AD Ports to invest $251m to upgrade and operate Angola's Luanda Port

The concession agreement spans 20 years and can be extended for another decade

Port of Luanda in Angola. Courtesy DP World
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AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, will operate and upgrade the existing Luanda multipurpose port terminal in Angola.

AD Ports will invest $251 million towards the modernisation of the terminal and development of the logistics business over the next three years until 2026, it said on Tuesday.

There is a possibility to increase the investment to $379 million over the concession term and in line with market demand, it said.

The concession agreement with the Luanda Port Authority, which spans 20 years and can be extended for an additional decade, has been finalised with logistics and transportation firms Unicargas and Multiparque.

AD Ports will acquire an 81 per cent stake in a joint venture that will operate the terminal and a 90 per cent stake in another venture that will serve the complex and the broader Angolan logistics market.

“The multipurpose terminal will be modernised to attract business from leading global shipping lines and offer the highest levels of service efficiency and quality,” said Capt Mohamed Al Shamsi, managing director and group chief executive of AD Ports Group.

The deal comes after AD Ports teamed up with various Angolan organisations in January last year to enhance maritime connectivity along Africa’s west coast.

It also signed a framework agreement with Angola’s Ministry of Transport to develop maritime services and infrastructure across the country.

Some of the areas highlighted under the framework agreement included ferry and cabotage services, maritime passenger terminals, logistics platforms and a maritime academy in Angola.

It also covered plans to consider the development of the Caio Deepwater Terminal at Cabinda Port, in Angola’s oil-rich north-west.

With a population of 34.5 million, growing at a rate of 3.2 per cent, and a gross domestic product of $74 billion, Angola is the sixth largest economy in sub-Saharan Africa.

The Port of Luanda, which handles more than 76 per cent of the country’s container and general cargo volumes, serves as one of the main trans-shipment hubs for Central-West Africa.

It also enables maritime trade access to landlocked countries, including the Democratic Republic of the Congo and Zambia.

The port is expected to benefit from the growth in the country’s container volumes, which are projected to rise at an average annual rate of 3.3 per cent over the next 10 years, AD Ports said.

Redevelopment of the terminal is expected to be completed in the third quarter of 2026, boosting its container handling volumes from 25,000 twenty-foot equivalent units (TEU) to 350,000 TEUs, and Ro-Ro (roll-on-roll-off) volumes to over 40,000 vehicles.

The port's modernisation is aimed at stimulating economic growth across Central-West Africa, said Ricardo de Abreu, Angola’s Minister of Transport.

“This collaboration marks a significant milestone in our mission to modernise infrastructure and expand global trade access,” he said.

AD Ports said it is also exploring opportunities to support the country’s offshore industry and other maritime sectors.

It intends to use assets such as work accommodation vessels, passenger ferries, platform supply vessels, and other maritime craft and infrastructure.

Updated: April 23, 2024, 8:17 PM