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For the Arabian Gulf countries, strategically located between Europe and Asia, sea trade was always important. However, focus on the sector has increased since crude oil prices began to slide, forcing the oil-dependent countries to consider economic diversification initiatives to boost revenue. Under these measures, GCC nations are pumping in funds to expand and develop facilities at their ports and container terminals, in order to boost their maritime and logistics industries.
As part of this week’s Spotlight, which will focus on the logistics sector, Argaam takes a look at some of the major ongoing port expansion projects in the region:
1) Red Sea Gateway Terminal, Saudi Arabia
Spearheaded by Saudi Industrial Services Co (SISCO), the plan is to increase the capacity of the terminal, part of Jeddah Islamic Port, by 50 percent. The total cost of the expansion project is estimated at SAR 650 million. The project includes rehabilitation works and increasing the terminal capacity to accommodate three TEUs (twenty-foot equivalent units) simultaneously, as well as raising the number of containers handled to 2.25 million per year.
2) Jebel Ali Port Terminal 4, UAE
Port operator DP World signed contracts last year for the expansion at its flagship Jebel Ali Port. Under Phase 1 of the project, Terminal 4 will add 3.1 million TEU by 2018, taking Jebel Ali Port’s total capacity to 22.1 million TEU. The next phase aims to expand Terminal 4’s capacity to a total of 7.8 million TEU, with an additional operational yard with a quay length of 1,000 meters. Phase 1 capex is approximately $750 million.
3) Port of Fujairah, UAE
In June, Abu Dhabi Ports entered a concession agreement with the Port of Fujairah to develop, manage and operate the Fujairah facility. Abu Dhabi Ports said it plans to invest in development projects, including deepening of berths to -16.5 meters to allow bigger vessels to come to the Port of Fujairah and building 300,000-square-meter yard of storage space. The work is expected to start in 2018, with the port's capacity expected to reach 1 million TEU and 700,000 tons of general cargo by 2030.
4) Sohar Port Terminal D, Oman
Operator Oman International Container Terminal (OICT) aims to start construction on Terminal D by the end of 2018 or early 2019. The expansion will boost the port’s annual container ship handling capacity fourfold to 6 million TEU. Terminal D is expected to have a 1.2-km long jetty, once commissioned. Last year, OICT completed Terminal C for container vessels.
Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com
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