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Cosco sign 35 year container terminal concession at Abu Dhabi’s Khalifa Port

Cosco sign 35 year container terminal concession at Abu Dhabi’s Khalifa Port
Cosco Shipping Ports Ltd (CSPL SPV) has won a 35-year concession with a five year option to operate a container terminal at Abu Dhabi Ports’ flagship Khalifa Port.

The deal will see CSPL, a subsidiary of China COSCO Shipping Corporation Limited, eventually operate 1,200 m of quay wall (18m depth alongside) an adjacent yard at the historic city centre port.

Cosco’s Khalifa Port Container Terminal 2 (KPCT 2) will span approximately 70 hectares with 3 berths and will add 2.4m teu a year to Khalifa Port’s existing capacity of 2.5m teu once the first two phases of the development are completed.

The first 800 m of quay and the corresponding yard is earmarked to be operational in the first half of 2018 with the additional 400 m to come on stream in 2020.

A further 600 m of quay length is written into the agreement and will “allow for anticipated volume growth”, bringing nominal annual handling capacity at KPCT 2 to 3.5m teu and creating a new overall annual capacity at Khalifa Port of up to 6m teu.

Cosco Shipping Ports Ltd is to establish a joint venture company to operate the new KPCT 2. Khalifa Port is already well established as the closest UAE rival to Dubai’s Jebel Ali Port as a key transhipment hub to the Middle East, Africa and South Asia (MEASA) region.

Abu Dhabi Ports (ADP) ceo, Captain Mohamed Juma Al Shamisi, and Zhang Wei, vc and md of Cosco Shipping Ports, signed the landmark agreement Wednesday in another boost to Abu Dhabi Vision 2030, the UAE capital’s bold framework to diversify its economy.

“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,” said H.E Dr Sultan Ahmed Al Jaber, UAE Minister of State and chairman of Abu Dhabi Ports.

“With the development of China’s ‘One Belt One Road’ strategy there is boundless potential for expanding the UAE-China relationship further. We look forward to closer collaboration with China and to creating even greater economic progress for both our nations in the years ahead.”

China Cosco Shipping Corporation president Wan Min said Khalifa Port provided a “unique geographical advantage for the development of terminal and logistics businesses” along the OBOR or “New Silk Road”. Besides Khalifa Port, Cosco Shipping Ports operates a global network of 46 terminals and 169 berths across mainland China, Hong Kong, Taiwan, Korea,  Singapore, Greece, Turkey, Egypt, Belgium and the US. 

“This investment is expected to strengthen Cosco Shipping Ports’ sustainable growth and create value for our shareholders,” he said.

“With the strong support from the large container shipping fleet of Cosco, Cosco Shipping Ports will dedicate its efforts to develop KPCT 2 as a hub of the upper [Arabian] Gulf region in the Middle East for international container shipping liners.  We are confident that the project will stimulate the implementation of ‘One Belt One Road’ initiative, and will promote strategic cooperation between China and the UAE.”

The KPCT 2 deal is part of the broader developments at the Khalifa Port which includes a new terminal booking, tracking and transaction system for sea and land based users, advanced ro ro facilities, new liner calls, the development of a regional liner hub and transhipment business to South Asia, as well as the addition of approximately 14.5m sq m now leased in the adjacent Khalifa Industrial Zone (KIZAD).