ADC, APM Terminals Sign $242Mln Agreement to Expand Aqaba Container Terminal

The Aqaba Development Corporation (ADC) signed an agreement with APM Terminals, one of the world's largest port operators, to develop and manage the Aqaba Container Terminal. The agreement involves a direct investment of $242 million to increase the terminal's capacity to over 1.7 million TEUs, aiming to position Aqaba as a leading player in regional and international trade. The project will enhance Aqaba's role as a vital hub in global supply chains, leveraging the expertise of APM Terminals, a subsidiary of the global shipping giant MAERSK, in managing ports and shipping routes worldwide. This partnership is expected to improve Jordan's competitiveness by facilitating smoother trade links with international markets and attracting foreign investments to the Kingdom. Prime Minister Jaafar Hassan was present at the signing ceremony, underscoring the importance of the project in advancing Jordan's economic infrastructure. The agreement reflects Jordan's commitment to its Economic Modernization Vision, desi gned to boost economic growth through local and foreign investments, while creating new job opportunities. The partnership, approved by the Cabinet last week, also reinforces the long-standing collaboration between Aqaba Development Corporation and APM Terminals, which dates back to 2006. Over the years, this partnership has led to a more than 300% increase in the port's productivity and the expansion of its quay from 500 meters to 1,000 meters. The current expansion is set to further enhance the terminal's capacity and efficiency, ensuring Aqaba's prominence in the maritime industry for years to come. The agreement also includes commitments to infrastructure development in line with global best practices, particularly in reducing carbon emissions, as Jordan aims to achieve carbon neutrality by 2040. These improvements are expected to position Aqaba as a leading green port in the region, in line with Jordan's Green Growth Plan. Additionally, APM Terminals committed to not partnering with competing ports i n the region, securing Aqaba's competitive advantage. The Aqaba Development Corporation anticipates significant financial returns from the agreement, with projected revenues of approximately $2.5 billion between 2024 and the agreement's extension until 2046. This revenue, along with increased exports and investments, is expected to significantly contribute to Jordan's national economy. Since the partnership and development agreement began in 2006, Aqaba Container Terminal has seen significant growth and high efficiency in its operations. This is evident in the marked improvement in the port's performance, with productivity increasing by more than 300% compared to the period before 2006. The quay was expanded from 500 meters to 1,000 meters, and the terminal's capacity increased from 600,000 containers to 1.3 million containers. As of mid-2023, Aqaba Development Corporation's total revenues from investment rights and dividend distributions reached JD 561 million, divided between JD 396 million from investm ent rights and JD 165 million from dividends. Source: Jordan News Agency