UAE terminal concession

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. It will open in 2024 with an initial capacity of 1.8m TEUs

The terminal 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 US$154m to the project.

Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group, said: “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.”

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.

Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group, said that the project with CMA CGM “will make Khalifa Port a hub for three of the world’s top four shipping companies”.

He added: “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.”

The CMA CGM Group currently operates 49 port terminals in 27 countries via its subsidiaries CMA Terminals and Terminal Link.