Abu Dhabi Ports and China's Cosco ink concession deal
Captain Mohamed Juma Al Shamisi and Zhang Wei signed the agreement in Abu Dhabi on Wednesday
Abu Dhabi Ports signed a 'milestone' agreement with Cosco Shipping Ports Limited on Wednesday.
As per the agreement, top container terminal operator Cosco Shipping has bagged a 35-year concession to build and operate a new container terminal at Khalifa Port.
Cosco will establish a joint venture company to operate the Khalifa Port Container Terminal 2 and will have the controlling stake. It will be entitled concession rights with a renewable period of five additional years.
UAE Minister of State and Abu Dhabi Ports chairman Dr Sultan Ahmed Al Jaber said the agreement will boost bilateral relations.
"This is a new milestone in our relations with China. The agreement will expand trade between both the countries," Al Jaber said.
"With 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 create even greater economic progress for both our nations in future," he added.
Abu Dhabi Ports CEO captain Mohamed Juma Al Shamisi and vice-chairman and MD of Cosco Shipping Ports Limited Zhang Wei inked the agreement.
Accordingly, Cosco Shipping Ports will operate a container terminal with a draft depth of 18 metres, with 1,200 metres of quay wall and adjacent land. The first 800 metres of the quay length is expected to commence operations in first half of 2018 and the later 400 metres is expected to commence operations in 2020.
Once the expansion areas are occupied, the concession area will span an area of 70 hectares with three berths, which will add 2.4 million TEUs a year to the port's existing capacity of 2.5 million TEUs.
The agreement includes the option for a further 600 metre of quay length in the future to allow for anticipated volume growth, the nominal annual handling capacity will increase to 3.5 million TEUs when all phases are complete, creating a new overall annual capacity of up to 6 million TEUs.
Al Shamisi said it's a long-term concession agreement to develop and operate the state-of-art new terminal.
"The Khalifa Port is continuously growing and expanding in every aspect - adding value for its key stakeholders and the international community. Through the new synergy, Cosco will bring additional volumes to the Port - adding to Abu Dhabi Terminals' on-going business in Abu Dhabi. It will also ensure that the Khalifa Port maintains a competitive environment in serving the shipping industry as well as local business. Cosco will increase Abu Dhabi Ports' competitiveness on a global scale."
China Cosco Shipping Corporation president Wan Min said the Khalifa Port has a unique geographical advantage for the development of terminal and logistics businesses.
"Khalifa Port Container Terminal 2 will be the second overseas terminal in which Cosco Shipping Ports holds the controlling interest. This investment is expected to strengthen Cosco Shipping Ports' sustainable growth and create value for our shareholders.
"With the strong support from the large container shipping fleet of Cosco Shipping Group, Cosco Shipping Ports will dedicate its efforts to develop Khalifa Port Container Terminal 2 as a hub of the Upper 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."