CSP Abu Dhabi Terminal has a design capacity of 2.5 million TEU and an initial handling capacity of 1.5 million TEU
COSCO Shipping Ports (CSP), and Abu Dhabi Ports recently inaugurated 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 275,000 sqm. The state-of-the-art 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 the first international greenfield auxiliary of CSP, a subsidiary of China COSCO Shipping, the largest integrated shipping enterprise in the world. CSP has so far invested AED1.1 bn (US$ 300mn) in capital expenditure on construction and machinery at the terminal.
The partnership with CSP is part of a five-year strategy by Abu Dhabi Ports aimed at strengthening the maritime sector in Abu Dhabi and driving economic diversification, in line with Abu Dhabi Economic Vision 2030. Abu Dhabi Ports has earmarked AED10 bn (US$ 2.72bn) in investments that will increase capacity at Khalifa Port from the current 5 million TEU to 9.1 million TEU, which also includes boosting capacity at Terminal 1 to more than 5 million TEU.
The CSP Abu Dhabi Terminal has a design capacity of 2.5 million TEU and will begin with a handling capacity of 1.5 million TEU, with 1200 metres of quay. The water depth of the terminal is 16.5 metres, allowing it to accommodate mega-vessels typically carrying in excess of 20,000 TEU.
Star line-up
The terminal was formally inaugurated at an elaborate ceremony attended by Abu Dhabi’s royalty and elite at Khalifa Port. The galaxy of VIPs and high-ranking officials included HE Sheikh Hamed Bin Zayed Al Nahyan, Chairman of Abu Dhabi Crown Prince Court, and HE 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); HE Dr. Sultan Al Jaber, the UAE Minister of State and Chairman of Abu Dhabi Ports; He Jianzhong, Deputy Minister of Ministry of Transport of the People’s Republic of China (PRC); Ni Jian, Ambassador of the PRC in the UAE; Captain Xu Lirong, Chairman of China COSCO Shipping; Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports in addition to other high-ranking officials.
“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,” affirmed Sheikh Hamed.
“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,” asserted HE Sheikh Theyab.
“The leadership in China and UAE will continue to cooperate in more flagship projects and jointly contribute to ‘Belt and Road Initiative’, remarked Ning Jizhe.
“CSP Abu Dhabi Terminal connects Khalifa Port to COSCO’s global network, making it not only one of the largest ports across the Middle East and Indian subcontinent, but a global maritime hub,” commented Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.
Growing bilateral trade
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 14.7% of the UAE’s total foreign trade. During the same period the UAE accounted for nearly 30% of total Chinese exports to Arab countries and about 22% of total Arab-China trade. Bilateral trade is expected to increase to US$ 70 bn 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 410 sqm, has to date attracted more than 200 tenants and AED 65bn (US$ 17.7bn) in investment.
To date, at the time of writing, a total of 19 Chinese companies have signed lease agreements for land in the demonstration zone established within the Khalifa Port Free Trade Zone in August 2017 by the Chinese Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC).
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 9.1 million 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.
