Terminal supports five-year drive by Abu Dhabi Ports to increase future handling capacity at Khalifa Port to 9.1mn TEU
COSCO Shipping Ports (CSP) and Abu Dhabi Ports recently inaugurated the CSP Abu Dhabi Terminal at Khalifa Port; positioning Abu Dhabi as the regional hub for COSCO’s global network of 36 ports and further connecting the Emirate to the major trade hubs along China’s Belt and Road Initiative (BRI).
The deepwater, semi-automated container terminal includes the largest Container Freight Station (CFS) in the Middle East, covering 275,000sqm. The upgraded facility offers facilities for full and partial bonded container shipments, the full range of container packing services, short-term warehousing for de-consolidated cargo as well as easy connectivity with container terminals in Khalifa Port.
The terminal is also the first international greenfield subsidiary of COSCO Shipping Ports, a subsidiary of China COSCO Shipping, one of the the largest integrated shipping enterprises in the world. CSP has so far invested AED1.1bn (US$ 300mn) in capital expenditure on construction and machinery at the terminal.
In line with Abu Dhabi Economic Vision 2030, Abu Dhabi Ports has earmarked AED 10bn in investment that will increase capacity at Khalifa Port from the current 5mn TEU to 9.1mn TEU, which also includes boosting capacity at Terminal 1 to more than 5mn TEU.
The CSP Abu Dhabi Terminal has a design capacity of 2.5mn TEU and will begin with a handling capacity of 1.5mn TEU, with 1200m of quay. The water depth of the terminal is 16.5m, allowing it to accommodate mega-vessels typically carrying in excess of 20,000 TEU.
Glittering inaugural ceremony
The terminal was formally inaugurated at a ceremony at Khalifa Port by Sheikh Hamed Bin Zayed Al Nahyan, Chairman of Abu Dhabi Crown Prince Court, and was also attended by Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman of the Department of Transport; Ning Jizhe, Deputy Director of China’s National Development and Reform Commission (NDRC).
Also present on the occasion were Dr. Sultan Ahmed Al Jaber, the UAE Minister of State and Chairman of Abu Dhabi Ports; He Jianzhong, Deputy Minister of Ministry of Transport of the PRC; Ni Jian, Ambassador of the PRC in the UAE; Captain Xu Lirong, Chairman of China COSCO Shipping Corporation; Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports; Zhang Wei, Vice Chairman and Managing Director of COSCO Shipping Ports in addition to high profile VIPs.
“The CSP Abu Dhabi Terminal is among key projects that will have a positive impact across a number of sectors, including industry, trade, services, and logistics,” noted Sheikh Hamed Bin Zayed Al Nahyan.
“The decision by COSCO Shipping Ports to invest in Abu Dhabi is a testament to our strategic location, attractive business environment and supportive regulation. We believe that it will open the door to more foreign direct investment in the Emirate,” observed Sheikh Theyab Bin Mohammed Al Nahyan.
“The completion of CSP Abu Dhabi Terminal is just another milestone in the successful partnership between China and Abu Dhabi, and it will prove to be a fruitful cooperation between the two countries,” remarked Captain Xu Lirong, Chairman, COSCO Shipping.
“Abu Dhabi’s strategic location as a gateway to the MENA region makes it an important partner for China’s Belt and Road Initiative, connecting Asia with Africa and Europe via land and maritime networks along six corridors,” affirmed Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.
Growing UAE-China trade ties
China is the UAE’s largest non-oil trade partner. In 2017, bilateral trade between the two countries increased by 15% to more than US$ 53bn, representing 15% of the UAE’s total foreign trade. During the same period the UAE accounted for nearly 30 per cent of total Chinese exports to Arab countries and about 22% of total Arab-China trade. Bilateral trade is expected to increase to US$ 70bn a year by 2020.
The new terminal will ease the way for companies seeking to establish, expand or enhance their trade by using local manufacturing, warehousing or logistics operations within Abu Dhabi and, through them, service regional, Middle Eastern, African and international markets.
In addition to attracting investors from Eastern Asia, it will increase Khalifa Port’s competitiveness and act as a catalyst for investment by foreign companies to set up in the free zone of Khalifa Industrial Zone Abu Dhabi (KIZAD), the region’s largest industrial, manufacturing and logistics hub and free zone. KIZAD, which comprises 410sqkm, has to date attracted more than 200 tenants and AED 65bn (US$ 17.7bn) in investment.
CSP Abu Dhabi Terminal is the result of the 35-year agreement between Abu Dhabi Ports and COSCO Shipping Ports whose terminal portfolio covers the five main port regions in Mainland China, Southeast Asia, Europe, the Mediterranean and the Black Sea.
The new terminal is part of Abu Dhabi Ports’ five-year growth strategy to increase Khalifa Port, with its two container terminals, to a combined total capacity of 9.1mn TEUs. The addition of CSP Abu Dhabi Terminal has already moved Khalifa Port up from being the 89th largest container port in world rankings to within the top 25.
