Industry park to drive Abu Dhabi's new port, CEO says

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Abu Dhabi's new Khalifa Port, built at a cost of $7.1 billion, expects to reach an initial target for container handling capacity in five years on the back of a growing industrial park nearby, a top executive of the management company said.

The port at Taweelah, midway between Abu Dhabi and Dubai, became operational in September. Since then 30 percent of container traffic has been transferred from Abu Dhabi's older port, Mina Zayed.

In six months, all container traffic is to have migrated to the new port, which has a phase-one capacity of 2.5 million TEUs (twenty foot equivalent units). That limit is expected to be reached by 2017, said Tony Douglas, chief executive of Abu Dhabi Ports Co (ADPC).

"The Khalifa Industrial Zone Abu Dhabi (Kizad) is a linked proposition to the port. As it starts to populate, tonnes of feedstock will come in," he said in an interview late last week.

This year the port expects to handle 800,000 TEUs, rising to 1 million TEUs in 2013, he said.

Oil-rich Abu Dhabi, capital of the United Arab Emirates, is investing billions of dollars in industry, tourism and infrastructure as it seeks to diversify its economy beyond oil.

Kizad, which also became operational this year, has Emirates Aluminium as its anchor tenant with several other industries setting up shop in the first phase, which spans 51 square kilometres (20 square miles).

"A cluster for steel, heavy engineering, food and others is well underway at Kizad," Douglas said, adding that 25 percent of the area was now occupied.

Other ports nearby are also expanding, including Dubai's Jebel Ali port, the regional leader. Douglas said he was not worried by competition.

With about 8 per cent underlying annual growth recorded by ports in the region over the last few years and Khalifa focused on growth from Abu Dhabi's own economy, there is enough business for all, he said.

"About 95 percent of containers that come into the port stay with Abu Dhabi, not for transshipment," he said. Besides, Abu Dhabi's petrochemical exports are increasing in volume, he added.

The second phase of Khalifa Port's development will double container handling capacity, but that is planned for 2017 and beyond, Douglas said.

Unlisted ADPC, which manages both the emirate's ports and Kizad, made its first profit in 2010, four years after it was set up, he said, while declining to give specific figures. The state-owned firm obtains funding from the Abu Dhabi government.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Stronger together? Reviewing Emirates' historic partnership with Qantas

Stronger together? Reviewing Emirates' historic partnership with Qantas

One year after the “historic” Emirates-Qantas partnership deal...

Air Arabia to use tried and tested model in Ras Al Khaimah

Air Arabia to use tried and tested model in Ras Al Khaimah

Air Arabia signed an agreement last month to become the official...

Is Saudi Arabia ready for take off?

Is Saudi Arabia ready for take off?

Saudi Arabia has announced two new airlines and $30bn worth of...

1
Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams