Abu Dhabi to spend US$1b on Khalifa Port expansion
THE capacity of Abu Dhabi's Khalifa Port is to be increased by 50 per cent by the end of 2020 as part of a AED3
THE capacity of Abu Dhabi's Khalifa Port is to be increased by 50 per cent by the end of 2020 as part of a AED3.8 billion (US$1 billion) expansion of the emirate's main port.
The oil-rich capital of the United Arab Emirates is investing billions of dollars in infrastructure to reduce the emirate's dependence on oil and gas and the port is a key part of its plans, reports Reuters.
Khalifa Port, which opened in 2012, is between Abu Dhabi city and the financial centre of Dubai where the region's largest transshipment port Jebeli Ali is located.
The container port's handling capacity will increase to 7.5 million TEU a year, up from 5 million, with a AED1.6 billion investment from Abu Dhabi Terminals, owned by state-run Abu Dhabi Ports and Swiss-based Mediterranean Shipping Co (MSC).
'Khalifa Port always tries to be at the forefront and ahead of other ports,' said Mohamed al-Menhali, the port's acting director.
The port is expected to handle 2.5 million TEU this year, up from 1.7 million in 2018, according to state owner Abu Dhabi Ports.
The expansion will be partly self-financed with the rest raised through local banks, executives said. Khalifa Port will invest a further AED2.2 billion in developing the South Quay and Khalifa Port Logistics to be completed by the first quarter 2021.
The South Quay development comprises a three km quay-wall with 18.5 metres alongside draft for general cargo, ro-ro, and bulk usage. It will also include eight berths and 1.3 million square metres of the terminal yard.
The Khalifa Logistics expansion, for multi-purpose usage, will encompass a 3.1 km quay wall with an eight-metre draft, 15 berths, and land plots, which can be tailored to individual customers.
The port's CSP Abu Dhabi Terminals facility, which opened in April and is majority-owned by China's Cosco, has so far handled 330,000 TEU this year and is expected to handle over 800,000 in 2020, deputy CEO Naser Albusaaedi said. Its annual handling capacity is 2.5 million TEU.
A further 1 million TEU of capacity could be added to that facility, Mr Albusaaedi said, although no decision has been made.