Aqaba Development Corporation (ADC), the owner of Aqaba ports, signed a joint venture agreement with APM Terminals, one of the world's leading terminal operators, to manage, operate and expand the Aqaba Container Terminal for a period of 25 years.
The signing ceremony took place between H.E. Imad Fakhoury, ADC Chairman and CEO, and Mr. Jack Helton, Vice President of APM Terminals for West & Central Asia. Implementation of the joint venture is the culmination of the initial two-year Management Service Agreement that was signed in 2004 between ADC and APM Terminals.
Aqaba Container Terminal, strategically located at the crossroads of four countries and three continents, is the principal gateway for Jordanian container trade and also serves transit cargoes to/from Iraq and other regional markets. The current terminal configuration consists of 540m of quay supported by over 8,800 ground slots.
A 25-year plan for the Container Terminal has been jointly agreed by ADC and APM Terminals in order to achieve additional capacity and improve operational efficiency while ensuring the highest levels of productivity and customer service. The plan aims to achieve an ultimate annual capacity of 2.4 million TEU. The three-phase development program consists of a combination of physical expansion, equipment acquisitions and operational improvements.
ADC Chairman and CEO, H.E. Imad Fakhoury said,
"We are very pleased to have APM Terminals as our business partner in this venture. This major investment project reflects and reinforces ADC's priority to create world class logistics and industrial infrastructure and superstructure in Aqaba. This partnership demonstrates a true model of public-private-partnership and creates a vehicle for ADC and Jordan to secure resources for developing, expanding, equipping, financing and operating our container terminal in a manner that ensures its continued transformation into a world class operation."
Mr. Jack Helton, Vice President of APM Terminals for West & Central Asia commented, "This is an important milestone in our partnership with the Aqaba Development Corporation. Together, our teams have already set new standards in productivity, safety and growth. The 800 colleagues working in the port have embraced the change and have launched the port's new era."
Since the 2004 management agreement, APM Terminals has successfully implemented upgrades to the port and focused on establishing world-class performance standards. Vessels now berth on arrival per guaranteed berthing windows. Truckers benefit from streamlined landside operations and strict safety measures.
Equally important, APM Terminals has established strong training and development programs for the workforce to ensure operational excellence. The results exhibit great improvement in all aspects. Consequently, shipping lines have long-since cancelled the congestion surcharges that once marred Jordanian trade to the extent that Lloyd's has nominated ACT last year as one of the three top container terminals in the Arab region and Indian Subcontinent.
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ADC Background:
Aqaba Development Corporation (ADC) was established in 2004 and is the central development company for the Aqaba Special Economic Zone (ASEZ). It is a private shareholding company owned jointly by the government and the Aqaba Special Economic Zone Authority (ASEZA). ADC owns the port, airport and strategic parcels of land as well as the development/management rights for these assets as well as for key infrastructure and utilities in ASEZ. ADC is mandated to develop ASEZ; build new and expand existing infrastructure and required superstructure; create business enablers for ASEZ; and manage/operate its key facilities; all through maximizing attraction of private sector developers/operators through public-private-partnerships. ADC has also the responsibility to implement the ASEZ Master Plan in a manner that ensures integrated development and transforms Aqaba into a leading business and leisure hub on the Red Sea.
ASEZ Background:
The Aqaba Special Economic Zone (ASEZ) was launched in 2001 as a duty-free, low tax multi-sectoral development zone encompassing the total Jordanian coastline (27 km), the sea-ports of Jordan, an international airport and the historical city of Aqaba with a current population of 90,000 people. It encompasses an area of 375 Km2 and offers global investment opportunities in a world-class business environment ranging from tourism to recreational services, from professional services to multi-modal logistics, from value-added industries to light manufacturing. ASEZ is regulated by the Aqaba Special Economic Zone Authority (ASEZA), which has been mandated with all authorities to manage, regulate and be the municipality for the ASEZ. ASEZA has a truly e-enabled one stop shop and is the single point of contact for all the needs of investors. For more information, please visit: www.aqabazone.com
About APM Terminals:
Based in The Hague, Netherlands, APM Terminals is a leading, independent, global container terminal owner and operator of more than 40 terminals that handled 24.1 million TEU in 2005 for approximately 60 shipping lines. For more information, please visit: www.apmterminals.com
About Aqaba Container Terminal (ACT):
Aqaba Container Terminal (ACT) is the only Jordanian container terminal, and the principal gateway for the Jordanian market. With its strategic location, ACT is also the port of choice for transit cargo moving to and from other countries in the region. In 2005 ACT handled about 392,000 TEU from 463 vessels.
ACT has continuously upgraded the facility and equipment over the past two years, and is looking forward to continuing the process under the new joint venture.
For further information, please contact:
iAqaba/ ADC
Batoul Arnaout
Account Manager
Tel : 06-4611014
ACT:
Patricio Junior
APM Terminals Jordan
CEO, Aqaba Container Terminal
Tel : +962-(0)3-2091120
Fax : +962-(0)3-2039135
APM Terminals:
Tom Boyd
Director, Corporate Communications
APM Terminals International
The Hague, Netherlands
Tel : +31-70-304-2181
© Press Release 2006
