Abu Dhabi Ports inked a 30 year concession with MSC and will see the Geneva-based company make a total investment of AED4bn ($1.09bn) through Terminal Investments Ltd (TiL).
The agreements were signed by Mohamed Juma Al Shamisi, ceo at Abu Dhabi Ports and Diego Aponte, president and ceo of MSC Group.
The AED4bn investment will be made over the lifetime of the concession and will include 12 quays over the next two years, bring the port’s total number to 25, and deepening of berths so it can handle the world’s largest containerships.
“Abu Dhabi Ports has successfully attracted two of the world largest companies in the field of shipping and container handling to develop a regional hub at Khalifa Port. Over the next five years, the capacity of two container terminals at Khalifa Port will increase to more than 8.5m teu annually," said Abu Dhabi Ports ceo Al Shamisi.
The port currently has a capacity of 2.5m teu, and is set to increase 5.3m teu by 2020 and is a semi-automated facility. Learn more about smart ports at Seatrade Maritime Middle East in October 2018.
Witnessing the signing (pictured above) His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and chairman of Abu Dhabi Ports commented: “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.”
Khalifa Port is the flagship of Abu Dhabi Ports, which owns 50% of Abu Dhabi Terminals, which in turn manages Khalifa Port Container Terminal.
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MSC’s Aponte commented: “We are confident that with this investment we will continue to ensure a high level of service for our customers and have the capacity to grow the scale of our operations in the UAE.”
MSC operates the world’s second largest container line and partners the largest Maersk Line in the 2M Alliance.
Ammar Kanaan, ceo of TiL, 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.”
Kanaan was appointed ceo of TiL last month and led the development and operations of MSC’s joint venture terminal in King Abdullah Port, Saudi Arabia.