AD Ports and French Group ink partnership, to invest Dhs570 million in new terminal at Khalifa Port
A new terminal is to be established in Khalifa Port, which will be managed by a joint venture owned by CMA CGM’s subsidiary CMA Terminals (with a 70% stake) and AD Ports Group (30% stake). The partners are expected to commit approximately Dhs570 million (USD154 million) to the project.
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council and Chairman of the Abu Dhabi Executive Office, met with Rodolphe Saadé, Chairman and CEO of the France-based CMA CGM Group, which a global container transportation and shipping group.
In the meeting, His Highness reviewed the details of the partnership to be established between CMA CGM Group, which operates 49 port terminals in 27 countries via its subsidiaries CMA Terminals and Terminal Link, and AD Ports Group.
With construction starting in 2021, the new terminal is set to be handed over in 2024, with phase one including an initial quay length of 800m and an estimated annual capacity of 1.8 million TEUs.
AD Ports Group will be responsible for developing a wide range of supporting marine works and infrastructure, including up to a total of 1,200mof quay wall, a 3,800m breakwater, a fully built-out rail platform, and 700,000sqm of terminal yard.
HE Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “The landmark agreement with CMA CGM Group is a prime example of those continued efforts and one that will significantly accelerate trade and the development of industry in the UAE and beyond. “
He added: “As well as driving increased trade volumes through our port and elevating the UAE’s economic development, we expect 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.
“In all, we project that over the next five years the CMA Terminals joint venture will drive further development of the Khalifa Industrial Zone Abu Dhabi (KIZAD), while simultaneously contributing significantly to national GDP.” CMA CGM Group is the third of the world’s top-four shipping entities to join forces with Abu Dhabi’s facilitator of trade, logistics and industry.
Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group, said: “The addition of a new container terminal at Khalifa Port, which will be managed by a joint venture formed in collaboration with CMA Terminals, opens a new chapter in our organisation’s efforts to become a key facilitator of global trade, and elevates Abu Dhabi’s standing as both a regional and an international hub for maritime trade.”