DP World to manage Yemen container port

Dubai-based terminal operator Dubai Ports World has strengthened its position in the Middle East by coming to an agreement with the Yemen Gulf of Aden Port Corp. to manage container facilities at the Port of Aden.

The two entities have set up a joint venture that will see DP World operating and developing the container terminal in Aden.

The project has been a running saga of sorts, with DP World rivals in Kuwait -- as well as some in Yemen -- crying foul over a previous bid DP World had made in 2006. There were also concerns that DP World managed Aden's chief rival, the Port of Djibouti. Both Aden and Djibouti sit near the southern end of the Red Sea, which leads to the Suez Canal.

The agreement includes the lease of both Aden Container Terminal and of nearby Ma抋lla Container Terminal, and a commitment by the joint venture to invest around $220 million in further developing the port, including building a new 400-meter berth extension to Aden Container Terminal within five years from handover, which is expected by the end of this year, DP World said in a statement. Capacity at Aden port is currently around 700,000 TEUs and is expected to grow to around 1.5 million TEUs by 2012. The joint venture plans to further expand capacity as dictated by market demand as part of the second phase development rights.

Aside from its flagship port in Dubai, Jebel Ali, DP World now operates in four terminals in the Middle East -- Sokhna, in Egypt, Jeddah in Saudi Arabia, and Aden and Djibouti.

We are very pleased to partner with Yemen and to be able to contribute our international experience and expertise to developing the potential of this important facility, said DP World Chairman Sultan Ahmed Bin Sulayem. The port is strategically located to capture significant growing regional transshipment volumes. In addition, Aden is a key domestic cargo gateway for Yemen, and has been experiencing average annual growth in domestic throughput of around 18 percent over the past seven years. We believe Yemen will benefit significantly from efficient port and logistics infrastructure.

Source: American Shipper