Under a 35-year concession agreement, the state-of-the-art UAE terminal will open in 2024 with an initial capacity of 1.8M TEU
Under the terms of the agreement, a new terminal will be established in Khalifa Port, the first semi-automated container port in the GCC region, 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 AED570M (US$154M) to the project.
With construction starting in 2021, the new terminal is set to be handed over in 2024 with, in phase 1, an initial quay length of 800 m and an estimated annual capacity of 1.8M TEU. AD Ports Group will be responsible for developing a wide range of supporting marine works and infrastructure. This includes up to 1,200 m of quay wall, a 3,800-m breakwater, a fully built-out rail platform, and 700,000 m2 of terminal yard.
The terminal will provide CMA CGM with a new regional hub and will enable the Group to develop its service offering between Abu Dhabi and south Asia, western Asia, east Africa, Europe and the Mediterranean as well as the Middle East and the Indian sub-continent.
AD Ports Group chairman HE Falah Mohammed Al Ahbabi said, “One of the key factors that has greatly contributed to the economic growth of Abu Dhabi and the UAE has been our stable economic environment that is ripe for foreign investment. Coupled with a competitive free zone and business engagement initiatives that aid foreign businesses in establishing a presence in the country with ease, the UAE has become a key investment destination among many of the world’s leading players seeking to extend their reach into the Middle East.
“This landmark agreement with the 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.”
“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.”
AD Ports Group, group chief executive Capt Mohamed Juma Al Shamisi said, “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. 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, while also encouraging CMA CGM Group’s customers to consider establishing a presence in Abu Dhabi.”
CMA CGM Group chairman and chief executive Rodolphe Saadé said, “The ambitious project we are launching in Abu Dhabi marks an important milestone in CMA CGM’s development strategy in the region. This state-of-the-art terminal will contribute to enhancing Khalifa Port’s position as a leading global hub and to boosting the region’s economy, accelerating trade flows in and out of Abu Dhabi.
“It will also enable our Group to expand its shipping and logistics network in the region, where we see a lot of growth potential.”
Riviera Maritime Media will provide free technical and operational webinars in 2021. Sign up to attend on our events page