Full Steam Ahead For Abu Dhabi Ports Company

Traditionally, the UAE has staunchly relied on ports to develop its flourishing trade economy. And now, with the world’s centre of gravity increasingly shifting away from the west to the east, the country is aiming to capitalise on its geographical location to establish itself as a major maritime hub.

“The UAE and its neighbours are fast becoming a more cohesive maritime power that will provide a vital link between the Far East and Australasia, Europe and North America,” said Chris Hayman, chairman of Seatrade – organisers of the recent World Ports & Trade Summit 2013 in Abu Dhabi.

“And with over $36 billion investment into port transportation in some of the Gulf’s key destinations, the future potential for trade growth is unlimited,” he added.

Adhering to its proposed launch-date, the Abu Dhabi Ports Company (ADPC) inaugurated its multi-billion dollar Khalifa Port in December 2012, adding to the emirate’s existing Mina Zayed port.

Launching the new port, which will have the capacity to handle 15 million TEU per year upon completion in 2030, was absolutely vital, according to
Captain Mohammad Al Shamsi, executive vice-president, ADPC.

“The total capacity of Mina Zayed is 750,000 TEU and in both 2011 and 2012, we have been handling more than its capacity – 760,700 TEU in 2011 and 780,700 TEU in 2012.

“So the demand is there – actually we overspilt Abu Dhabi cargo to other ports because we couldn’t cater for them in Mina Zayed,” he said.

In its initial phase, Khalifa port will be able to handle 2.5 million containers a year and 12 million tonnes of general cargo. The emirate has already shifted the containers business completely from Mina Zayed to Khalifa, said Captain Shamsi.

“Now the difference is that we have direct services to more than 60 destinations.”

Neighbouring Dubai is also ramping up facilities at the Jebel Ali Port, which will see its terminal three capacity expanded to 19 million TEU per annum by 2014.

However, the two ports will not compete against each other, according to Captain Shamsi.

“We are complementing each other. There is so much demand – with the centre of gravity shifting to the east, there is demand for the right infrastructure. And it is the Middle East, the GCC and the UAE in particular who can offer this,” he said.

Alongside Khalifa port, the Khalifa Industrial Zone Abu Dhabi (Kizad), also part of ADPC’s Dhs26.5 billion megaproject, is swiftly picking up pace and has signed deals with 50 companies so far, Khaled Salmeen, its CEO and managing director revealed.

Salmeen said that the companies that had signed the agreements were at different stages of their engineering.

“Emirates Aluminium (Emal) is already operational and in phase II. They started simultaneously because they are building a massive project, spread across six square kilometres, even bigger than Manama,” he said.

Kizad, launched in 2010, stretches across 417 square kilometers and targets the aluminium, steel, trade and petrochemicals industries, among others.

According to Salmeen, the companies that have agreed to come on board include a mix of local and international ones.

“After doing market research, we narrowed six countries as focus markets apart from the UAE,” he said. “In the east it was China, South Korea and India and in the west it was Germany, UK and the US.

“We have been able to launch in all of those markets over the last two years, and a lot of our market now is coming from India and Germany, which were the most receptive and financially ready to go to the next stage,” he added.