AD Ports Group is setting up a new ship repair plant in the United Arab Emirates (UAE).

The expanding Abu Dhabi ports and shipping player has signed a 25-year deal with Singapore logistics group Crystal Offshore to build a shipyard at the Port of Khalifa.

The deal involves a 20,000-square-metre plot of land and an associated quay wall, which will be allocated to Crystal for construction.

The site will cater for cargo vessels and offshore ships, as well as jack-up rigs and floating production storage and offloading units.

Saif Al Mazrouei, AD Port’s chief executive for terminals, said: “As we look towards the future, we will continue our drive to further diversify the service offerings in our ports in the UAE and abroad.

“We aim to achieve this by forging strong partnerships such as the one we are entering into with Crystal Offshore, ensuring that we remain the global port operator of choice for our customers.”

Crystal Offshore CEO Sujith Sekharan said: “We have a strong track record with contractors in the region, and with this long-term partnership we anticipate significant and fast growth of our market share, greatly assisted by the geographical proximity and excellent infrastructure that Khalifa Port has to offer.”

Last month, AD Ports continued to build up its tanker fleet.

Brokers reported time charter deals involving a VLCC and four LR product carriers, including one controlled by Eyal Ofer-owned Zodiac Maritime.

The charter deals followed a purchasing spree earlier in May in which the group spent a combined total of AED 955m ($260m) to buy five bulk carriers and three crude oil tankers.

AD Ports said the purchases were made in conjunction with its bulker and tanker partnerships with Bangladesh’s Saif Powertec and Kazmortransflot, a subsidiary of the Kazakh National Oil Co, also known as KazMunayGas.