CMA CGM is teaming up with ABU Dhabi Ports to build a new terminal

On September 9, CMA CGM signed a 35-year franchise agreement with Abu Dhabi Ports to build a new container terminal at Khalifa Port, which will be the first semi-automated code collection in the Gulf.

The terminal is expected to have a throughput capacity of 1.8 million TEU and will open in 2024. The Terminal, which will be 70 percent owned by CMA Terminal, a CMA subsidiary, and 30 percent owned by ABU Dhabi Ports, is expected to cost about $154 million. With the investment, CGM said it would advance its global expansion strategy for terminal operations.

ABU Dhabi Ports operates multiple business clusters covering ports, industrial and free trade zones, maritime transport, logistics and digital technology, and has a portfolio of 11 ports and terminals in the UNITED Arab Emirates and Guinea, according to the document. Construction of the new terminal under this agreement will begin in 2021 and be delivered in 2024. In the first phase, the length of the terminal will be 800 meters, with an estimated annual capacity of 1.8 million TEU. ABU Dhabi Port will be responsible for supporting offshore engineering and infrastructure development, including a total of 1,200 metres of shore walls, 3,800 metres of breakwater, an external guideway platform and 700,000 square metres of storage yard.

Cma has been operating in the UAE for 15 years. When completed, the terminal will provide a new regional hub for CMA, facilitating its business in ABU Dhabi and South, West, East Africa, Europe and the Mediterranean, as well as the Middle East and the Indian subcontinent. CMA Terminals currently operates 49 terminals in 27 countries through its subsidiaries CMA Terminals and Terminal Link.

In fact, in addition to CMA, two of the world's top four shipping companies use The khalifa port as their transport hub. Cma CGM said that the UAE and ABU Dhabi are located in the middle of the international trade route, which is an important link between east and West markets and maritime trade. With this in mind, CMA will be able to further strengthen the UAE's connection to the world through the construction of the new terminal and strengthen the company's position in the Gulf region.

Rudolf Saad, chairman and CEO of CGM, said the project was an "important milestone" in the company's development strategy in the region. "This state-of-the-art terminal will help enhance Khalifa Port's position as a leading global hub, boosting the region's economy and ABU Dhabi's import and export trade, as well as allowing our group to expand its shipping and logistics network in a region that we believe has great potential for growth."

Falah Mohammed Al Ahbabi, chairman of ABU Dhabi Ports, said ABU Dhabi and the UAE have a stable economic environment and free trade zones, making them ideal for foreign investment. This agreement with CMA CGM will significantly accelerate trade and industrial development in the UAE and beyond. He said the capacity of the new terminals and greater trade links between the terminals would boost employment by encouraging investment in local businesses and industrial zones, accelerating the development of key sectors such as manufacturing and logistics. In addition, the agreement will help ABU Dhabi ports expand their overall capacity to become one of the world's top 10 port logistics operators. Over the next five years, CMA Terminal is expected to drive further development of ABU Dhabi's Khalifa Industrial zone and make a significant contribution to the country's GDP, he predicted.

Captain Mohamed Juma Al Shamisi, THE company's CEO, also said the two companies' joint efforts to build a new container terminal at Khalifa Port will help boost global trade and strengthen ABU Dhabi's position as a hub for regional and international maritime trade.