Dubai Ports International today takes charge of the Port of Fujairah's container terminal, which will be known as DPA (Dubai Ports Authority)-Fujairah Terminal.
Under a 30-year concession agreed earlier this year, Dubai Ports International (DPI) will spend more than Dh568 million ($155 million) to develop and operate the terminal. DPI is a port investor, operator and manager set up in 1999 by the Dubai government.
DPI announced a similar agreement with the port authorities of Abu Dhabi in January, but the takeover date has yet to be announced. Upgrades to the Fujairah terminal will include new super-post Panamax ship-to-shore gantry cranes and yard handling equipment that will lift annual capacity to an eventual 1.7 million TEU (twenty-foot equivalent units).
Fujairah's deep-water facility has more than 1.3 kilometres of quay.
While DPI will operate the container terminal, all non-containerised cargo will continue to be handled by the Port of Fujairah, such as general cargo, oil, aggregate and project cargo, said Captain Mousa Murad, general manager of Port of Fujairah. Officials declined to reveal the financial terms of the management contract.
"The deal is good for the UAE economy and especially for Dubai and Fujairah. If we did not move forward with such an agreement many shipping lines may have gone elsewhere," Capt Murad said. He expected DPI's international experience in terminal management to generate more business for Fujairah and attract more shipping lines to call on the port.
"Dubai will benefit by the location of the port (on the east coast and outside the Straits of Hormuz) and Fujairah will benefit from the new business and investment which DPI will bring in," said Capt. Murad.
Currently, the two major lines calling on the port on a regular basis are APL (American President Lines) and UASC (United Arab Shipping Company) with a number of feeder lines.
Fujairah is also the second-largest bunkering centre in the world, second only to Singapore.
The agreement between the Fujairah Port Authority and DPI also includes an option to mutually extend the concession by a further 20 years, potentially taking the contract through to 2055.
DPI has contracts for operating five international ports Jeddah in Saudi Arabia, Djibouti, Vizag and Kochi in India and Constantza in Romania.
Late last year, DPI acquired CSX World Terminals a leading international terminal developer and operator headquartered in the United States, with operations in Asia, Europe, Australia and Latin America. This transaction makes Dubai Ports, which includes DPI and DPA (Dubai Ports Authority) the sixth largest global ports operator.
Gulf News
