CMA CGM Group and Abu Dhabi Ports have signed a 35-year concession agreement for a new terminal of 1.8 million TEU capacity in the Khalifa Port.
According to the deal, the new terminal, which will cost US$154 million and will be established in the first semi-automated container port in the Gulf Cooperation Council (GCC) region, Khalifa Port, will be managed by a joint venture owned by CMA CGM’s subsidiary CMA Terminals and Abu Dhabi Ports, with 70% and 30% stake, respectively.
With construction starting in 2021, the new terminal is anticipated to be ready in 2024 with an initial quay length of 800 metres and an estimated annual capacity of 1.8 million TEU, in phase one.
Abu Dhabi Ports will be responsible for developing a range of supporting marine works and infrastructure, including a total of 1,200 metres of quay wall, a 3,800-metre breakwater, a full built-out rail platform, and a terminal yard of 700,000m².
CMA CGM believes that the new terminal will provide them with a new regional hub and will enable them to develop their services between Abu Dhabi and South Asia, Western Asia, East Africa, Europe, the Mediterranean as well as the Middle East and the Indian Subcontinent.
“The ambitious project we are launching today in Abu Dhabi marks an important milestone in CMA CGM’s development strategy in the region,” said Chairman and Chief Executive Officer of the CMA CGM Group, Rodolphe Saadé.
Additionally, the terminal will contribute to enhancing Khalifa Port’s position, boosting the region’s economy and accelerating trade flows in and out of Abu Dhabi, while it will enable the French company to expand its shipping and logistics network in the region of Gulf Cooperation Council, according to a statement.
Chairman of Abu Dhabi Ports, H.E. Falah Mohammed Al Ahbabi talked about the ambitions driven by the agreement, expecting that “the facility’s capacity and added trade links with other high-profile port destinations will drive investment into local businesses and our industrial zones, fast-track the development of key sectors including manufacturing and logistics, and raise demand for manpower.”
Moreover, the Group CEO of Abu Dhabi Ports, Captain Mohamed Juma Al Shamisi pointed out, “the addition of another leading worldwide shipping group company, will make Khalifa Port a hub for three of the world’s top four shipping companies.”
“This addition creates opportunities to open trade routes to new markets in Europe, Africa, Western Asia, and South Asia, while at home, we expect the presence of the shipping line terminal, which will link directly to Khalifa Port’s upcoming rail terminal and utilise its services to accelerate trade flows moving in and out of the UAE,” he noted.
