A 35 year concession agreement between Abu Dhabi Ports and the Port of Fujairah has been signed.
As part of the agreement, the entities have announced the establishment of “Fujairah Terminals”, a new operational arm wholly owned by Abu Dhabi Ports.
The agreement was signed in the presence of H.H Sheikh Saleh Bin Mohammed Bin Hamad Al Sharqi, Chairman of the Department of Industry and Economy, Fujairah & Chairman of the Board of Port of Fujairah, and H.E Dr. Sultan Ahmed Al Jaber, Cabinet Member, Minister of State and Chairman of Abu Dhabi Ports. Signing the agreement, which took place at the ruler’s palace, was Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports and Captain Mousa Murad, General Manager of Port of Fujairah.
Commenting on the occasion, H.H Sheikh Saleh Bin Mohammed Bin Hamad Al Sharqi said: “This agreement comes in line with the directives of H.H Shaikh Hamad Bin Mohammad Al Sharqi, Supreme Council Member and Ruler of Fujairah, to further develop the Port of Fujairah and support the strategic role it plays in enhancing the UAE’s economic growth. We look forward to working closely with Abu Dhabi Ports in making this strategic partnership mutually beneficial both in the short and long term and enhancing Fujairah Port’s capabilities and strengths both regionally and internationally”.
His Excellency Dr. Sultan Ahmad Al Jaber said: “”Abu Dhabi Ports will utilise all its capabilities and expertise to enable Fujairah Ports to achieve its objectives, based on best practices. In particular we plan to leverage the geography of this strategic port to contribute to the development of the UAE’s commercial and tourism sectors.”
The announcement is testament to Abu Dhabi Ports’ efforts to strengthen the development and operation of ports and terminals across the UAE and its contribution to the growth of a diversified, knowledge-based economy.
Through the establishment of ‘Fujairah Terminals’, the agreement will grant Abu Dhabi Ports the exclusivity to enhance existing infrastructure in addition to managing all Container, General Cargo, RoRo and Cruise Ships in the Port. It further extends this exclusivity throughout the emirate of Fujairah for Container business. The agreement also includes deepening of berths to enable the Port, which already serves clients and companies in the entire Gulf Region, Indian Ocean and Indian Subcontinent, to cater to larger vessels.
Abu Dhabi Ports will be investing in the infrastructure of Fujairah Ports, further enhancing its capabilities. Development includes deepening of berths to -16.5 metres to allow bigger vessels to come to the Port of Fujairah, building an approximate 300,000 sqm yard of storage space, as well as an additional 1km quay to accommodate the expected growth in the number of ships arriving to the port, increasing shipping operations in the process.
Abu Dhabi Ports will also work on equipping Fujairah Ports with new and advanced equipment such as STS post panama quay cranes, RTG’s as well as new IT systems, bringing efficiency to operations and better equipping it to meet the needs of global shipping companies and service operators in line with the highest international standards. Maqta Gateway, a wholly owned subsidiary of Abu Dhabi Ports will be engaged to develop a Port Community System that links port communities with various departments, facilities and operations.
Abu Dhabi Ports will commence with the development of berths and yards in 2018. The port will remain operational during this time to service existing and new clients. Additional capacity and new quay cranes will begin operations in 2021.
The Port of Fujairah is the only multi-purpose port on the Eastern seaboard of the United Arab Emirates and is strategically located on the UAE’s Indian Ocean coast, close to the east west shipping routes. Its location offers shipping lines efficient transshipment options and an excellent platform to serve the entire Gulf Region, the Indian Subcontinent, Pakistan, the Red Sea, East Africa and several neighbouring countries.
The port’s capacity is expected to reach 1 million TEUs and 700,000 tons of general cargo by 2030.