports Limited – Abu Dhabi (CSPL SPV).
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 is expected to commence operations in the first half of 2018 and the later 400 metres is set to commence operations in 2020.
Once the expansion areas are occupied, the concession area will span an area of approximately 70 hectares with 3 berths, which will add 2.4 million TEUs a year to the port’s existing capacity of 2.5 million TEUs.
The agreement includes the option for a further 600 metre of quay length in the future to allow for anticipated volume growth, 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 to operate the new Khalifa Port Container Terminal 2 in Khalifa Port, which will be entitled concession rights of the terminal 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, Abu Dhabi Ports said.
“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,” Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of ADPC, said.