23 December 2007
Dubai: The Ras Al Khaimah Investment Authority (Rakia) has set aside $500 million (Dh1.83 billion) to bid for foreign port and free zone concessions, a senior official said.
Ras Al Khaimah is bidding for three port management contracts and is in competition with Dubai's DP World and its affiliate Jafza to manage the Poti Seaport of Georgia.
If the Georgia bid is successful, the port will be managed by Rakia in association with the Saqr Port Authority, which is in charge of one of the Gulf's leading bulk cargo seaports.
Ras Al Khaimah is also looking to manage Paradip Port, one of India's 12 major seaports.
"We have formed a consortium with Dubai's ETA Group. We are on the final list for Paradip," Saqr Port chief executive officer Ven Govinda told Gulf News.
"We are looking for more port management businesses overseas. Rakia has allocated $500 million for this. There are opportunities in the region and in Africa," he said.
He said Ras Al Khaimah is among the firms that have been short-listed in the Georgian bid process.
DP World, the world's third largest port firm, and an investment firm from Sharjah are also bidding for the port and an associated free trade zone.
A DP World spokeswoman refused to confirm or deny whether the company was participating in the Tbilisi tender process.
Exploring opportunities
"We constantly explore opportunities in markets around the world. We don't comment on any specific opportunity until there is something to announce," she said.
A delegation from Jafza International and DP World met Georgian officials in November and discussed plans for the seaport development and other projects in the country.
The 49-year period of the concession makes the Georgian port an attractive proposition.
Ras Al Khaimah is also pursuing potential investment opportunities in Tanzanian ports and trade zones.
"This is part of the government's strategy to export its expertise to countries in neighbouring regions," Govinda said.
Managing a foreign port will be a new area of activity for Ras Al Khaimah, which is already involved in Georgia's real estate projects.
Real estate firm Rakeen is involved in the Uptown Tbilisi and Tbilisi Heights mixed-use projects that include development of a five-star hotel, residential towers, villas, shopping malls and offices.
This year Saqr Port has handled 25 million tonnes of bulk cargo, mainly cement, construction aggregate, bauxite, coal, clay and soda ash.
The port handles about 100 ships a month.
The port authority has allocated four berths to Kuwaiti logistics company KGL to conduct container, ro-ro and passenger operations under a 21-year concession.
The container terminal is capable of handling 350,000 TEUs (twenty-foot equivalent units) a year.
By Shakir Husain
Gulf News 2007. All rights reserved.
