Khalifa Port to House the First Commercial Bulk Liquid Storage Terminal in Abu Dhabi
04.06.2020 - NEWS

March 23, 2020 [Arabian Chemical Terminals] – Abu Dhabi Ports has signed a strategic agreement with Saudi Arabia based Arabian Chemical Terminals (ACT) that will see the development of the emirate’s first greenfield commercial bulk liquid storage terminal at its flagship, deep-water Khalifa Port.

Further diversifying Abu Dhabi Ports’ portfolio with enhanced capabilities in the handling of liquid bulk products and gases, the project will benefit existing customers and attract new customers in the region seeking liquid bulk storage.

Serving as the first terminal to be developed by ACT in the UAE, the facility’s strategic location and advanced facilities, which will deliver world-class logistics and industrial services, is expected to appeal to ACT’s current clientele that includes some of the world’s largest oil and gas firms. Both new and existing customers will be able to take advantage of Khalifa Port’s strategic location combined with its improved maritime, logistics, and industrial capabilities

The agreement for the bulk liquid terminal, which will be developed on a 50,000 square metre land plot adjacent to a 16 metre deep-water quay access, with option for an additional 150,000 square metres of land was signed by Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports and Rakan Alireza, Managing Director of Arabian Chemical Terminals Ltd and Deputy Managing Director of Reza Investment Company Ltd.

To maintain business continuity while ensuring adequate prevention measures against the spread of Covid 19 were in place, the signing of the agreement was conducted remotely through Abu Dhabi Ports’ digital capabilities.

As per the agreement, the project is set to be completed in two phases with the first stage slated for commissioning in the second half of 2022 entailing the deployment of 44 storage tanks sized 1250 and 3000 tonnes each. The terminal’s second phase will commence following expansion of the surrounding area and will consist of a number of larger industrial storage tanks and spheres.

Upon completion, the facility will be able to handle liquid bulk products that include vegetable oils and oleochemicals, bitumen, liquid gases, petrochemical downstream products, hydrocarbons and fuels, as well as non-liquid gases, speciality and niche chemicals. Broadening the range of capabilities and value offering for Abu Dhabi Ports’ clients, particularly those in the oil and gas and manufacturing segments, the new bulk liquid storage terminal at Khalifa Port will provide customers with the opportunity to reduce their costs of outsourcing their liquid and gas expenditures.

Both new and existing customers will be able to take advantage of Khalifa Port’s strategic location combined with its improved maritime, logistics, and industrial capabilities.

Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “Providing technology-rich, end-to-end logistics solutions for customers of all sizes and industries is at the core of Abu Dhabi Ports’ diversification strategy.

“The commitment to a 50-year lease by our Saudi Arabia based partner ACT serves not only as an example of strengthening of economic ties between Saudi Arabia and the UAE, but also highlights the cooperative spirit shared by the two nations to drive future trade growth. Working closely with ACT, we are pleased to now offer a comprehensive suite of integrated logistics solutions that are powered by the most advanced technologies available in the market.

Rakan Alireza, Managing Director of Arabian Chemical Terminals Ltd and Deputy Managing Director of Reza Investment Company Ltd. said: “We’re excited to be spearheading the development of our first commercial tank farm in the UAE, here in Abu Dhabi, as we previously pioneered in KSA.

“Located between Abu Dhabi, Ruwais, and Dubai industries, the new liquid terminal will not only prosper as a result of its strategic location, but will be further bolstered by Khalifa Port’s multi-modal connectivity with access to the sea and UAE’s extensive road and future GCC railway network.

“In addition to supporting our overseas expansion strategy, the project will also provide the foundation for other potential terminal activities within the emirate of Abu Dhabi.”

Beyond the development of the bulk liquid terminal, ACT is exploring different opportunities to expand its service offering at Khalifa Port and its surrounding environment. This expansion includes the facilitation of fuel bunker services for port customers, drumming and ISO filling services, the development of an independent laboratory, realisation of MARPOL slops reception facilities, ADR qualified trucking and distribution services, as well as offering stevedoring services that will support other liquid product custody transfers.

ACT is also considering new avenues to support KIZAD and its clients, such as providing them with feedstock offerings or assistance in selling their yields, in addition to cooperating with the industrial zone to develop warehouses for both dry and liquid dangerous goods.

 

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