$46.5bn to be invested in Middle East ports infrastructure

Multi-billion dollar investments in port operations across the Middle East, highlights their continuing role as the most important transport sector for regional trade. There are currently around 35 ports within the Gulf region, many of which are currently undergoing expansion to meet increasing trade demand, especially with unrest spreading across North Africa. Abu Dhabi Ports Company said.


According to Chris Hayman, Chairman of Seatrade, the steady post-recession revival of regional and international trade between the East and West is resulting in increasing volumes of cargo routed in and out of the region.


"Having remained strong throughout the global economic downturn, countries across the Gulf have continued to expand their port operations over the last two years, with growth continuing into 2011 and beyond," said Hayman. The World Ports and Trade Summit is split into six different sessions covering topics including the world economy, trade and ports, future challenges and opportunities for the Middle East and leading drivers of freight markets.


"Recognising both the global nature of the cargo industry and its various areas of specialisation, the summit has been created to address a number of the leading challenges and opportunities presented in the current market," added Hayman.


Some $38.2bn was invested in the region's ports up to 2008, with a further $38.5bn having been allocated during 2009, according to a report produced by Kuwait Financial Centre (Markaz).
Though falling oil revenues and a near-universal decline in trade led to a significant readjustment in this figure during the economic downturn of recent years, positive growth has returned across the region.


In the UAE alone, which accounts for a 61% majority of trade volume among the GCC countries, its ports witnessed a compound annual growth rate of 13% in volume between 2004 and 2008. Although this fell away slightly between 2008 and 2009, it rebounded significantly throughout 2010.


Phase one of Abu Dhabi's Khalifa Port and Khalifa Industrial Zone Abu Dhabi (Kizad) is well underway, with completion due in Q4 2012. ADPC (Abu Dhabi Ports Company) has committed Dhs26.5bn to the first phase of both projects. The first phase of the port will have capacity for two million twenty-foot equivalent units (TEUs) and 12 million tons of general cargo.


"Kizad is expected to contribute up to 15% of Abu Dhabi's GDP by 2030 and as such is set to become a major business hub for the Middle East. We look forward to sharing our plans and development strategies with industry peers at the World Ports and Trade Summit," said Tony Douglas, CEO, ADPC (Abu Dhabi Ports Company).


According to figures from DP World, the UAE handled 11.6 million twenty-foot equivalent container units (TEU) in 2010, an increase of 4% from 2009, with the fourth quarter delivering growth of 7% over the same period in 2009. When the volume increases across its portfolio of 50 international terminals in 28 countries are also taken into account, this figure climbs to more than 14% in year-on-year growth.


In Saudi Arabia, total port throughput increased by almost 10% between 2009 and 2010, with total cargo handled increasing to just under 155 million tonnes, up from more than 142 million tonnes a year earlier.


Similarly, Kuwait's growing regional presence as a port city has continued, with its plans for up to three new ports progressing, including the $1.1bn Boubyan Island development.


Port expansion activities are also proceeding in other parts of the Middle East and North Africa. Jordan's primary shipping gateway to the Red Sea, Aqaba Container Terminal, is undergoing a $235m upgrade, set to boost its annual capacity to 1.6 million TEU.


In Iraq, though further changes and setbacks are likely, given the continuing political instability, $10bn has been set aside for port development, including upgrades to its Umm Qasr and Grand Faw ports. Although it is going through a period of transition, Egypt has plans for Nile River ports in the north and south of the country, as part of its $8.9bn programme of investment in ports and transport to increase the proportion of cargo transported via river and rail.


Jointly organised by Turret Media and Seatrade, The World Ports & Trade Summit is sponsored by the UAE Department of Transport, Etihad Crystal Cargo, Bechtel, GHC, National Bank of Abu Dhabi (NBAD), Boskalis Westminster Middle East, DNV, Citi, Emirates Aluminium, UASC and in association with Abu Dhabi Ports Company, Abu Dhabi Tourism Authority (ADTA), Department of Economic Development, DP World, Abu Dhabi Chamber of Commerce & Industry, the Arab Seaports Federation and Organisation of the Islamic Ship owners Association.
(Source:http://en.portnews.ru)