New Angolan Joint Venture to modernise local and regional logistics services
AD Ports Group has signed several agreements with Unicargas and Multiparques leading to securing a 20-year concession agreement (extendable for another 10 years) with the Luanda Port Authority for the operation and upgrade of the existing Luanda multipurpose port terminal in Angola.
The agreements with Unicargas and Multiparques, well-known logistics and transport companies in the country, saw the Group acquire an 81% stake in a joint venture that will operate the terminal, and a 90% stake in another joint venture that will serve the facility and the broader Angolan logistics market.
AD Ports Group has committed US$ 251mn towards the modernisation of the terminal and development of the logistics business over the next three years (2024-2026), with this investment potentially increasing to US$ 379mn over the concession term and in line with market demand.
Maritime Gateway
Serving as Angola’s dominant maritime gateway along the corridor, the Port of Luanda plays an important role in Angola’s domestic economy by handling more than 76% of the country’s container and general cargo volumes.
In addition, it serves as one of the main transhipment hubs for Central-West Africa by enabling maritime trade access to land-locked countries, including the Democratic Republic of Congo and Zambia.
“This collaboration marks a significant milestone in our mission to modernise infrastructure and expand global trade access, promising a prosperous future for Angola and its partners,” affirmed Ricardo Daniel Sandão Queirós Viegas de Abreu, Minister of Transport, Angola.
“Supported by the vision of our wise leadership, the multipurpose terminal will be modernised to attract business from leading global shipping lines and offer the highest levels of service efficiency and quality, thereby benefitting our nations, partners, stakeholders and customers,” remarked Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
Transformative opportunity
“At Unicargas, we view our partnership with AD Ports Group as a transformative opportunity to leverage global expertise and resources, to accelerate the modernisation and expansion of the Port of Luanda and logistics infrastructure,” commented Joaquim Nazaré Pimentel da Piedade, Unicargas Management Committee Coordinator.
“We look forward to working with Unicargas and Multiparques’ local management and on-ground teams to leverage our respective expertise and capacities to ensure a smooth transition and bring new opportunities for business growth and development,” observed Mohamed Eidha Tannaf AlMenhali, Regional CEO, AD Ports Group.
Under the terms of the terminal concession agreement, the joint venture will significantly upgrade the existing multipurpose facility to a container and Ro-Ro terminal, encompassing an enlarged concession area (178,000sqm to 192,000sqm); an upgraded quay wall; additional ship-to-shore cranes, gantry cranes and other state-of-the-art equipment; expanded draft (9.5m to 16m); and modernised IT systems.
Redevelopment of the terminal is expected to be completed in Q3-2026, ultimately boosting its container handling volumes from 25,000 TEUs to 350,000 TEUs, and Ro-Ro volumes to over 40,000 vehicles.
With a population of 34.5mn, growing at a rate of 3.2%, and a GDP of US$ 74bn, the Republic of Angola is considered the sixth largest economy in sub-Saharan Africa and a sizable domestic market also requiring meaningful gateway cargo volumes, a press communique concluded.
