Abu Dhabi Ports and COSCO conclude 35-year concession agreement
Dec 10, 2018 (China Knowledge) - Abu Dhabi Ports and China Ocean Shipping Company (COSCO) Shipping Ports Ltd. have entered a 35-year concession agreement which will allow the latter to operate and developed a new container terminal in the former’s flagship Khalifa Port.
The new terminal seeks to support and facilitate trade flow created from China’s massive Belt and Road Initiative (BRI) which spans 60 countries. The BRI seeks to link China, Asia, Europe, the Middle East and Africa to increase China’s political and trade influence globally.
The port currently serves more than 25 shipping lines and has links to 70 destinations internationally, making it a strategic location for trade.
The deal with COSCO will help Abu Dhabi Ports as it looks to bolster its capacity and attract investment from other nations. Growing demand from Chinese consumers will also provide a strong basis for growth in the long run even amid uncertainty regarding the trade war.
The Khalifa Port has the necessary infrastructure to allow the biggest ships to enter and will become an important hub for the BRI. Located halfway between Abu Dhabi and Dubai, the port not only serves the Middle East, but acts as a transitioning point for the North Africa Indian subcontinent.
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