Aqaba Container Terminal Expansion to Create
New World-Class Container Facility on the Red Sea

Press Release: December 14, 2009 at 8:30 am Central Europe Time

With planned quayside depth of 17 meters and a wharf length of 1000 meters, Jordan’s sole container port is set to become an increasingly important shipping hub for the Middle East and Levant. The Hague, Netherlands – The Aqaba Container Terminal (ACT) announced a terminal expansion project, including a 460 meter extension of the quay, which will increase annual container throughout capacity to 2 million TEUs when fully completed and equipped.

The Port’s 2009-2013 action plan calls for capital expenditure of $235 million USD, bringing total investment since 2006 to $335 million USD. The 500,000 square meter (124 acre) facility will double its wharf length to 1000 meters. Two super Post-Panamax cranes, each capable of 18-container reach are scheduled for delivery in the first quarter of 2010, with additional units added as container volumes increase.

ACT, which is part of the APM Terminals Global Terminal Network, is the Kingdom of Jordan’s primary access to the international shipping lanes of the Red Sea and beyond. Despite the severe drop-offs in container traffic worldwide due to the global financial crisis, ACT saw container traffic grow by 25% during the first three quarters of this year. In 2008, container volume at the port surged by 42% to approximately 600,000 TEUs.

Charles Menkhorst, CEO of APM Terminals Africa, Middle East and India Subcontinent region stated ”APM Terminals is committed to developing and upgrading several terminals in the region and ACT is one of the major projects we are focusing on to develop as a hub. Our strategy is to ensure port infrastructure keeps pace with market growth and we are taking the necessary steps today to ensure Jordan’s future is served by a world-class port.”

“This expansion represents not only our commitment to the people and economy of Jordan, but to the entire Red Sea and Levant, as well as interior destinations such as Iraq,” added ACT’s Chief Executive Officer Klaus Holm Laursen.

Imad Najeeb Fakhoury, CEO of the Aqaba Development Corporation (ADC) and Chairman of the Board of ACT, stated ”This project is a major milestone not only for Aqaba, but for the Kingdom as a whole in terms of upgrading and expanding Jordan’s supply chain positioning through the Aqaba gateway, making a significant contribution to the prosperity of the national economy.

The increasing volume demands on the terminal, in spite of the financial crisis, placed ACT’s capacity under pressure, resulting in a call for such a move which is in line with our master plan. The project will be completed in stages with the final phase set for 2013, enhancing the role of Aqaba as a strategic gateway to the Levant region and the wider Middle East. The terminal is ideally-located to access the Iraq market and the wider Levant region, offering shippers expanded opportunities to participate in the rebuilding of Iraq. The ADC-APMT joint venture is a true success story in terms of Public Private Partnerships (PPPs), which is ADC’s goal to develop on behalf of the Jordanian government Aqaba’s infrastructure.” Michel Rollet, Projects & Contracts Manager of Soletanche Bachy, the main contractor for the berth expansion, said “The ACT project represents one of our major projects that will benefit from our global best practices and ability to deliver projects on schedule”.

During this past year, port investments have included STS cranes, six Rubber-Tire Gantry Cranes (RTGs), 100 additional refrigerated plugs, and the upgrading of the existing port facilities. Continued growth in containerized cargo trade is forecast for Jordan, with the continued development of logistics facilities in the Aqaba Special Economic Zone (ASEZ), and the ongoing transition to containerization of the regional commodities trade in rice and sugar.

About Aqaba Container Terminal (ACT)

ACT is a joint venture between Aqaba Development Corporation (ADC) which is the Jordanian Government's central development vehicle for the Aqaba Special Economic Zone (ASEZ) and APM Terminals - one of the world's leading container terminal operators.

After signing a Terminal Management Contract with ADC in 2004, APM Terminals took over the management and operation of the terminal. A further 25-year Joint Development Agreement (JDA) was signed between ADC and the ACT in 2006. The joint venture represents the first Public Private Partnership (PPP) initiative launched by ADC as part of its program to rehabilitate and expand port terminals of Aqaba and wider logistics and transport infrastructure within ASEZ.

APM Terminals