CSPL SPV, COSCO SHIPPING Ports Limited’s wholly-owned subsidiary, will have the controlling stake in the joint venture company that will operate the new Khalifa Port Container Terminal 2.
COSCO SHIPPING Ports Limited’s wholly-owned subsidiary, CSPL SPV, entered into a concession agreement with Abu Dhabi Ports Company Wednesday, the companies jointly announced.
CSPL SPV and Abu Dhabi Ports are creating a joint venture company this year to operate the new Khalifa Port Container Terminal 2.
The joint venture company, which CSPL SPV will have the controlling stake in, will be entitled concession rights of Khalifa Port Container Terminal 2 (KPCT2) for 35 years, with a renewable period of five additional years.
KPCT2 will have a draft depth of 18 meters with 1,200 meters of quay wall adjacent to the land.
The first 800 meters of quay length (and the corresponding concession area) is expected to commence operations in the first half of 2018, while the later 400 meters (and the corresponding expanded concession area) is anticipated to commence operations in 2020.
The concession area will then span to about 70 hectares with three berths, adding 2.4 million TEUs a year to the port’s existing capacity of 2.5 million TEUs.
In addition, the agreement includes the option for a further 600 meters of quay length, which would boost nominal annual handling capacity at the terminal to 3.5 million TEUs, creating a new overall annual handling capacity at the port up to 6 million TEUs.
“The signing of the concession agreement between Abu Dhabi Ports Company and COSCO Shipping Ports Limited will significantly expand trade between China, the United Arab Emirates and the broader region,” said H.H. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Abu Dhabi Ports. “The new volume will greatly enhance the UAE and Abu Dhabi’s role as a key logistics and trading hub, between East and West.”
In addition to Khalifa Port, COSCO SHIPPING Ports Limited operates 46 terminals and 169 berths across mainland China, Hong Kong, Taiwan, Korea, Singapore, Greece, Turkey, Egypt, Belgium and the United States.
COSCO SHIPPING Ports gains terminal concession in UAE
