CMA CGM and the Port of Djibouti are considering the development a new container terminal with an initial annual capacity of 2.4 million TEU, according to Reuters.
In an interview at the Africa CEO Forum in Abidjan, Ivory Coast, on March 27, 2018, Aboubaker Omar Hadi, Chairman of the Djibouti port, revealed the plans for the port's expansion, which would have an initial cost of $660 million.
The port authority, which is not considering any other potential partners, expects to award the concession in July, start the project in September 2018 and complete it in 28 months.
However, subsequent expansion phases plan to take the terminal to 4 million TEUs.
CMA CGM is the third largest container shipping company by vessel capacity, controlling, as of March 28, 11.6% of the market.
The port authority is also prepared to buy out DP World’s 33% stake in its Doraleh Container Terminal to settle its recent conflict with the port operator and avoid arbitration.
A DP World spokesperson confirmed to Reuters Africa on March 28 that it has not received an offer from Djibouti to buy its stake, adding that it would consider it illegal if any party entered into any agreement or arrangement with the Djiboutian government related to the terminal.