French container line CMA CGM has struck a deal to run a new terminal in the United Arab Emirates for 35 years.
The shipowner and domestic group Abu Dhabi Ports (ADP) will invest a combined AED 570m ($154m) into setting up the "state-of-the-art" facility at the port of Khalifa.
Capacity will be 1.8m teu per year when it opens in 2024.
The terminal will be the first semi-automated container port in the Gulf Cooperation Council region.
The two companies are forming a joint venture to run the terminal, in which CMA CGM will hold 70% and ADP the rest.
Construction is set to begin this year.
The job involves an initial quay length of 800 metres, 1,200 metres of quay wall, a 3,800-metre breakwater, a railway platform and 700,000 square metres of terminal yard.
The facility will give CMA CGM a new regional hub to develop trade between Abu Dhabi and South Asia, western Asia, East Africa, Europe and the Mediterranean, as well as the Middle East and the Indian subcontinent.
The plan is part of the French line's global expansion strategy as a leading terminal operator.
The group operates 49 port terminals in 27 countries via subsidiaries CMA Terminals and Terminal Link.
CMA CGM said Abu Dhabi's central geographical location, at the centre of international trade routes, enables the company to implement strategic development plans.
The liner operator has been present in the UAE for 15 years, employing about 450 people in 10 offices.
The line runs 13 weekly services from the country to nine other ports.
"The ambitious project we are launching today in Abu Dhabi marks an important milestone in CMA CGM’s development strategy in the region," said Rodolphe Saadé, chairman and chief executive officer of CMA CGM.
Trade flows to speed up
"This state-of-the-art terminal will contribute to enhancing Khalifa Port’s position as a leading global hub and to boosting the region's economy, accelerating trade flows in and out of Abu Dhabi."
In April, CMA CGM said it was planning to reconstruct Lebanon's blast-hit port of Beirut over the next three years.
A scheme costing between $400m and $600m was being considered despite political deadlock in the country that had hindered decisions on the work.
The port was torn apart by an explosion of chemicals in August last year that killed 200 people.
The shipowner's plan was first outlined to the government last September, CMA CGM's general manager Joe Dakkak, told Reuters.
