Abu Dhabi Ports and COSCO Shipping Ports signed cooperation dealStaff Writer | September 30, 2016
Abu Dhabi Ports signed a container terminal concession agreement with COSCO Shipping Ports Abu Dhabi (CSPL SPV), a wholly-owned subsidiary of COSCO Shipping Ports, one of the leading container terminal operators in the world and a subsidiary of China COSCO Shipping Corporation.
Shipping COSCO Shipping Ports will operate a container terminal
The first 800 metres of the quay length (and the corresponding Concession Area) is expected to commence operations in H1 2018 and the later 400 metres (and the corresponding Expanded Concession Area) is expected to commence operations in 2020. Once the expansion areas are occupied, the Concession Area will span an area of approximately 70 hectares with 3 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.
The global port operator giant is establishing a joint venture company in 2016 to operate the new Khalifa Port Container Terminal 2 in Khalifa Port, one of the world’s fastest growing container ports and a leading hub for the Middle East, Africa and South Asia (MEASA) region.
The joint venture company will be entitled concession rights of Khalifa Port Container Terminal 2 for a span of 35 years, with a renewable period of 5 additional years. CSPL SPV will have the controlling stake in the joint venture company. ■