Kuwait Ports Authority (KPA) said ‍on Monday it ‍had signed a memorandum ​of understanding with Abu Dhabi Ports Group to ⁠develop and operate the container terminal at Kuwait’s ⁠Shuaiba port under ‌a concession agreement.

Shuaiba port, established in the 1960s, is Kuwait’s ⁠oldest port. It covers a total area of 2.2 million square metres (543.63 acres) and has 20 berths, while ⁠the container terminal has ​a storage area of 318,000 sqare metres, according to ‍KPA’s website.

The port, located about 60 km (37.3 miles) ​south of the capital, handles commercial cargo, heavy equipment, raw materials and chemicals essential to various industries.

The MoU represents “the first preliminary step” toward concluding a concession contract, subject to the completion of required studies, KPA said in a statement without disclosing the value ⁠of the deal.

Under the ‌agreement, Abu Dhabi Ports Group will prepare the technical, environmental and financial ‌studies ⁠needed for the project, including infrastructure requirements.

(Reporting By ⁠Ahmed Hagagy Editing by Tomasz Janowski)