CMA CGM DRAWS LINE IN THE SAND…

The Marseille-based container shipping line has signed a 35-year concession deal with Abu Dhabi Ports Group (ADPG) to jointly develop a new container terminal at Khalifa Port.
This joint-venture arrangement will see CMA CGM’s port operating subsidary, CMA CGM Terminals, take a 70 per cent share, with ADPG taking the remaining 30 per cent.
Phase I of the project will see a combined AED540 million (US$154 million) investment being made. Construction is scheduled to commence before the end of 2021, with operations starting during 2024.
This initial phase will include 800m of quay length and an estimated capacity of 1.8 million TEU per annum. ADPG is responsible for developing the supporting marine works and infrastructure, which include up to 1200m of quay wall, a 3800m breakwater, a rail platform and 700,000m2 of supporting terminal yard.
A joint statement from both CMA CGM and ADPG confirms: “The terminal will provide CMA CGM with a new regional hub and will enable development of 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.”
CMA CGM will join fellow liner heavyweights Mediterranean Shipping CO (MSC) and Cosco Shipping (Cosco) in becoming an equity partner in a modern, largescale container terminal in Abu Dhabi.
It seems likely that the Ocean Alliance’s hub activities will become more centralised at Port Khalifa, in view of the fact that CMA CGM and Cosco are the major ocean carriers in the grouping.
The addition of CMA CGM is expected to see current Port Khalifa volumes of 3.2 million TEU per annum rise significantly. Looking to the future, it will be interesting to see if Maersk Line follows the other largest container shipping lines and moves to Abu Dhabi.