DPA announces commencement of AED 5 billion stage one of mega expansion project at Jebel Ali Port

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Dubai Ports Authority (DPA) has announced the commencement of stage one of the mega expansion project at Jebel Ali Port. The stage one expansion costing AED 5 billion (US$ 1.4 billion), will increase storage handling capacity at the port by 5 million Twenty Foot Equivalent Units (TEUs) and add 2.5 kilometers of quay length. Moreover, the total container terminal area at Jebel Ali Port will be extended by approximately 173 hectares.

The announcement was made during the contract signing ceremony between DPA and Hyundai Engineering and Construction Company Limited for the first stage of the expansion. The value of the contract was estimated at AED 250 million. The ceremony was attended by Sultan Ahmed bin Sulayem, Executive Chairman, Ports, Customs and Free Zone Corporation (PCFC), Mohammad Sharaf, Managing Director, Dubai Ports International, Mohammed Al Muallem, Executive Director, Technical and Technology, Dubai Ports Authority and Adnan Ali Alabar, Director, Ports, Planning and Information Systems Department, DPA.

“The outstanding growth in volumes in container and general cargo at Dubai Ports over the last three years prompted us to accelerate our expansion projects, particularly at Jebel Ali Port, to achieve our goals of delivering highest levels of customer service and efficiency,” said Sultan Ahmed bin Sulayem. “The market demands and customer needs have been constantly changing, requiring us to make timely investments in infrastructure facilities that will help us in efficiently handling large volumes of business. This mega expansion project consists of 14 stages and is expected to be completed by 2030.”

The first stage of the mega expansion project will be carried out by Hyundai Engineering and Construction Company Limited. This stage includes the construction of 2.5 kilometers of quaywall and casting of the concrete block. The first stage of the expansion will be divided into two phases, with the first phase expected to be completed by the first quarter of 2007, while the second stage scheduled for completion by the first quarter of 2008.

“The mega expansion will enable Jebel Ali Port to continue to be a driving force in the economic progress of Dubai in the immediate and foreseeable future. The completion of the first stage of the expansion will result in a 20 per cent increase in the handling of transshipments and a 16 per cent increase in imports and exports,” said Adnan Ali Alabar.

DPA has commissioned a master plan together with an Environmental Impact Assessment (EIA) for the new expansion at Jebel Ali. The EIA will ensure that operations at the industrial units around DPA are not disrupted in any way by the large-scale expansion activities at the port.

For the first stage of the expansion, DPA has awarded design contracts to the leading full service engineering firm, Han Padron Associates for the quaywall, and dredging and reclamation work. The upland facilities design contract for infrastructure and buildings has been awarded to UK based consultancy firm Scott Wilson Kirkpatrick, whereas the American firm Parsons International Limited has been appointed as Project Manager for the first stage of the expansion.

“With immense experience in global markets such as Kuwait, Singapore and Yemen, Hyundai is certain to complete the first stage of the project within the contractual period. Due to significant time restraints Hyundai has already commenced logistics operations. We are looking forward to working hand in hand with DPA for the successful completion of the project by the first quarter of 2007,”said Tan Kul Kwon, Senior Vice President, Regional Headquarter, UAE, Qatar and Oman, Hyundai Engineering and Construction Company Limited.

“This major expansion project reinforces DPA’s commitment to adopt the latest available technology in port and terminal planning and the most sophisticated port engineering know-how, to foster the development of a state-of-the-art port facility,” added bin Sulayem.

DPA recently announced a 22 per cent increase in container traffic in the first half of 2005 compared to the same period last year, continuing its progressive performance in port operations. Further, DPA also successfully handled the arrival of several large container vessels, such as the 335 meter long MSC Rachele, one of the world’s largest container ships, with a capacity of 8238 TEUs.