Khalifa Port will now cost Dh13bn: ADPC
Abu Dhabi Ports Company (ADPC), master developer and regulator of ports and industrial zones in Abu Dhabi, said the construction of Khalifa Port would cost Dh13 billion.
The earlier estimate was $2.18bn (Dh8bn).
According to a Bloomberg report, Tawfiq Yousef Al Mubarak, ADPC's Executive Vice-President – Ports Unit, said during an interview in Shanghai that the construction of Khalifa Port will cost about Dh13bn.
However, during a presentation in March, the cost structure of building the new port was broken down as follows: dredging and reclamation Dh5.5bn, port onshore facilities project Dh1.4bn and earthworks for the industrial zone Dh1.1bn.
According to him, the Abu Dhabi Government would be funding the project.
In March, Mohamed Al Shamsi, Vice-President of the Khalifa Port and Industrial Zone Development, said work on the first of the project's five phases is proceeding on schedule, and added: "The phase will be completed in 2012. We face no financial problems because of the support we receive from the Abu Dhabi Government."
Meanwhile, speaking in Shanghai, Mubarak reiterated that the Khalifa Port would be managed by Emirates Ports Company, a joint venture between Dubai's DP World and ADPC.
"There will be a new company called Emirates Ports Company, a new partnership between Abu Dhabi and Dubai," said Mubarak. "It is very important to adopt one port strategy." This follows reports in a section of the media that Abu Dhabi is considering a new port operator for Khalifa Port.
The DP World deal with ADPC to run the port was initially announced in 2007.
An ADPC spokesperson yesterday told Emirates Business that discussion with DP World is still continuing and nothing has been signed yet. "We are not talking about any new operator," the spokesperson said.
ADPC is developing the harbour as part of the multi-billion dollar Khalifa Port and Industrial Zone (KPIZ), which will provide critical infrastructure to support the accelerated growth of Abu Dhabi's industrial and commercial sectors as outlined in the Abu Dhabi Vision 2030.
The main port will eventually be moved from Mina Zayed to Khalifa Port at Al Taweelah, which will link all major regional cities and industrial zones via road and rail networks.
Last week, Mubarak briefed a visiting delegation of Arab Ports Federation, headed by Chairman Sheikh Sabah Gaber Al Ali Al Sabah about the progress of work on Khalifa Port.
During the visit, ADPC officials provided updates on Khalifa Port, which will replace Abu Dhabi's existing port, Mina Zayed, by 2012.
"Our development plans for Abu Dhabi's ports are designed to be in alignment with the region's long-term maritime strategy, which is why we consider Al Sabah's visit as an excellent opportunity to enhance collaboration on the overall Arab maritime agenda. We are pleased that he shares our vision of developing ports that do not compromise the safety and health of its environments," said Mubarak.
Infrastructure work on the project is on and is scheduled for completion in phases.
When phase one is completed in 2012, Khalifa Port will have an annual container capacity of two million TEUs and a cargo capacity of nine million tonnes. The industrial zone will be operational from 2013 and will feature more than 100 sq km of basic, midstream and downstream manufacturers in industry clusters such as aluminium, petrochemicals, glass and paper.
The Arab Ports Federation was established in 1976 to reinforce the development of Arab ports. As one of the Arab specialised federations working within the Arab League, the federation oversees maritime activities and needs of 20 member states.