Trade and logistics company AD Ports Group has signed a 30-year concession agreement to manage and operate the Aqaba multipurpose port, as the Abu Dhabi company continues to expand its regional presence.
Under the deal, a joint venture will be set up to manage and operate the port, with AD Ports holding 70 per cent ownership and Aqaba Development Corporation (ADC) holding the remaining 30 per cent, the companies said in a statement on Thursday.
AD Ports will invest Dh141 million ($38.4 million) in the venture and expects to formally assume operations of the port in August this year.
The deal comes after AD Ports in 2021 signed multiple strategic partnership agreements with ADC to develop tourism, logistics, transport and digital infrastructure in Aqaba. The deals included developing and modernising the multipurpose port as well as the King Hussein International Airport, Marsa Zayed cruise terminal and an advanced digital port community system.
The latest deal represents the continuing “economic co-operation” between the UAE and Jordan, including the development initiatives implemented by AD Ports in Aqaba City, said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports Group.
The port of Aqaba is Jordan’s dominant gateway for foreign trade, handling about 80 per cent of the country’s exports and 65 per cent of its imports. Aqaba is also a vital trade transit point for Saudi Arabia and Iraq.
The Aqaba multipurpose port handles general cargo, grains, livestock and project cargo. It has an annual handling capacity of 11 million tonnes, supported by nine berths, a quay length of 2km, and a draft of 13.5 metres.
Last year, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units (CEUs) imports of Ro-Ro (roll on-roll off), which refers to ships transporting vehicles, mining equipment and boats.
It marks AD Ports' largest infrastructure investment in Jordan to date, the statement said.
“This project will enhance Aqaba’s attractiveness as a regional logistics, industrial, and tourism hub, while strengthening connectivity with regional and international markets,” said Shadi Majali, chief commissioner of the Aqaba Special Economic Zone Authority.
“It also reflects the effectiveness of close co-ordination between national institutions, the private sector, and international partners in delivering transformative projects that generate employment, stimulate investment, and contribute to long-term economic resilience.”
In January last year, AD Ports also appointed UAE developer Mag Group for the first phase of development of Marsa Zayed, a 3.2 million square metre beachfront tourism and business community in Aqaba.
It also signed a contract with Jordan Customs Department to manage and operate the Al Madouneh Customs Centre in Amman in February last year. The centre aims to streamline cross-border trade, reduce clearance times and enhance supply chain efficiency.
With the addition of Aqaba multipurpose port, AD Ports now has a global portfolio of 35 ports and terminals across the UAE, Jordan, Spain, Egypt, Syria, Pakistan, Kazakhstan, Tanzania, Angola and the Republic of the Congo.
