AD Ports Group and CMA CGM Group announce agreement to invest AED 570 million in new terminal at Khalifa Port
-
Under a
35-year concession agreement, the state-of-the-art terminal will open in 2024
with an initial capacity of 1.8 million TEUs
- Khalifa Port becomes
a regional hub for Three of World’s Top Four shipping companies
Abu
Dhabi, United Arab Emirates, September 09, 2021: AD Ports Group, the region’s premier facilitator of logistics,
industry, and trade, and France-based CMA CGM Group, a world leader in shipping
and logistics, have announced the signing of a 35-year concession agreement.
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 percent stake) and AD Ports
Group (30 percent stake). The partners are expected to commit approximately AED
570 million (USD 154 million) to the project.
A state-of-the-art terminal to
accompany the growth of Khalifa Port
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 metres 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. This
includes up to a total of 1,200 metres of quay wall, a 3,800-metre breakwater, a
fully built-out rail platform, and 700,000sqm 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.
With this major investment, the CMA CGM Group pushes
ahead with its global expansion strategy as a leading terminal operator. The
Group currently operates 49 port terminals in 27 countries via its subsidiaries
CMA Terminals and Terminal Link.
Khalifa Port, a hub for three of the world’s top four
shipping companies.
CMA CGM Group is the third of the
world’s top-four shipping entities to join forces with Abu Dhabi’s leading
facilitator of trade, logistics and industry. The agreement confirms Khalifa
Port’s standing as one of only a few major ports in the world providing hubs
for three of the world’s top shipping lines, as well as serving as an
instrumental part of the global maritime trade connecting markets from east to
west.
CMA CGM, a committed partner to the
UAE’s economy
The UAE and Abu Dhabi’s central
geographical location, at the center of international trade routes, enables the
CMA CGM Group to implement strategic development plans, strengthening its
position in the Gulf and providing the best services to meet its customers’
needs.
Present in the UAE for 15 years,
the CMA CGM Group employs around 450 people working within 10 offices to
provide customers with the best maritime and logistics service solutions. The
Group connects the UAE to the world with 13 weekly services to 9 ports.
H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group,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 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.”
"This agreement will aid us to realise our long-term
ambitions to become a top 10 ports, industrial, and logistics operator by
expanding our capacity and growth across the region and beyond. In all, we
project that over the next five years the CMA Terminals joint venture will
drive the further development of the Khalifa Industrial Zone Abu Dhabi (KIZAD),
while simultaneously contributing significantly to the national GDP.””
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.
"With 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.”
Rodolphe Saadé, Chairman and Chief Executive Officer
of the CMA CGM Group,
said: "The ambitious project we are launching today 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.”
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.”
Rodolphe Saadé, Chairman and Chief Executive Officer
of the CMA CGM Group,
said: "The ambitious project we are launching today 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.”