MSC Mediterranean Shipping Company (MSC), a Swiss-based logistics company operating the world’s second largest containership fleet, has agreed to invest US$ 1.08 billion (AED 4 billion) with Abu Dhabi Ports to establish a new container terminal.
Since its inauguration in December 2012, Khalifa Port, located in the United Arab Emirates, has become one of the world's fastest growing ports and one of the most technologically advanced ports in the region.
MSC will spread its investment over a 30-year concession agreement period to build upon the UAE’s position in attracting major international companies at Khalifa Port.
The development of the new terminal in addition to another at the port will expand its capacity from 2.5 million TEUs to 8.5 million TEUs in five years.
MSC will begin moving some of its regional container handling to Khalifa Port by July 2018.
This is set to increase Khalifa Port’s capacity from 2.5 million TEU in 2017 to 5.3 million TEU by 2020, making it one of the top 25 ports worldwide in handling containers the beginning of 2019.
MSC will develop the port by increasing the number of ship-to-shore (STS) cranes from 12 to 25 over the next two years.
It will also invest in its berths to make Khalifa Port the first in the region capable of receiving the largest shipping vessels in the world that specialise in bulk cargo shipment.
Founded by MSC and established in 2000, Terminal Investment Limited SA (TIL) will be responsible for the terminal’s investment, management and development to provide MSC and its shipping alliance partners with efficient terminal capacity in the UAE.
The UAE has a strong position as a central hub between Asia, Europe and Africa.
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MSC operates 480 offices across 150 countries worldwide, while its shipping line sails on more than 200 trade routes, calling at 500 ports.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Abu Dhabi Ports, said: “These agreements cement the UAE and Abu Dhabi’s position as a global trading, shipping and logistics hub. This agreement will also promote economic growth and increased investment through the rise in container traffic.
Diego Aponte, President and Chief Executive Officer of MSC, commented: “The UAE has a rich history in international trade and after two decades of operating in the country, MSC is pleased to continue to support the growth of the local maritime economy.
“We are confident that with this investment we will continue to ensure a high level of service for our customers and have the capacity to grow the scale of our operations in the UAE.”
Captain Mohamed Juma Al Shamisi, Chief Executive Officer at Abu Dhabi Ports, said: “The agreement with MSC is yet another remarkable milestone in Abu Dhabi Ports’ journey and the region as a whole.
“This agreement comes with multiple strategic benefits to customers and companies working shipping and logistics, including faster and more efficient services, easier access to more markets in the region and the world.”
