The emirate has already awarded contracts worth nearly Dh3.5bn for the first stages of the project, which is located mid way between Abu Dhabi and Dubai cities and will be served with one of the Middle East's largest industrial zones, they said.

To ensure a capital influx to the port and the zone, authorities are planning to give competitive prices to investors and the focus will be on the private sector from the UAE and other countries.

"So far, we have awarded three main contracts in the project, covering dredging and burial of water for the port's island, and the infrastructure for the industrial zone... these contracts are worth around Dh3.5 billion," said Ahmed Said Al Kalili, Chief Executive Officer of  Abu Dhabi Ports Company.

"The next stage will see the award of more bids for this enormous project, which is considered a vital stage in the emirate's economic development. Both the port and zone will play a decisive role in the development process in the coming stage."

Speaking at the Abu Dhabi Chamber of Commerce and Industry this week, Kalili said the first phase of Khalifa Port would be completed in 2010 and its total area would be around 3.4 square kilometers, located nearly 35 km south of Dubai's Jebeli Ali and about 65km north of Abu Dhabi city.

The adjacent industrial zone will spread over 137 square kilometers but it could be expanded depending on the size of investment.

Kalili said the project, which will be one of the world's largest man-made ports along with Jebel Ali port, would be constructed in five stages and would have an initial capacity to handle about two million containers and 35 million tonnes of cargo per year.

The project coincides with an ambitious five-year development plan unveiled by Abu Dhabi last week to upgrade performance at local departments, attract investment and achieve strong and viable growth.

Abu Dhabi, one of the world's largest oil exporters, has been locked in a drive to attract industrial investment as part of plans to diversify its economy and ease reliance on crude exports. During 2001-2007, cumulative investment in the emirate's non-oil manufacturing sector totalled around Dh56.3bn while at least Dh1  trillion would be pumped by the public and private sectors into development and infrastructure projects in the next five to seven years.

Heavy investments in Abu Dhabi have already started to pay off, with its non-oil gross domestic product recording high growth in the past years.

It soared by 10.78 per cent in 2002, around 11.1 per cent in 2003 and as high as 23 and 19.8 per cent in 2004 and 2005. Growth is estimated at 14 per cent during the period 2006-2007.

By Nadim Kawach

© Emirates Business 24/7 2008

 

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